Lahore: Tariq Corporation Limited has reported a notable improvement in its financial performance for the half-year ending on March 31, 2025, according to the company's directors' report. The company recorded a profit after tax of Rs. 33.47 million, a stark contrast to the loss after tax of Rs. 490.89 million reported in the same period last year.

The increase in profitability is attributed to several factors, including a reduction in sugar production this year, which led to a rally in sugar prices. The company crushed 662,775 metric tons of sugarcane, resulting in 57,237 metric tons of sugar production with a recovery rate of 8.65%. In comparison, last year, the company crushed 570,050 metric tons of sugarcane and produced 58,183 metric tons of sugar at a recovery rate of 10.21%.

The financial results reflect a revenue increase to Rs. 8.75 billion from the previous year's Rs. 7.75 billion. The directors noted that although the government of Punjab did not set an approved price floor for sugarcane, market prices fluctuated between Rs. 375 and Rs. 550 per Maund, prompting mills to purchase sugarcane at higher costs than the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's operating and finance costs amounted to Rs. 313.91 million, compared to Rs. 325.76 million in the previous year. The company is optimistic about its future outlook, anticipating a stabilization of sugar prices in the coming months and projecting a 10% increase in sugarcane cultivation for the next year.

To further strengthen its financial position, the company plans to dispose of non-core assets, including non-operational land and excess machinery, to generate liquidity. This strategic move aims to reduce financial costs and enhance the company's cash flow, allowing for reinvestment in core business operations.

Despite the challenges posed by fluctuating sugarcane costs, the directors expressed gratitude toward government partners, financial institutions, and stakeholders for their continued support. They also acknowledged the dedication and hard work of the company's employees and sugarcane growers, emphasizing their pivotal role in the company's growth and success.