Karachi: Khairpur Sugar Mills Limited, a prominent entity in the sugar manufacturing sector, has announced its financial results for the quarter ending December 31, 2024, revealing a significant decline in profits compared to the previous year. The company, which is listed on the Pakistan Stock Exchange (PSX), continues to maintain its compliance with corporate governance regulations, as detailed in its recent financial disclosures.
As of December 31, 2024, Khairpur Sugar Mills reported a net profit of 22.95 million rupees, a stark decrease from the 127.53 million rupees recorded in the corresponding quarter of the previous year. This drop in profitability is attributed to a decrease in sales revenue, which fell from 3.16 billion rupees to 2.21 billion rupees, alongside a reduction in operating profit from 350.64 million rupees to 155.90 million rupees.
The company's board of directors comprises seven members, including five male and two female directors. The board's composition features a blend of independent, non-executive, and executive directors, with Mr. Asif Khan Brohi and Mr. Ghulam Nabi Memon Morai serving as independent directors. The board has established several committees, including the Audit Committee, Human Resource and Remuneration Committee, Nomination Committee, and Risk Management Committee, with Mr. Asif Khan Brohi serving as chairman/member across these committees.
In terms of assets, Khairpur Sugar Mills saw an increase in total assets to 9.52 billion rupees as of December 31, 2024, compared to 8.79 billion rupees on September 30, 2024. Non-current assets, including property, plant, and equipment, were valued at 4.93 billion rupees, while current assets increased to 4.58 billion rupees, primarily driven by an increase in stock in trade and loans and advances.
The company's equity and liabilities structure showed a shareholder's equity amounting to 4.09 billion rupees, with non-current liabilities totaling 1.24 billion rupees and current liabilities at 4.20 billion rupees. The authorized share capital remains at 200.00 million rupees, with issued, subscribed, and paid-up capital at 160.18 million rupees.
Despite the challenging financial landscape, Khairpur Sugar Mills continues to acknowledge the support and dedication of its shareholders, employees, and stakeholders, which it deems instrumental in its ongoing progress and success. According to information available from Pakistan Stock Exchange (PSX), the company's operations are seasonal, typically running from November to March, which affects production costs and financial reflections during this period.
The company's cash flow from operating activities reported a net outflow of 256.75 million rupees, attributed to financial charges, taxes paid, and changes in working capital. However, cash generated from financing activities, primarily through proceeds from short and long-term borrowings, amounted to 268.75 million rupees, offsetting some operational cash flow challenges.
Khairpur Sugar Mills remains committed to adhering to approved accounting standards and continues to operate under the directives of the Companies Act 2017. These interim financial statements are part of the company's compliance with section 237 of the Companies Act and Pakistan Stock Exchange's listing regulations.