Lahore: Shakarganj Limited has reported significant financial challenges for the nine months ending June 30, 2025, as detailed in its condensed interim financial statements. The company's various business segments faced hurdles, and no substantial production activity occurred in the third quarter of fiscal year 2024-25. The company attributes this inactivity to severe financial constraints and challenging market conditions.
The company reported a gross loss of 1,367.9 million rupees, slightly improved from the previous year's loss of 1,511.1 million rupees. However, the loss before levy and income tax increased to 2,242.3 million rupees, compared to 2,062.1 million rupees during the same period last year. The loss after income tax for the period was 2,033.7 million rupees, which is a moderate move compared to the previous year's loss of 2,421.9 million rupees.
The Sugar Division of Shakarganj Limited, which faced a very large or significant move in reduced sugar production, crushed 498,014 metric tons of sugarcane, a notable decrease from the 778,454 metric tons crushed in the corresponding period last year. The division's revenue decreased with a gross loss of 23.92% compared to the previous year's 13.92%.
The Biofuel Division experienced increased production, producing 4.76 million liters, more than doubling the output from the previous year. This division recorded a gross loss of 141 million rupees, a big move from the previous year's loss of 368 million rupees. However, despite increased production, no substantial improvement is expected for the remainder of fiscal 2025.
The Textile Division remained inactive due to unfavorable economic conditions, continuing its non-production status from the previous year.
According to information available from the Pakistan Stock Exchange (PSX), Shakarganj Limited has been included in the Non-Compliant List due to its current liabilities exceeding its current assets by 6,607.31 million rupees. The company has expressed commitment to improving its liquidity situation and has outlined various steps to overcome the financial crunch in its interim financial statements.
Consolidated financial performance also showed an operating loss before other income, finance costs, and taxation, amounting to 2,239.21 million rupees, reflecting a big move from last year's 1,591.87 million rupees. The consolidated loss after income tax reached 2,425.39 million rupees, compared to the previous year's 2,379.89 million rupees.
Despite the challenges, Shakarganj Limited's management remains optimistic about future prospects, aiming to sustain operations and improve financial resources. The company is hopeful that with rising demand, there will be improvements in the remaining part of the fiscal year. However, due to the short crushing season and high raw material costs, particularly in the textile sector, the company faces continued operational difficulties.
The company's balance sheet footing stood at 16,935.62 million rupees as of June 30, 2025, with total shareholders' funds decreasing to 4,740.43 million rupees from 6,752.60 million rupees as of September 30, 2024. On a consolidated basis, the balance sheet footing was 24,726.13 million rupees, down from 26,059.47 million rupees as of September 30, 2024. Total equity decreased to 5,952.68 million rupees from 8,341.54 million rupees as of September 30, 2024.
Despite the adverse conditions, Shakarganj Limited's management is determined to navigate the financial crisis and looks forward to continued support from stakeholders.