Sindh Abadgar Sugar Mills : Transmission of Quarterly Report for the Period Ended 30th June 2023

UNAUDITED

CONDENSED INTERIM FINANCIAL INFORMATION

FOR THE NINE MONTHS PERIOD ENDED JUNE 30, 2023

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COMPANY PROFILE

DIRECTORS	Mr. Deoo Mal Essarani	Chairman
	Dr. Tara Chand Essarani	Chief Executive
	Mr. Mahesh Kumar	Director
	Mr. Dileep Kumar	Director
	Mr. Pehlaj Rai	Director
	Mr. Mohan Lal	Director
	Dr. Besham Kumar	Director
	Mr. Muhammad Siddiq Khokhar	Independent Director
	Mr. Zafar Ahmed Ghori	Independent Director
	Ms. Maheshwari Osha	Independent Director
CHIEF FINANCIAL OFFICER	Mr. Saqib Ghaffar
COMPANY SECRETARY	Mr. Aziz Ahmed
BANKERS	Allied Bank Limited
	Askari Bank Limited
	Bank Al-Falah Limited
	MCB Bank Limited
	Bank AL Habib Limited
	United Bank Limited
	Meezan Bank Limited
	HBL Foreign Exch. Bank Limited
AUDIT COMMITTEE	Mr. Zafar Ahmed Ghori	Chairman
	Mr. Pehlaj Rai	Member
	Mr. Dileep Kumar	Member
	Dr. Besham Kumar	Member
HR AND REMUNERATION	Ms. Maheshwari Osha	Chairman
COMMITTEE	Mr. Mohan Lal	Member
	Mr. Dileep Kumar	Member
AUDITORS	M/s. Rahman Sarfaraz Rahim Iqbal Rafiq
	Chartered Accountants
REGISTERED OFFICE	209, 2nd Floor, Progressive Plaza, Beaumont Road,
	Karachi-Pakistan.
MILLS	Deh: Deenpur,
	Taluka. Bulri Shah Karim,
	Distt. Tando Muhammad Khan,
	Sindh-73024.
REGISTRAR	JWAFFS Registrar Services (Pvt) Ltd.
	407- 408, Al Ameera Centre,
	Shahrah e Iraq, Saddar, Karachi.
EMAIL ADDRESS	[e-mail]

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DIRECTORS' REPORT

Dear Shareholders,

Assalam-o-Alaikum,

On behalf of the Board of Directors of the Company. We are pleased to present before you the un-audited financial statements for the 3rd quarter ended 30th June, 2023.

Financial Results

The financial results of the Company for the nine months period ended 30th June, 2023 with comparison to the corresponding period of the last year is presented here under;

	30th June, 2023	30th June, 2022
	Rs. (000)	Rs. (000)
Profit (Loss) before taxation	49,953	82,520
Taxation	(16,914)	(19,777)
Profit (Loss) after taxation	33,039	62,744
Earning per share Rs.	3.17	6.02

During the nine months period, sales achieved was Rs. 2,827 M compared to Rs. 1,900 M of the last year showing a growth of 49% attributed to increase in sales volume by 56% from 22,966 MT in the corresponding period to 35,812 MT. The selling price, however, remained depressed by 5%, which has slightly reduced the gross margin to 14% compared to 15% in the comparable period. The financial cost remained a constant thorn in achieving a sustainable profitability which went up by 57% to Rs. 302 M compared to Rs. 192 M in the corresponding period resultantly the profit after tax declined to Rs. 33 M during the period compared to Rs. 63 M achieved in the comparable period. Accordingly, the earning per share stood at Rs. 3.17 per share compared to Rs. 6.02 in the corresponding period.

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Future Outlook

The sugarcane crop production for the next crushing season is anticipated to be lower amid reduction in sowing area affected by flood and switching to lucrative crop by the growers ultimately less sugar production is forecasted in the ensuing year which is why the sugar price has started climbing in the local market coupled with worries about short fall in the global supplies, triggered by lower than expected sugar production. However, the price is still lower than our neighboring countries i.e. Iran and Afghanistan. The Sindh government has proposed to fix the rate of sugarcane at Rs. 450/- per 40kgs for the next crushing season. In case the proposal has been approved, it will result in the sugar price crossing over Rs.150/- per kg mark. The government is persistently increasing the support price of sugarcane to shelter the growers from high inflation cost, whereas, on the other hand the sugar industry is bearing the brunt of the frequent rise in markup rates, sales tax, minimum wages and above all spiraling inflation which the country has been witnessing since the last three years.

With the revival of IMF program, the input cost of production is tend to further increase as the government has imposed new taxes to bridge the gap of fiscal deficit. To mitigate the adverse impact, the company is continuously taking austerity measures, revamping the production process and reviewing its business strategies to remain vigil in line with the changing market dynamics and sustainability of the company.

Acknowledgement

The Board acknowledges the cooperation extended by the shareholders, growers, banks and customers and appreciates the staff and workers who worked with devotion to strengthen the company.

______________	______________
Tara Chand	Mahesh Kumar
Chief Executive	Director
Dated: 26th July, 2023

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57%

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