Karachi: Shahmurad Sugar Mills Limited, in its Board of Directors meeting held on January 27, 2025, has announced its financial results for the first quarter ended December 31, 2024. The company reported a significant decline in profit after tax, dropping from 966.55 million to 142.70 million compared to the same period last year. This reflects a sharp decrease in earnings per share, which fell from 45.77 to 6.76.

The board has decided not to issue any cash dividends, bonus shares, or right shares for this period. Additionally, the election of directors is scheduled for March 25, 2025, at an Extraordinary General Meeting (EOGM) of Members to be held at Shahmurad Sugar Mills' registered office. The board has fixed the number of directors at seven for the next three years. The shares transfer books will be closed from March 15 to March 25, 2025, for the election process.

The financial summary reveals a decline in sales from 6.99 billion to 5.90 billion. Cost of sales slightly decreased from 5.65 billion to 5.47 billion, resulting in a gross profit of 430.81 million, a significant drop from 1.35 billion in the previous year. Other income also declined substantially from 309.29 million to 145.06 million, while finance costs decreased from 227.93 million to 190.42 million.

Administrative expenses saw a slight reduction from 122.03 million to 117.34 million, whereas distribution costs rose from 35.04 million to 53.03 million. Other operating charges decreased from 91.36 million to 16.09 million. Profit from trading activities increased marginally, reaching 3.70 million from 1.19 million.

According to information available from the Pakistan Stock Exchange (PSX), the company's profit before levies and income tax stood at 202.69 million, down from 1.18 billion. After accounting for levies of 8.12 million and an income tax of 51.87 million, the profit before tax was 194.57 million, a significant reduction from 1.01 billion in the previous year.

The company's quarterly report for the period ended December 31, 2024, will be disseminated through the Pakistan Unified Corporate Action Reporting System (PUCARS) within the specified timeframe. This report will provide further insights into the company's financial performance and strategic direction amidst the challenges faced in the first quarter.