Karachi: Khairpur Sugar Mills Limited has reported remarkable financial and operational achievements for the fiscal year ending September 30, 2024, as detailed in the Chairman’s Review Report. Despite a challenging market environment, the company demonstrated resilience and strategic acumen, driving substantial growth in profitability and operational efficiency.
According to the financial highlights, Khairpur Sugar Mills achieved a profit before taxation of Rs. 258.20 million, a significant increase from the Rs. 113.46 million recorded in the previous year. The profit after taxation rose to Rs. 59.83 million, translating to an earnings per share of Rs. 3.74, up from Rs. 1.08 the prior year. This performance underscores a robust financial position, enhancing shareholder value.
Operationally, the crushing season for 2023-24, spanning from November 16, 2023, to March 09, 2024, saw the company crush 831,344.08 metric tonnes (MT) of sugarcane, yielding 89,731 MT of sugar with an impressive recovery rate of 10.79%. This represents a considerable improvement compared to the previous season’s 483,067.94 MT crushed and 48,635 MT of sugar produced, with a recovery rate of 10.07%.
Despite intensified competition and an increase in government-mandated sugarcane prices, Khairpur Sugar Mills maintained profitability through strategic decision-making and operational efficiency. However, rising procurement costs and elevated policy rates affected overall profitability. According to information available from the Pakistan Stock Exchange (PSX), the company managed to export 1,250 MT of sugar at above-average rates before the balance sheet date, further boosting profitability. The installation of a falling film evaporator also allowed the company to save significantly by selling excess quantities of bagasse.
The company’s commitment to sustainability and environmental responsibility is evident through the installation of a wastewater treatment facility, aligning with the Sindh Environmental Policy Act 2013. The facility, with a capacity of 3,000 cm/day, allows for the reuse of treated water in agriculture, addressing water scarcity and reducing pollution.
In terms of corporate social responsibility, Khairpur Sugar Mills continues to support local communities through initiatives in education, healthcare, and infrastructure development. The company remains dedicated to social welfare, reflecting its commitment to community development.
The governance structure of Khairpur Sugar Mills is robust, with a diversified Board of Directors providing strategic guidance. The Audit and HR Committees play vital roles in overseeing financial integrity and human resource policies, ensuring the company’s alignment with shareholder interests and long-term growth objectives.
Despite facing challenges such as political instability and inconsistent economic policies, the company benefitted from rising domestic sugar prices, which partially mitigated these issues. The year concluded on a profitable note, indicating a positive outlook for continued growth.
The Chairman expressed gratitude to shareholders, the Board of Directors, management, employees, customers, suppliers, and government authorities for their unwavering support. As Khairpur Sugar Mills moves forward, the focus remains on innovation, operational excellence, and sustainable growth, aiming to enhance value for all stakeholders while contributing to Pakistan’s economic and social progress.