AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: Ansari Sugar Mills Ltd has released its financial results for the half-year ending March 31, 2023, along with a comprehensive report by its directors detailing both the performance challenges and strategic responses planned by the management.
The financials show a stark contrast between the current and previous fiscal periods. Sales plummeted from PKR 967.21 million in 2022 to PKR 252.45 million in 2023, with gross profit declining from PKR 262.10 million to PKR 67.93 million. The pre-tax loss substantially increased, from PKR 21.33 million in 2022 to PKR 361.28 million in 2023.
According to information available from the Pakistan Stock Exchange (PSX), these figures reflect a significant downturn in the company’s operations, attributed mainly to external legal and financial challenges. The sugar crushing season started on November 27, 2022, with the provincial government setting the cane price at PKR 302 per 40 kg. Despite a reduction in operational days from 84 in the previous season to 86 in the current season, sugar production halved from 13,392.5 metric tons to 6,693 metric tons.
The Directors’ Report highlighted several external issues impacting the company’s financial health. Notably, an investigation by the Federal Investigation Agency (FIA), followed by actions from the National Accountability Bureau (NAB), led to a blockage of the company’s bank accounts under allegations of illicit transactions, which were not upheld by a court of competent jurisdiction. This situation severely restricted the company’s financial operations, affecting its ability to meet financial obligations, including bank installments and payments to growers and vendors.
Despite these adversities, the company’s directors took personal initiatives to ensure operational continuity. Post-amendment of the NAB Ordinance, the company’s bank accounts were unfrozen, enabling it to coordinate with stakeholders to resolve debts and other liabilities.
Looking ahead, Ansari Sugar Mills is focusing on diversifying its revenue streams through better energy efficiency and the sale of by-products like bagasse and molasses. It also plans to engage more closely with farmers to ensure a sustainable supply of sugarcane, which is crucial for future operations.
The company anticipates a positive turn in the sugar industry and is preparing to maximize production in the coming seasons. This optimistic outlook is further supported by potential governmental policy changes allowing sugar exports, which could stabilize local markets and improve revenue.
In conclusion, while the current financial period has been challenging for Ansari Sugar Mills, the management remains committed to navigating these difficulties with strategic initiatives aimed at long-term growth and sustainability. The board expresses gratitude to all employees and stakeholders for their continued support and dedication during these challenging times.