Karachi: The Board of Directors of Sitara Peroxide Limited has released a report detailing the company's financial performance for the half year ending December 31, 2023. The report highlights a reduction in net sales, attributable to a plant shutdown, and outlines the company's ongoing efforts to become debt-free.
In the half-year period ending December 31, 2023, Sitara Peroxide Limited reported net sales of Rs. 14.90 million, a significant decrease from Rs. 385.74 million reported in the same period of the previous year. The decline in sales is primarily due to the company's decision to shut down its plant, which is part of a strategic move to eliminate debt and undergo necessary modernization and replacement efforts.
Despite this reduction in sales, the company managed to lower its gross loss to Rs. 77.49 million, down from Rs. 112.86 million in the previous year. The loss for the current half-year, after tax, stood at Rs. 76.37 million, showing improvement from the Rs. 220.06 million loss recorded in the corresponding half-year of 2022. Loss per share also decreased significantly to Rs. 1.39 from Rs. 3.99.
According to information available from the Pakistan Stock Exchange (PSX), Sitara Peroxide Limited has successfully rescheduled its Sukuk Facility of Rs. 167.16 million as of December 29, 2023. This restructuring includes a waiver of Rs. 296.70 million after full and final adjustment, marking a step forward in the company's journey towards debt elimination and reduced finance costs.
Looking ahead, the management of Sitara Peroxide Limited is navigating Pakistan's challenging economic landscape with caution, focusing on safeguarding stakeholder interests. The company is confident that its planned balancing, modernization, and replacement (BMR) initiative will enhance its production capacity from 30,000 to 40,000 tons per annum, improving both yield and efficiency. Active negotiations are underway with technology and machinery suppliers, supported by advance payments.
The Board of Directors expressed gratitude to all stakeholders for their continued support and cooperation, emphasizing their commitment to overcoming future challenges.