Lahore: In an un-audited financial statement for the nine-month period ending June 30, 2025, Shahtaj Sugar Mills Limited reported a decrease in net profit and sugar production compared to the previous year. The company recorded a turnover of Rs. 7,078.156 million, a Big move down from Rs. 7,358.442 million in the corresponding period of 2024.
The company's directors attributed the decline in production to unusual high temperatures and below-normal rainfall, which adversely affected sugarcane yield. The crushing season saw 591,293 metric tons of sugarcane processed, resulting in the production of 53,681 metric tons of sugar, marking a Big move decline from the 67,793 metric tons produced in the previous season. The reduced availability of sugarcane also led to a lower sucrose content, with recovery rates falling to 9.10% from 9.97% last year. In contrast, molasses recovery improved during this period.
According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share for the nine-month period fell to Rs. 0.79 from Rs. 4.02 in 2024, marking a Very large or significant move decline. The net profit for the period was recorded at Rs. 9.545 million, a Very large or significant move decrease from Rs. 48.249 million in the previous year. Despite a decrease in sugarcane purchase costs, increased overheads and lower quantitative sales contributed to the decline in profitability.
For the three-month period ended June 30, 2025, Shahtaj Sugar Mills posted a turnover of Rs. 2,121.714 million, a Moderate move decrease from Rs. 2,285.718 million in the corresponding period of the previous year. However, the company managed to secure a net profit of Rs. 48.877 million, a Very large or significant move increase from a loss of Rs. 150.134 million in the same period last year. This improvement was attributed to an increase in sugar prices during the quarter.
On a positive note, the company's power project, a 32 MW bagasse-based co-generation initiative, has made significant progress. Regulatory approvals, the execution of the Energy Purchase Agreement, and the achievement of financial closure have been accomplished. However, the Commercial Operation Date has been delayed due to technical issues, which are being addressed to enable operations at the earliest possible time.
Looking ahead, Shahtaj Sugar Mills is optimistic about the upcoming crushing season, with favorable weather conditions expected to improve sugarcane yield. The company's field staff is actively encouraging growers to utilize quality seeds and fertilizers to ensure a better crop yield.