Karachi: Sakrand Sugar Mills Limited announced its financial results for the quarter ending December 31, 2024, revealing a significant turnaround in its profitability. The Board of Directors, during their meeting on January 30, 2025, approved the unaudited condensed interim financial statements. Despite economic challenges, the company managed to achieve notable financial improvements over the same period last year.
The company's net sales surged to 1.39 billion rupees, marking a substantial increase from the 1.08 billion rupees recorded in the corresponding quarter of the previous year. This 29% growth in sales contributed to a gross profit of 157.30 million rupees, a stark contrast to the gross loss of 62.80 million rupees in the comparable period of 2023.
Operating expenses saw a slight decrease, with administrative expenses and selling costs totaling 45.77 million rupees, compared to 49.25 million rupees last year. Consequently, Sakrand Sugar Mills reported an operating profit of 111.53 million rupees, reversing the operating loss of 112.05 million rupees recorded in 2023.
According to information available from Pakistan Stock Exchange (PSX), the company’s finance costs decreased marginally to 13.02 million rupees from 13.46 million rupees in the previous year. Other income was recorded at 192,000 rupees, further boosting the profit before taxation to 98.70 million rupees, a remarkable recovery from a loss of 125.51 million rupees in the same period last year.
After accounting for taxation of 15.72 million rupees, the profit after taxation stood at 82.98 million rupees, translating into an earning per share of 1.86 rupees. This represents a significant improvement when compared to the loss of 139.00 million rupees and an earnings per share of negative 3.12 rupees in the previous year.
In terms of cash flow, the company generated a net cash inflow of 54.42 million rupees from operating activities, although it faced cash outflows from investing and financing activities amounting to 26.06 million rupees and 26.91 million rupees, respectively. This resulted in a marginal increase in cash and cash equivalents, which stood at 57.11 million rupees at the end of the period.
The financial results indicate a positive shift in the company's performance, with the total equity showing a modest improvement. The balance as of December 31, 2024, reflects a comprehensive income gain of 82.98 million rupees and a transfer from the revaluation surplus, bringing the total equity to 833.59 million rupees compared to 750.61 million rupees as of October 1, 2024.
Despite the improved financial performance, the company declared no cash dividend, bonus shares, or any other entitlements for the quarter. The unaudited condensed interim financial statements will be transmitted through PUCARS separately, in compliance with the specified time.
Sakrand Sugar Mills Limited operates in the designated market category of the Pakistan Stock Exchange, where it is striving to enhance shareholder value by efficiently managing its resources and improving profitability. The company's strategic focus on cost control and operational efficiency has played a pivotal role in achieving these financial results.