Lahore: Ansari Sugar Mills Limited has released its financial results for the period ending June 30, 2023, reporting significant increases in losses compared to the previous year. According to information available from the Pakistan Stock Exchange (PSX), the company has experienced challenges reflected in the sharp rise in its financial costs and operating expenses.

The financial statements reveal that net sales for the quarter ended June 30, 2023, were PKR 127.54 million, with the nine-month period sales reaching PKR 379.99 million. Despite these revenues, the cost of sales significantly impacted the gross profit, which stood at PKR 21.89 million for the quarter and PKR 94.88 million for the nine-month period.

Operating expenses, particularly administrative costs, saw a considerable increase from PKR 12.99 million in the previous year to PKR 15.99 million in 2023 for the quarter. This escalation in expenses has contributed to the operating losses, with the company posting a loss before taxation of PKR 261.56 million for the quarter and PKR 617.76 million for the nine-month period, marking a drastic increase from the previous year's figures.

Finance costs have also surged, reaching PKR 266.68 million for the quarter and PKR 674.68 million for the nine-month period, significantly higher than the previous year. This rise in finance costs is a primary driver of the increased losses, overshadowing the modest tax relief observed during the period.

The loss per share has widened from PKR 2.45 in the second quarter of 2022 to PKR 4.08 in 2023, and from PKR 1.98 to PKR 9.36 for the nine-month period, reflecting the deteriorating financial health of the company.

This financial downturn poses serious challenges for Ansari Sugar Mills as it navigates a difficult economic environment characterized by high operational costs and financial burdens.