Karachi: Ansari Sugar Mills Ltd has reported a significant financial turnaround for the half year ending March 31, 2025. The company announced a net profit after tax of PKR 101 million, a substantial improvement from the net loss of PKR 355.2 million recorded in the corresponding period last year.
According to the financial statements released, the company's sales surged to PKR 1,445.50 million from PKR 517.49 million in the previous year. This marks a very large or significant move in sales figures. Gross profit also experienced a very large or significant move, increasing to PKR 491.33 million from PKR 141.90 million. Pre-tax profit reached PKR 66.25 million, contrasting with a loss of PKR 421.54 million during the same period last year.
The company attributes its financial recovery to the commencement of crushing operations on November 20, 2024, despite the absence of a government-announced support price for sugarcane. Ansari Sugar Mills procured sugarcane at prices ranging from PKR 425 to PKR 435 per 40 kg. The crushing season saw the mill process 150,685 metric tons of sugarcane, producing 13,109 metric tons of sugar.
However, Ansari Sugar Mills faced significant challenges due to an inquiry initiated by the Federal Investigation Agency (FIA) and subsequently handled by the National Accountability Bureau (NAB). The inquiry led to the blocking of the company's bank accounts, resulting in financial constraints. Despite these obstacles, the Supreme Court of Pakistan intervened, and no charges were established against the company. The accounts have since been unfrozen, allowing Ansari Sugar Mills to resume normal operations.
According to information available from the Pakistan Stock Exchange (PSX), Ansari Sugar Mills remains optimistic about future prospects, with plans to diversify revenue streams and enhance energy efficiency. The company aims to improve the sale of by-products such as bagasse and molasses. It also anticipates a favorable sugarcane supply and is negotiating with bankers to restructure debts, which will strengthen its financial standing.
The company is hopeful for timely export permissions from the Federal government, which could stabilize the local market and maximize profits. Ansari Sugar Mills predicts a promising outlook for the sugar industry, with expectations of increased production and an export surplus.
As the company navigates through its challenges, it expresses gratitude to its employees and stakeholders for their support and dedication, which have been instrumental in overcoming the financial and operational hurdles faced over the past years.