Tariq Corporation Limited Reports Significant Financial Changes Amidst Sugarcane Cost Hikes

Karachi, The directors of Tariq Corporation Limited have presented the financial results for the half-year ending March 31, 2024. According to information available from the Pakistan Stock Exchange (PSX), the company reported a net loss after taxation of Rs. 490,885,021, compared to a profit of Rs. 8,317,262 in the corresponding period last year.

The company crushed 570,050 metric tons of sugarcane and produced 58,183 metric tons of sugar, reflecting a sugar recovery rate of 10.21%. This is a decrease from the previous year’s figures where 616,378 metric tons of sugarcane were processed resulting in 60,120 metric tons of sugar at a recovery rate of 9.76%. The financial data reveals a substantial increase in net sales reaching Rs. 7,747,523,842, more than doubling from Rs. 4,644,504,356 in the prior year. However, the company faced a gross loss of Rs. 311,973,089 as opposed to a gross profit of Rs. 99,475,191 last year.

The report highlights the impact of increased sugarcane costs driven by governmental policies in Punjab and other provinces, which have raised the minimum support price of sugarcane to Rs. 400 per Maund, with market prices rising above Rs. 550 per Maund. The company’s operational duration for the season was 102 days, approximately 5% longer than the previous year.

Amidst these challenges, Tariq Corporation Limited anticipates a stabilization in sugar market prices in the upcoming months, with an expected increase in national sugar demand and sugarcane cultivation. The management plans to dispose of non-core assets to improve liquidity and focus on reducing financial costs, in response to the current economic conditions.