Karachi: Burshane LPG (Pakistan) Limited has reported a substantial decline in its net sales and gross margins for the period ending March 31, 2025, amidst ongoing financial restructuring and legal challenges. The company's sales volume fell by 45.32% to 5,740 metric tons, resulting in a 44.73% decrease in net sales to Rs. 1,172.66 million. This decline has been attributed to a reduced local LPG quota and increased prices of imported LPG.
The company's gross margins also saw a significant drop to Rs. 43.09 million, a reduction of Rs. 66.16 million from the previous year's comparable period. Administrative expenses decreased by Rs. 9.70 million, largely due to reduced litigation expenses, while distribution and marketing expenses fell by Rs. 4.76 million. Financial costs were cut by Rs. 10.68 million, benefiting from lower KIBOR rates. However, the company’s loss before tax increased to Rs. 57.50 million, up by Rs. 33.69 million compared to the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the company's loss per share for the reviewed period stood at Rs. 2.69, compared to Rs. 1.17 in the preceding period. These figures highlight the financial challenges faced by the company.
In a bid to manage its financial obligations, Burshane LPG accepted a revised loan restructuring proposal from the National Bank of Pakistan (NBP) on January 6, 2022. This restructuring converted the remaining outstanding loan of Rs. 154 million into a running finance facility. The company made a principal down payment of Rs. 25.44 million for Demand Finance - I, with a balance of Rs. 75 million to be repaid in 20 quarterly installments beginning September 30, 2022. A similar structure was followed for Demand Finance - II, with a principal down payment of Rs. 10.59 million and a remaining balance of Rs. 95.29 million.
Burshane LPG has been embroiled in legal proceedings since a tax evasion complaint was filed by the Directorate of Investigation and Intelligence (Inland Revenue) on August 31, 2020, alleging evasion of approximately Rs. 1.7 billion. The Special Court for Customs, Taxation, and Anti-Smuggling issued orders to freeze nine bank accounts and arrest certain directors. These orders were contested, resulting in the lifting of the account freeze after 90 days. The company also challenged the tax liability demands of Rs. 609.79 million and Rs. 617.30 million for 2018 and 2019, with the matter now on appeal before the Appellate Tribunal.
The board of directors, composed of seven males and one female, remains focused on sustainable development and upholding business ethics. The directors emphasize the company's commitment to health, safety, security, and environmental standards, with no recorded injuries or fatalities.
Burshane LPG continues to face financial hurdles, yet it remains dedicated to enhancing its market share and profitability. The company's management expresses confidence in its long-term corporate plans to increase business value, while navigating the complexities of the financial and legal challenges it currently faces.