Mirpurkhas Sugar Mills Reports Loss in Second Quarter Despite Rising Turnover

Karachi: Financial results released for Mirpurkhas Sugar Mills Limited for the period ended June 30, 2024, reveal a significant loss in profit after taxation despite an increase in turnover. The quarterly financial disclosure, transmitted through the Pakistan Stock Exchange (PSX), shows a complex fiscal landscape with higher costs impacting the bottom line.

In the period ended June 30, 2024, Mirpurkhas Sugar Mills experienced a more than doubling in turnover to 9.02 billion rupees from 4.87 billion rupees in the same period last year. However, this did not translate into profitability due to a sharp rise in cost of sales and finance costs. The cost of sales escalated to 8.02 billion rupees, up from 4.16 billion rupees year-over-year, significantly squeezing the gross profit margin.

Operating profit for the quarter stood at 584.32 million rupees, a decrease from 778.51 million rupees in the corresponding quarter of 2023. This was further compounded by finance costs, which more than doubled to 1.42 billion rupees from 775.57 million rupees, resulting in a net loss before taxation of 1.19 billion rupees.

According to information available from the Pakistan Stock Exchange (PSX), the board of directors of Mirpurkhas Sugar Mills has recommended no dividends, bonus shares, or rights shares for the shareholders, reflecting the company’s conservative stance amidst financial strain. Other income for the quarter was recorded at 43.46 million rupees, a significant decrease compared to 480.99 million rupees in the previous year, adding to the financial challenges.

The loss after taxation deepened to 1.11 billion rupees, contrasting sharply with a profit of 625.10 million rupees in the same period last year. This drastic reversal is further illustrated by the earnings per share, which shifted from a profit of 9.39 rupees to a loss of 16.72 rupees per share.

The company’s quarterly report, which has been submitted separately through PUCARS within the specified timeframe, does not forecast any immediate relief, indicating ongoing financial hurdles for Mirpurkhas Sugar Mills in the upcoming quarters.