Habib Sugar Mills LimitedPSX: HABSM

Transmission of Half Yearly Accounts-March 31, 2025

May 27, 2025 at 6:48 AM UTC · Issued by Habib Sugar Mills Limited

Habib Sugar Mills Limited

Report and Condensed Interim Financial Statements

for the Half Year ended March 31, 2025 (Unaudited)

Contents

Company Information 2

Directors' Report 3

Independent Auditors' Review Report 5

Condensed Interim Statement of Financial Position 6

Condensed Interim Statement of Profit or Loss 7

Condensed Interim Statement of Comprehensive Income 8

Condensed Interim Statement of Changes in Equity 9

Condensed Interim Statement of Cash Flows 10

Notes to the Condensed Interim Financial Statements 11

Company Information

Board of Directors Asghar D. Habib Chairman

Murtaza Habib Hasnain Habib

Farouq Habib Rahimtoola Sohail Hussain Haji

Muhammad Salman Husain Chawala Tyaba Muslim Habib

Khursheed A. Jamal Chief Executive

Audit Committee Farouq Habib Rahimtoola Chairman

Tyaba Muslim Habib Member

Sohail Hussain Haji Member

Human Resource & Tyaba Muslim Habib Chairperson

Remuneration Committee Hasnain Habib Member

Khursheed A. Jamal Member

Chief Financial Officer Amir Bashir Ahmed

Company Secretary Imran Amin Virani

Registered Office 3rd Floor, Imperial Court, Dr. Ziauddin Ahmed Road, Karachi-75530

Phones : (+92-21) 35680036 - 5 Lines

Fax : (+92-21) 35684086

www : habibsugar.com

E-mail : sugar@habib.com

Mills Sugar & Distillery Division

Nawabshah, District Shaheed Benazirabad Phones : (+92-244) 360751 - 5 Lines

Fax : (+92-244) 361314

Textile Division

D-140/B-1 Manghopir Road

S.I.T.E. Karachi-75700

Phones : (+92-21) 32571325, 32572119

Fax : (+92-21) 32572118

Terminal 60/1-B Oil Installation Area Keamari Karachi-75620

Phones : (+92-21) 32852003-4

Fax : (+92-21) 32852005

Bankers Allied Bank Limited Bank AL Habib Limited Bank Al-Falah Limited

First Women Bank Limited JS Bank Limited

Habib Bank Limited

Habib Metropolitan Bank Limited MCB Bank Limited

Meezan Bank Limited National Bank of Pakistan United Bank Limited

Statutory Auditors Grant Thornton Anjum Rahman

Chartered Accountants

Cost Auditors Reanda Haroon Zakaria Aamir Salman Rizwan & Co.

Chartered Accountants

Share Registrar THK Associates (Pvt.) Limited

Plot No. C-32, Jami Commercial Street-2

D.H.A. Phase VII, Karachi.

UAN : (+92-21) 111-000-322

Phone : (+92-21) 35310184

Fax : (+92-21) 35310191

E-mail : sfc@thk.com.pk

Directors' Report Dear Members - Assalam-o-Alekum

On behalf of the Board of Directors, we are pleased to present the unaudited condensed interim financial statements, duly reviewed by the auditors of the Company, for the half year ended March 31, 2025. The Company has earned pre-tax profit of Rs. 1,277 million (2024: Rs. 1,583 million). The financial results of the Company for the half year are summarized below:

Financial Results

	Half year ended March 31, 2025	Half year ended March 31, 2024 (Rupees in Million)	Variance
Profit before taxation	1,277	1,583	(306)
Less: Taxation	(610)	(330)	(280)
Profit after taxation Add: Realized gain on sale of investments - shares of companies	667 115	1,253 21	(586) 94
- units of mutual funds	487	37	450
Total realized gain on sale of investments	602	58	544
	1,269	1,311	(42)
Unappropriated profit brought forward	248	5	243
Unappropriated profit carried forward	1,517	1,316	201
Overall performance

The overall performance of the Company for the period under review remained consistent compared to the preceding period. Key highlights are as under:

Taxation

The tax expense increased mainly due to charge of tax on realized gain on sale of investments, tax on export subsidy received and change of basis of tax on the income from export-oriented divisions of the Company, which was previously taxable up to June 30, 2024 at the rate of 1% of receipts and now taxable at the corporate tax rate of 39% (i.e., Income Tax: 29% and Super Tax: 10%).

Realized gain on sale of investments

The realized gain on sale of investments significantly increased during the period under review for the reason that the Company had diverted its investment in the units of mutual funds on short-term basis from fixed deposits/saving accounts for better returns.

The carry forward of unrealized gain on investments in shares of companies as on March 31, 2025 was Rs. 3,718 million (September 30, 2024: 2,584 million). The increase in unrealized gain was due to better performance of PSX and was mainly related to the shares purchased by the Company in previous years.

Sugar Division

The crushing season 2024-25 commenced on November 20, 2024 and the plant operated until March 5, 2025 for 106 days compared to 110 days in the preceding season. Sugarcane crushed during the current season was 839,005 M. Tons with average sucrose recovery of 9.916% and sugar production of 83,198 M. Tons as compared with sugarcane crushing of 1,065,705 M. Tons with average sucrose recovery of 10.630% and sugar production of 113,286 M. Tons during the preceding season.

Unlike the previous practice, the Sindh Government did not issue a notification for fixing a minimum support price for the purchase of sugarcane for the crushing season 2024-25. The Company therefore, procured sugarcane from growers at prevailing market rates.

The sugar division earned operating profit of Rs. 780 million (2024: Rs. 453 million). The increase in operating profit was mainly attributed to the profits realized on export of sugar made by the Company under the export quota allowed by the Government of Pakistan and increase in the quantum of sales. Accordingly, export related selling expenses are also increased.

Distillery Division

The ethanol production during the half year ended March 31, 2025 was 12,328 M. Tons (2024: 13,150 M. Tons). The division earned operating profit of Rs. 168 million (2024: Rs. 442 million). The decrease in profit was mainly due to depressed selling prices in the international market and lower sales volume.

The Liquified Carbon Dioxide (C02) unit produced 4,313 M. Tons (2024: 3,994 M. Tons). The contribution of the unit is included in the profit of the division

Textile Division

The division earned profit of Rs. 4 million during the half year under review (2024: Rs. 16 million). The decrease in profit was mainly attributable to decrease in selling prices and lower sales volume.

Acknowledgement

The Board of directors expresses its gratitude to all staff members, shareholders, financial institutions and other stakeholders of the Company for their continued support and cooperation.

On behalf of the Board of Directors

Khursheed A. Jamal

Chief Executive

Karachi: May 14, 2025

Murtaza Habib

Director

Grant Thornton Anjum Rahman

1st & 3rd Floor, Modern Motors House, Beaumont Road, Karachi, Pakistan.

T +92 21 35672951-56

INDEPENDENT AUDITORS' REVIEW REPORT TO THE MEMBERS OF HABIB SUGAR MILLS LIMITED REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS Introduction

We have reviewed the accompanying condensed interim statement of financial position of Habib Sugar Mills Limited as at 31 March 2025 and the related condensed interim statement of profit or loss, condensed interim statement of other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the condensed interim financial statements for the half year then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements are not prepared, in all material respects, in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting.

Other Matters

The figures of the quarters ended 31 March 2025 and 31 March 2024 in the condensed interim statement of profit or loss and condensed interim statement of comprehensive income have not been reviewed and we do not express a conclusion on them.

The engagement partner on the review resulting in this independent auditor's review report is Khurram Jameel.

Chartered Accountants Place: Karachi

Date: 21 May 2025

UDIN: RR20251009314ShNl8C7

Condensed Interim Statement of Financial Position as at March 31, 2025 (Unaudited)

Unaudited Audited

Note March 31, Sept. 30,

Assets 2025 2024

Property, plant and equipment Right-of-use assets	2,025,599 18,425		2,092,699 14,849
Long-term investments	4	4,642,775		3,542,201
Long-term loans		16,440		15,259
Long-term deposits		3,972		3,972
Current Assets		6,707,211		5,668,980
Stores and spare parts Stock-in-trade	5	382,810 11,409,671		353,120 5,389,802
Trade debts		850,086		859,516
Loans and advances		419,678		774,407
Trade deposits and short-term prepayments		98,593		43,537
Accrued profit Other receivables		201 14,553		534 18,315
Short-term investments	6	3,335,762		5,780,392
Cash and bank balances	7	1,563,769		1,101,319
		18,075,123		14,320,942
Total Assets		24,782,334		19,989,922
Equity and Liabilities
Share Capital and Reserves
Authorised Capital 150,000,000 Ordinary shares of Rs. 5 each		750,000		750,000
Issued, subscribed and paid-up share capital 135,000,000 Ordinary shares of Rs. 5 each		675,000		675,000
Reserves	8	13,951,034		12,498,094
Total Equity		14,626,034		13,173,094
Non-Current Liabilities
Deferred taxation	9	432,800	328,500
Lease liability		2,780	10,798
		435,580	339,298
Current Liabilities
Trade and other payables	10	3,024,699		3,092,874
Contract liability		2,359,121		2,115,996
Short-term borrowings	11	3,566,499		906,732
Unclaimed dividends		429,552		272,090
Accrued mark-up		37,724		1,917
Taxation - net		283,751		79,911
Current portion of lease liability		19,374		8,010
		9,720,720		6,477,530
Total Equity and Liabilities		24,782,334		19,989,922
Contingencies and Commitments	12
The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Non-Current Assets (Rupees in thousands)

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

Condensed Interim Statement of Profit or Loss for the half year ended March 31, 2025 (Unaudited)

	Half year ended	Quarter ended
Note	March 31, March 31,	March 31, March 31,
	2025 2024	2025 2024

(Rupees in thousands)

Net sales and services	13	9,572,728	9,671,824	4,699,245	4,983,758
Cost of sales		(8,181,030)	(8,345,021)	(3,942,985)	(4,224,045)
Gross profit		1,391,698	1,326,803	756,260	759,713
Selling and distribution expenses		(235,710)	(168,837)	(130,867)	(84,889)
Administrative expenses		(203,393)	(180,189)	(97,879)	(89,981)
Other operating expenses	14	(124,918)	(101,345)	(73,133)	(43,860)
Other income	15	464,678	759,477	279,360	279,191
		(99,343)	309,106	(22,519)	60,461
Operating profit		1,292,355	1,635,909	733,741	820,174
Finance cost - net		(15,211)	(52,800)	(36,313)	(102,501)
Profit before levy and income tax		1,277,144	1,583,109	697,428	717,673
Levy - final tax		(120,346)	(151,174)	(79,123)	(59,037)
Profit before income tax		1,156,798	1,431,935	618,305	658,636
Income tax
- Current		(497,654)	(223,826)	(299,378)	11,537
- Deferred		8,000	45,000	3,500	(12,500)
		(489,654)	(178,826)	(295,878)	(963)
Net profit for the period		667,144	1,253,109	322,427	657,673
Earnings per share - Basic and diluted	(Rupees)	4.94	(Restated) 9.28	2.39	(Restated) 4.87

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

Condensed Interim Statement of Comprehensive Income for the half year ended March 31, 2025 (Unaudited)

Half year ended Quarter ended March 31, March 31, March 31, March 31,

2025 2024 2025 2024

(Rupees in thousands)

Net Profit for the period 667,144 1,253,109 322,427 657,673 Other comprehensive income : Items that will not be reclassified to the statement of profit or loss:

Unrealised gain on re-measurement of investments

at FVOCI - net of tax 1,595,796 1,291,449 369,012 119,946

Total comprehensive income for the period 2,262,940 2,544,558 691,439 777,619

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

Condensed Interim Statement of Changes in Equity for the half year ended March 31, 2025 (Unaudited)

Reserves

Issued, Capital General Accumulated Unrealised Total Total Subscribed Reserve Reserve Profit Gain / (Loss) on Reserves Equity and Paid-up re-measurement

Capital of FVOCI

Investment

Balance as on 30 September 2023 (Audited) 750,000 34,000 7,218,500 2,314,540 998,366 10,565,406 11,315,406

Final cash dividend for the year ended

30 September 2023 @ 120% - - - (900,000) - (900,000) (900,000)

Transfer to general reserve - - 1,410,000 (1,410,000) - - -

1,253,109

1,291,449

1,253,109

1,291,449

-1,291,449

1,253,109

Net profit for the period

Other comprehensive income for the period

Total comprehensive income for the period - - - 1,253,109 1,291,449 2,544,558 2,544,558 Realised gain on sale of investments - net - - - 58,395 (58,395) - -Own shares purchased for cancellation - - (189,568) - - (189,568) (189,568)

Balance as on 31 March 2024	750,000		34,000		8,438,932		1,316,044		2,231,420		12,020,396		12,770,396

Balance as on 30 September 2024 (Audited)	675,000		34,000		7,581,045		2,057,586		2,825,463		12,498,094		13,173,094
Final cash dividend for the year ended
30 September 2024 @ 120%	-	-		-		(810,000)		-		(810,000)		(810,000)
Transfer to general reserve	-		-		1,000,000		(1,000,000)		-		-		-
Net profit for the period	-		-		-		667,144		-		667,144		667,144
Other comprehensive income for the period	-		-		-		-		1,595,796		1,595,796		1,595,796
Total comprehensive income for the period	-		-		-		667,144		1,595,796		2,262,940		2,262,940
Realised gain on sale of investments - net	-		-		-		602,037		(602,307)		-		-
Balance as on 31 March 2025	675,000		34,000		8,581,045		1,516,767		3,819,222		13,951,034		14,626,034

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

Condensed Interim Statement of Cash Flows for the Half year ended March 31, 2025 (Unaudited)

Note March 31, March 31,

2025 2024

(Rupees in thousands)

Cash flows from operating activities

Cash used in operations	16	(4,474,800)	(7,527,689)
Finance cost received - net		20,929	96,890
Income tax paid		(414,161)	(332,775)
Long-term loans - net		(1,181)	(1,740)
Net cash used in operating activities		(4,869,213)	(7,765,314)
Cash flows from investing activities
Additions to operating fixed assets		(27,246)	(10,134)
Sale proceeds / redemption of investments		11,599,939	7,107,594
Dividend received		300,609	644,068
Investments made		(8,547,787)	(2,142,095)
Proceeds from sale of operating fixed assets		2,835	3,757
Net cash generated from investing activities		3,328,350	5,603,190
Cash flows from financing activities
Lease rental paid		(3,916)	(4,658)
Buy back of own shares for cancellation		-	(189,568)
Dividend paid		(652,538)	(746,560)
Net cash used in financing activities		(656,454)	(940,786)
Net decrease in cash and cash equivalents		(2,197,317)	(3,102,910)
Cash and cash equivalents at the beginning of the period		194,587	117,638
Cash and cash equivalents at the end of the period 17		(2,002,730)	(2,985,272)

The annexed notes 1 to 21 form an integral part of these condensed interim financial statements.

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

Notes to the Condensed Interim Financial Statements for the Half year ended March 31, 2025 (Unaudited)

THE COMPANY AND ITS OPERATIONS
Habib Sugar Mills Limited is a public limited Company incorporated in Pakistan, with its shares quoted on the Pakistan Stock Exchange Limited. The Company is engaged in the manufacturing and marketing of refined sugar, molasses, ethanol, liquidified carbon dioxide (CO2), household textiles, providing bulk storage facilities and trading of commodities. The registered office of the Company is situated at Imperial Court, 3rd Floor, Dr. Ziauddin Ahmed Road, Karachi.
STATEMENT OF COMPLIANCE
1. These condensed interim financial statements are unaudited and have been prepared in accordance with the accounting and reporting, as applicable. The accounting and reporting standards applicable in Pakistan for interim financial reporting comprise of:
  - International Accounting Standards 34; 'Interim Financial Reporting', (IAS 34) issued by International Accounting Standard Board (IASB) as notified under the Companies Act, 2017 (the Act),
  - Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan (ICAP) as are notified under the Act; and
  - Provisions of and directives issued under the Act.
  Where the provisions of and directives issued under the Act and IFAS differ with the requirements of IAS 34, the provisions of and directives issued under the Act and IFAS have been followed.
  1. These condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company's annual financial statements for the year ended 30 September 2024.
  2. The figures of the condensed interim statement of profit or loss, condensed interim statement of comprehensive income for the three months ended March 2025 and March 2024 and notes forming part thereof have not reviewed by the auditors of the Company, as they have reviewed the cumulative figures for the six months ended March 2025 and March 2024.

3. ACCOUNTING POLICIES, ESTIMATES, JUDGEMENTS AND FINANCIAL RISK POLICIES

The accounting policies, estimates, judgements and financial risk policies used in these condensed interim financial statements are the same as those applied in the preparation of annual financial statements for the year ended 30 September 2024.

(Unaudited) (Audited)

March 31, Sept. 30,

2025 2024

(Rupees in thousands)

4.	Long-term investments - FVOCI
	Investments in related parties - Quoted	3,483,408	2,414,474
	Investments in related parties - Un-Quoted	13,125	13,125
	Investments in other companies - Quoted	1,146,242	1,114,602
		4,642,775	3,542,201
			11

4.1 The aggregate cost of these investments, net of impairment is Rs.739.68 (September 30, 2024: Rs.884.76) million.

(Unaudited) (Audited)

March 31, Sept. 30,

2025 2024

(Rupees in thousands)

5. Stock-in-trade
Raw materials	2,565,693	284,802
Work-in-process	97,095	96,093
Finished goods	8,526,415	4,994,683
Bagasse	220,468	14,224
	11,409,671	5,389,802
6. Short-term investments
Units of mutual funds	3,335,762	5,780,392

The aggregate cost of these units is Rs. 3,234.33 (30 September 2024: Rs. 5,539.38) million.

Note			(Unaudited) March 31, 2025	(Audited) Sept. 30, 2024
7.	Cash and bank balances		(Rupees in	thousands)
	Cash in hand		1,827	470
	Bank balances
	Current accounts		18,238	78,375
	Treasury call accounts	7.1	1,495,704	974,474
	Term Deposit Receipts		48,000	48,000
		7.2	1,561,942	1,100,849
			1,563,769	1,101,319

These carry profit rates ranged between 10.00% to 20.60% (30 September 2024: 14.00
% to 20.60 % ) per annum.
Includes Rs.1,411.37 (30 September 2024: Rs. 1,104.27 ) million kept with Bank AL Habib Limited - a related party.

8. Reserves Capital

March 31, Sept. 30,

2025 2024

Note (Rupees in thousands)

Share premium		34,000	34,000
Revenue
General reserve	8.1	8,581,045	7,581,045
Accumulated profit Unrealised gain on re-measurement	of FVOCI investments	1,516,767 3,819,222	2,057,586 2,825,463

13,917,034 12,464,094

13,951,034 12,498,094

(Unaudited) (Audited)

March 31, Sept. 30,

2025 2024

Note (Rupees in thousands)

8.1 At the beginning of the year	7,581,045	7,218,500
Cancellation on own shares purchased	-	(1,047,455)
Transferred from unappropriated profit	1,000,000	1,410,000
	8,581,045	7,581,045
9. Deferred taxation
Deferred tax liability on taxable temporary differences: Accelerated tax depreciation	324,500	330,500
Re-measurement of investments	185,300	73,000
	509,800	403,500
Deferred tax asset on deductible temporary differences:
Provisions	(68,500)	(67,500)
Others	(8,500)	(7,500)
	(77,000)	(75,000)
	432,800	328,500
10. Trade and other payables
Creditors	2,194,825	2,112,260
Accrued liabilities	515,556	508,101
Sales tax payable	44,486	173,507
Payable to Employees Gratuity Fund	-	1,856
Gas Infrastructure Development Cess	111,359	109,555
Workers' Profit Participation Fund (WPPF)	100,169	149,311
Workers' Welfare Fund	55,442	32,442
Income-tax deducted at source	2,862	5,842
	3,024,699	3,092,874

11. Short-Term Borrowings - secured

The aggregate financing facility available from commercial banks amounted to Rs.14,846 (September 2024: Rs.13,846) million. These financing facilities are secured by way of registered charge against hypothecation of stock-in-trade, stores and spares, assignment of trade debts and other receivables. The rate of mark-up charged during the period was 2.00% to 11.79% September 2024: 2.00% to 22.54%) per annum.

CONTINGENCIES AND COMMITMENTS
1. There has been no significant change in the status of contingencies as reported in audited annual financial statements of the Company for the year ended September 30, 2024.
2. The Company has provided counter guarantees to Bank AL Habib Limited, a related party, amounting to Rs.600 September 30, 2024: Rs.600) million against agriculture finance facilities to the growers suppling sugarcane to the mills and counter guarantees to other banks amounting to Rs.4,781.00 (September 30, 2024: Rs.2,691.93) million against guarantees issued by banks in favour of third parties on behalf of the Company.
  (Unaudited) (Audited)
  March 31, Sept. 30,
  2025 2024
  (Rupees in thousands)
3. Rentals payable over next four years under Ijarah agreements with
  First Habib Modraba in respect of vehicles 126,687 152,716
  13
  
  14

Segment operating Results

(Rupees in thousands)

Sugar Division Distillery Division Textile Division Trading Division Total

	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024	March 31, 2025	March 31, 2024
Net sales and services
Sales - Local	6,121,241	4,642,100	291,431	397,093	2,662	2,254	-	614,590	6,415,334	5,656,037
- Export	769,122	-	2,081,491	3,428,256	305,934	361,599	-	223,295	3,156,547	4,013,150
	6,890,363	4,642,100	2,372,922	3,825,349	308,596	363,853	-	837,885	9,571,881	9,669,187
Services-Storage income-net	-	-	847	2,637	-	-	-	-	847	2,637
	6,890,363	4,642,100	2,373,769	3,827,986	308,596	363,853	-	837,885	9,572,728	9,671,824
Less: Cost of sales	(5,838,715)	(3,984,401)	(2,062,108)	(3,269,402)	(280,207)	(323,596)	-	(767,622)	(8,181,030)	(8,345,021)
Gross Profit	1,051,648	657,699	311,661	558,584	28,389	40,257	-	70,263	1,391,698	1,326,803
Less: Selling and distribution expenses	(96,263)	(50,576)	(119,941)	(97,627)	(19,506)	(18,048)	-	(2,586)	(235,710)	(168,837)
Administrative expenses	(175,218)	(154,483)	(23,517)	(18,784)	(4,658)	(6,504)	-	(418)	(203,393)	(180,189)
	(271,481)	(205,059)	(143,458)	(116,411)	(24,164)	(24,552)	-	(3,004)	(439,103)	(349,026)
Profit before other operating expenses and other income	780,167	452,640	168,203	442,173	4,225	15,705	-	67,259	952,595	977,777
Other operating expenses - note 14									(124,918)	(101,345)
Other income - note 15									464,678	759,477
Operating Profit									1,292,355	1,635,909

The Company's Sugar division production process is seasonal in nature because of the cultivation and reaping of sugarcane due to which production is carried out in the first half of the financial year.

Segment operating results for the three months period ended 31 March 2025 (Unaudited)

(Rupees in thousands)

Sugar Division Distillery Division Textile Division Trading Division Total

	March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024		March 31, 2025		March 31, 2024
Net sales and services
Sales Local	3,409,135		2,463,027		173,529		218,276		2,662		-		-		588,473		3,585,326		3,269,776
Export	40,066		-		947,801		1,368,116		125,321		120,631		-		223,295		1,113,188		1,712,042
	3,4449,201		2,463,027		1,121,330		1,586,392		127,983		120,631		-		811,768		4,698,514		4,981,818
Services-Storage income-net	-	-		731		1,940		-		-		-		-		731		1,940
	3,449,201		2,463,027		1,122,061		1,588,332		127,983		120,631		-		811,768		4,699,245		4,983,758
Less: Cost of sales	(2,894,386)		(2,097,201)		(931,248)		(1,282,390)		(117,351)		(100,326)		-		(744,128)		(3,942,985)		(4,224,045)
Gross Profit	554,815		365,826		190,813		305,942		10,632		20,305		-		67,640		756,260		759,713
Less: Selling and distribution expenses	(46,279)		(22,402)		(76,601)		(51,075)		(7,987)		(8,826)		-		(2,586)		(130,867)		(84,889)
Administrative expenses	(86,134)		(79,198)		(9,295)		(7,208)		(2,450)		(3,344)		-		(231)		(97,879)		(89,981)
	(132,413)		(101,600)		(85,896)		(58,283)		(10,437)		(12,170)		-		(2,817)		(228,746)		(174,870)
Profit before other operating expenses and other income	422,402		264,226		104,917		247,659		195		8,135		-		64,823		527,514		584,843
Other operating expenses - note 14																	(73,133)		(43,860)
Other income - note 15																	279,360		279,191
Operating Profit																	733,741		820,174

Half year ended Quarter ended March 31, March 31, March 31, March 31,

2025 2024 2025 2024

(Unaudited) (Unaudited) (Rupees in thousands)

Other operating expenses

Workers' Profit Participation Fund	100,115	87,027	59,750		40,231
Workers' Welfare Fund Remeasurement loss on discounting of	23,000	12,000	13,000		3,000
provision for GIDC 1,803		2,318		383		629
124,918		101,345		73,133		43,860
15. Other income
Dividend income	294,188		645,927		166,333	221,086
Scrap sales	10,283		4,656		2,272	2,565
Gain on disposal of fixed assets	1,751		3,654		1,686	3,619
Sugar Freight Subsidy	100,741		-		100,741	-
Agriculture income - net	6,948		31,367		4,628	23,539
Exchange gain	50,767		73,873		3,700	28,382
	464,678		759,477		279,360	279,191
					(Unaudited)

March 31, March 31,

2025 2024

Note (Rupees in thousands)

16. Cash used in operations
Profit before taxation	1,277,144	1,583,109
Adjustment for non-cash charges and other items
Depreciation	96,950	102,075
Remeasurement loss on discounting of provision for GIDC	1,803	2,318
Gain on disposal of fixed assets	(1,751)	(3,654)
Finance income / (cost) - net	15,211	52,800
Dividend income	(294,188)	(645,927)
Working capital changes 16.1	(5,569,969)	(8,618,410)
	(4,474,800)	(7,527,689)

16.1 Working capital changes (Increase) / decrease in current assets

Stores and spare parts Stock-in-trade

Trade debts

Loans and advances

Trade deposits and short term prepayments Other receivables

Half year ended

March 31, March 31,

2025 2024

(Rupees in thousands)

(29,690)

(6,019,869)

9,430

354,729

(55,056)

(2,659)

98,654

(9,343,632)

(91,509)

(878,394)

(24,709)

(4,320)

(5,743,115) (10,243,910)

Increase / (decrease) in current liabilities

Trade and other payables Contract liability

(69,979)

243,125

(45,805)

1,671,305

173,146 1,625,500

Net changes in working capital (5,569,969) (8,618,410)

Cash and cash equivalents at the end of the period
Cash and bank balances 1,563,769 2,085,104
Short-term borrowings (3,566,499) (5,070,376)
(2,002,730) (2,985,272)
Date of Authorisation for Issue
These condensed interim financial statements were authorised for issue on May 14, 2025 by the Board of Directors of the Company.
Fair Values of Assets and Liabilities
There were no transfers amongst levels during the period.
Transactions with Related Parties
Related parties comprise of associated entities, entities with common directorship, directors, key management personnel and Employees Retirement Benefits Funds. Material transactions with related parties during the period and balances at the end of the period, other than those which have been disclosed elsewhere in these condensed interim financial statements, are as follows:
17

Half year ended March 31, March 31,

2025 2024

(Unaudited) (Rupees in thousands)

Nature of Relationship	Nature of transactions
Other related parties	Investment in shares / units of mutual fund	2,746,183	154,527
	Sale of Shares / units of mutual fund	3,650,000	2,991,867
	Insurance premium paid	14,101	31,836
	Insurance claim received	2,720	3,428
	Profit on treasury call accounts / term deposits	87,390	197,161
	Capital Gain on sale of units of Mutual Funds	194,220	22,611
	Dividend income	241,367	411,093
	Dividend paid	89,376	89,376
	Bank charges	89	180
Key management personnel	Managerial remuneration	48,549	47,479
Retirement benefit funds	Contribution to retirement funds	14,361	13,541

1. Transactions with related parties are carried out under normal commercial terms and conditions.
General
1. Figures presented in these condensed interim financial statements have been rounded off to the nearest thousand rupees.
2. Corresponding figures have been reclassified wherever necessary for better presentation.

Amir Bashir Ahmed

Chief Financial Officer

Khursheed A. Jamal

Chief Executive

Murtaza Habib

Director

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