AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Ansari Sugar Mills Ltd. has released its financial results for the third quarter ended June 30, 2023, detailing significant financial challenges alongside strategic efforts to navigate ongoing fiscal obstacles.
According to information available from the Pakistan Stock Exchange (PSX), the company reported a pre-tax loss of PKR 617.76 million for the quarter, a substantial increase from the PKR 187.86 million loss recorded in the same period the previous year. Gross profits similarly reflected a downturn, falling from PKR 262.10 million in 2022 to PKR 94.88 million in 2023. These results come despite a decrease in sales from PKR 967.21 million in 2022 to PKR 379.99 million in 2023.
The financial turmoil coincides with legal and operational disruptions, including an inquiry initiated by the Federal Investigation Agency (FIA) and subsequent actions by the National Accountability Bureau (NAB) which led to the freezing of the company’s bank accounts. This action severely restricted the company’s access to funds and banking facilities, impacting its ability to meet financial obligations such as bank installments and payments to growers and vendors.
Despite these challenges, Ansari Sugar Mills has taken several strategic steps to ensure its continued operation and long-term viability. This includes the implementation of Balancing, Modernization, and Replacement (BMR) to improve energy efficiency and revenue through by-products like bagasse and molasses. Furthermore, the company is engaged in proactive negotiations to restructure its debts, aiming to alleviate the pressures of immediate stock sales during the crushing season.
The board of Ansari Sugar Mills expressed gratitude towards its employees for their dedication and resilience during these challenging times. With the unfreezing of its bank accounts following amendments to the NAB Ordinance, the company is coordinating with stakeholders to amicably resolve debts and other liabilities, looking towards a hopeful recovery in the sugar industry.