Lahore: Baba Farid Sugar Mills Limited has released its financial results for the quarter ending December 31, 2024, revealing notable shifts in cash flows and asset management. The financial data, as per Notice No. PSX/N-79 dated January 10, 2025, provides insight into operational efficiencies and challenges faced by the company in the last quarter of 2024.
The company reported a profit before levy of 29.54 million rupees, a drastic decrease from the 173.87 million rupees recorded in the same period of 2023. This reduction highlights the pressures faced by the company amidst fluctuating market conditions. The adjustments for items not involving movement of funds included depreciation costs of 26.74 million rupees and financial charges amounting to 121.18 million rupees, both of which contributed to a net cash flow before working capital changes of 177.46 million rupees, compared to 257.44 million rupees in the previous year.
A significant element of the financial report is the decrease in current assets. The stock in trade saw a substantial increase in value, reaching 1.26 billion rupees, up from 1.23 billion rupees in 2023. Trade debts also rose to 197.58 million rupees, a sharp increase from the previous 13.79 million rupees. However, loans and advances increased to 205.14 million rupees from 116.25 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), the financial results showed an increase in trade and other payables, which now stand at 1.10 billion rupees, compared to 503.84 million rupees in 2023. This increase in liabilities reflects the company's strategy to manage its short-term financial commitments amidst challenging market conditions.
The statement of cash flows for the quarter indicates cash used in operations at 88.28 million rupees, a betterment from the cash used of 359.75 million rupees in the previous year. Despite this, the taxes paid increased to 27.75 million rupees, and financial charges paid were significantly higher at 178.58 million rupees compared to 60.78 million rupees in 2023.
In terms of investing activities, the company recorded a net cash used of 478.06 million rupees, primarily driven by additions to operating fixed assets and short-term investments totaling 451.39 million rupees.
The financing activities of Baba Farid Sugar Mills Limited during this period resulted in net cash generated of 865.17 million rupees, a decrease from 1.29 billion rupees in 2023. This was largely due to short-term borrowings, which amounted to 944.44 million rupees.
Overall, the financial results for the quarter ended December 31, 2024, show a net increase in cash and cash equivalents to 175.98 million rupees, compared to 356.19 million rupees at the end of the same period in 2023. The company continues to navigate through a complex market environment, focusing on maintaining operational stability and strategic financial management.