Karachi: Faran Sugar Mills Limited disclosed substantial losses in its financial results for the nine months and quarter ending June 30, 2024. The company, in a board meeting on July 25, 2024, confirmed a loss after taxation of Rs. 1.1 billion for the nine-month period, contrasting sharply with a profit of Rs. 696.3 million reported in the same period last year.

According to information available from the Pakistan Stock Exchange (PSX), turnover for the nine months increased to Rs. 7.92 billion from Rs. 6.28 billion in the previous year. However, the cost of sales also rose significantly, leading to a gross profit of Rs. 647.8 million, marginally higher than the previous year's Rs. 644.9 million.

For the quarter ended June 2024, the company also reported a downturn with a loss after taxation of Rs. 645.6 million, a reversal from a profit of Rs. 305.3 million in the corresponding quarter last year. This decline was largely attributed to increased finance costs, which more than doubled from Rs. 236.5 million in the June 2023 quarter to Rs. 482.4 million in June 2024.

The operational profits were unable to offset the substantial finance costs, which eroded the gains from other income and operational efficiency. Other income for the nine-month period declined significantly to Rs. 57.5 million from Rs. 260.6 million in the previous year, further impacting the financial health of the company.

Faran Sugar Mills announced no cash dividends, bonus issues, or rights issues, reflecting the company's strategy to stabilize its financial position amidst challenging market conditions. The detailed financial statements, including losses and earnings per share, which dropped from Rs. 27.84 to a loss of Rs. 43.98 per share for the nine-month period, have been transmitted through PUCARS for stakeholders' review.

The company's management remains focused on navigating these financial challenges, with strategic measures to mitigate the impact of rising costs and finance expenses on its profitability.