Karachi: Khairpur Sugar Mills Limited has announced its financial results for the third quarter ending June 30, 2025. The company's profit before taxation registered a Big move downwards to 215.68 million rupees, compared to 319.87 million rupees for the same period last year. This decrease is attributed to increased input costs and fluctuating recovery rates. After accounting for taxation, the profit after taxation was 101.97 million rupees, a Big move from the previous year's 171.01 million rupees. Earnings per share saw a Big move, dropping to 6.37 rupees from 10.69 rupees last year.
According to information available from the Pakistan Stock Exchange (PSX), the operating profit for Khairpur Sugar Mills Limited stood at 499.07 million rupees, reflecting a Big move from the previous year's 667.94 million rupees. Despite the challenges, the company managed to maintain a positive gross profit margin. The company's directors attribute these financial results to the absence of official sugarcane procurement prices and lower sucrose content in the sugarcane, leading to higher production costs.
The crushing season for 2024-25 commenced on November 21, 2024, and concluded on March 10, 2025, lasting 110 days. The company crushed 740,684 metric tons of sugarcane and produced 71,476 metric tons of sugar, reflecting a Very large or significant move decrease in production from the previous year. Molasses production, however, saw a Moderate move increase to 37,346 metric tons.
Khairpur Sugar Mills Limited remains optimistic about the future, with expectations of stability in sugar prices and a reduction in finance costs due to declining KIBOR rates. These factors, coupled with an anticipated rise in sugar sale prices, are expected to support profitability in the upcoming financial year.
In light of the current financial performance, the Board has decided not to declare any dividends for the third quarter, choosing instead to focus on prudent financial management. Additionally, the company has made significant strides in environmental sustainability by installing a wastewater treatment plant, reducing water usage, and enhancing drainage systems in compliance with the Sindh Environmental Protection Act, 2013.
Khairpur Sugar Mills Limited continues to engage in corporate social responsibility initiatives, focusing on education, healthcare, community infrastructure, and welfare. The company also upholds corporate governance standards, with a board comprising seven directors, including two female directors, and several committees to oversee various operational aspects.
The company expresses gratitude to its stakeholders and remains committed to achieving sustainable growth and enhancing shareholder value.