Karachi: Sardar Chemical Industries Limited has released its financial statements for the first quarter ended September 30, 2023. The company reports a notable increase in net sales, from PKR 65,563,000 in 2022 to PKR 150,041,000 in 2023, marking a 56% rise. This surge is attributed to a hike in the prices of finished products, spurred by increased costs in utilities, labor wages, transportation charges, and other market elements. Despite the higher sales in terms of Rupees, the quantity sold remained unchanged.
The financial report shows a transformation from a loss of PKR 1,379,000 before taxation in 2022 to a profit of PKR 44,814,000 in 2023. The profit after tax also experienced an upswing, moving from a loss of PKR 2,362,000 in the previous year to a profit of PKR 41,906,000 in the current year. This improvement is credited to the company's ability to purchase raw materials at cheaper rates and better exchange rates, while selling at newer, higher prices. However, it is noted that the company’s cost and expenditure increased by 36%, which is proportionate to the increase in sales.
The statement of financial position reveals that the company’s total equity and liabilities stood at PKR 376,757,148 as of September 30, 2023, compared to PKR 330,474,676 as of June 30, 2023. The share capital remained constant at PKR 60,000,000 with a share premium of PKR 30,000,000. The un-appropriated profit saw a significant rise from PKR 161,832,737 to PKR 203,739,149.
Looking at the non-current liabilities, the lease liabilities decreased from PKR 9,663,583 to PKR 8,760,796. The current liabilities experienced an increase, primarily due to an increase in creditors, accrued, and other liabilities, from PKR 16,497,429 to PKR 30,451,108.
In terms of assets, the company’s non-current assets saw a slight decrease, with property, plant, and equipment values moving from PKR 29,880,529 to PKR 28,771,542. The long-term deposits remained constant at PKR 5,289,430.
The cash flow statement shows a net increase in cash and cash equivalents of PKR 25,819,490 for the period ending September 30, 2023, compared to a decrease of PKR 6,009,829 for the same period in the previous year.
The company’s directors emphasize that the annexed notes form an integral part of these financial statements. The increase in sales and profit marks a positive turnaround for Sardar Chemical Industries Limited, providing a strong start to the fiscal year.