Habib Sugar Mills Limited |
Report and Condensed Interim |
Financial Statements |
for the Quarter ended |
December 31, 2024 |
(Unaudited) |
Contents
Company Information | 2 |
Directors' Report | 3 |
Condensed Interim Statement of Financial Position | 5 |
Condensed Interim Statement of Profit or Loss | 6 |
Condensed Interim Statement of Comprehensive Income | 7 |
Condensed Interim Statement of Changes in Equity | 8 |
Condensed Interim Statement of Cash Flows | 9 |
Notes to the Condensed Interim Financial Statements | 10 |
19 | |
1
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 Mangopir 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 & 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 | ||
: | sfc@thk.com.pk | |||
2 |
Directors' Report
Dear Members -Assalam-o-Alaikum
On behalf of the Board of Directors, we are pleased to present to you the unaudited condensed interim financial statements of the Company for the first quarter ended on December 31, 2024. The Company has earned pre-tax profit of Rs. 579.72 million (2023: Rs. 865.44 million). The financial results of the Company for the first quarter ended on December 31, 2024 are summarized below:
Financial Results | ||||||
First Quarter ended | First Quarter ended | Variance | ||||
December 31, 2024 | December 31, 2023 | |||||
(Rupees in Million) | ||||||
Profit before levies and income tax | 579.72 | 865.44 | (285.72) | |||
Less: Levies-final tax | (41.22) | (92.14) | 50.92 | |||
Profit before taxation | ||||||
538.50 | 773.30 | (234.80) | ||||
Less: Taxation | (193.78) | (177.86) | (15.92) | |||
Profit after taxation | ||||||
344.72 | 595.44 | (250.72) | ||||
Add: Realized gain on sale of investment | 177.21 | 14.69 | 162.52 | |||
Unappropriated profit brought forward | 247.59 | 4.55 | 243.04 | |||
Unappropriated profit carried forward | ||||||
769.52 | 614.68 | 154.84 | ||||
Earnings per share-Basic and diluted Rs. | ||||||
2.55 | 4.41 | (1.86) | ||||
Sugar Division
The crushing season for 2024-25 commenced on November 20, 2024 and upto December 31, 2024, sugarcane of 310,437 M. Tons was crushed with average sucrose recovery of 9.46 % and sugar production of 29,380 M. Tons compared with sugarcane crushing of 475,122 M. Tons with average sucrose recovery of
10.06 % and sugar production of 47,778 M. Tons during the corresponding quarter of the previous year.
Unlike the previous practice, the Sindh Government has not issued a notification for fixing a minimum support price for the purchase of sugarcane for the crushing season 2024-25, hence the Company is procuring sugarcane from growers at the prevailing market rates.
The sugar division earned operating profit of Rs. 357.77 million (2023: Rs. 188.41 million). The increase in operating profit was attributed to better profit margins on export of sugar of over 5,000 M. Tons made by the Company during the quarter under the export quota allowed by the Government of Pakistan during the financial year 2024-25.
3
Distillery Division
The ethanol production during the first quarter ended December 31, 2024 was 3,633 M. Tons (2023: 5,793 M. Tons). The division earned operating profit of Rs. 63.29 million (2023: Rs. 194.51 million). The decrease in profit was mainly due to depressed selling prices in the international market and lower production volumes.
The liquified carbon dioxide (CO2) unit produced 1,156 M. Tons (2023: 1,670 M. Tons). The contribution of the unit is included in the profit of the division.
Textile Division
The division earned operating profit of Rs. 4.03 million (2023: Rs. 7.57 million).
Trading Division
During the quarter, there was no activity in the Trading division as compared to the profit of Rs. 2.44 million earned by the Company during the corresponding quarter of the previous year.
Acknowledgement
The Directors of the Company would like to thank all the staff, 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 | Murtaza Habib |
Chief Executive | Director |
Karachi: January 23, 2025
4
Condensed Interim Statement of Financial Position as at December 31, 2024 (Unaudited)
Assets | Note |
Non-Current Assets | |
Property, plant and equipment | 4 |
Right-of-use assets | |
Long-term investments | 5 |
Long-term loans | |
Long-term deposits | |
Current Assets | |
Stores and spare parts | |
Stock-in-trade | 6 |
Trade debts | |
Loans and advances | 7 |
Trade deposits and short-term prepayments | |
Accrued Profit | |
Other receivables | |
Short-term investments | 8 |
Cash and bank balances | 9 |
Total Assets
Equity and Liabilities
Share Capital and Reserves
Share Capital Authorised
150,000,000 Ordinary shares of Rs. 5 each
Issued, subscribed and paid-up capital 135,000,000 Ordinary shares of Rs. 5 each
Reserves
Total Equity
Non-Current Liabilities
Unaudited | Audited |
Dec 31, | Sept. 30, |
2024 | 2024 |
(Rupees in thousands)
2,085,502 | 2,092,699 | |
13,039 | 14,849 | |
4,457,426 | 3,542,201 | |
16,036 | 15,259 | |
3,972 | 3,972 | |
6,575,975 | 5,668,980 | |
449,960 | 353,120 | |
6,267,922 | 5,389,802 | |
908,895 | 859,516 | |
1,165,666 | 774,407 | |
44,365 | 43,537 |
311534
23,36518,315
10,380,779 | 5,780,392 | |
2,000,516 | 1,101,319 | |
21,241,779 | 14,320,942 | |
27,817,754 | 19,989,922 | |
750,000750,000
675,000675,000
13,259,594 12,498,094
13,934,594 13,173,094
Deferred taxation | 10 |
Lease liability
Current Liabilities
436,300
9,989
446,289
328,500
10,798
339,298
Trade and other payables | 11 | 3,561,546 |
Contract liability | 3,417,590 | |
Short-term borrowings | 12 | 5,160,221 |
Unclaimed dividends | 272,090 | |
Accrued Mark-up | 12,539 | |
Taxation - net | 195,964 | |
Current portion of lease liability | 6,921 | |
Proposed dividend | 810,000 | |
Contingencies and Commitments | 13 | 13,436,871 |
Total Equity and Liabilities | 27,817,754 | |
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
3,092,874
2,115,996
906,732
272,090
1,917
79,911
8,010
-
6,477,530
19,989,922
Amir Bashir Ahmed | Khursheed A. Jamal | Murtaza Habib |
Chief Financial Officer | Chief Executive | Director |
5
Condensed Interim Statement of Profit or Loss
for the quarter ended December 31, 2024 (Unaudited)
Note | Dec. 31, | Dec. 31, |
2024 | 2023 | |
(Rupees in thousands) |
Segment operating results | 14 | ||||
Net sales and services | 4,873,483 | ||||
Cost of sales | (4,238,045) | ||||
Gross Profit | |||||
635,438 | |||||
Selling and distribution expenses | (104,843) | ||||
Administrative expenses | (105,514) | ||||
Other operating expenses | 15 | (51,785) | |||
Other income | 16 | 185,318 | |||
76,824 | |||||
Operating Profit | |||||
558,614 | |||||
Finance (cost) / income - net | 17 | 21,102 | |||
Profit before levies and income tax | |||||
579,716 | |||||
Levies - final tax | (41,223) | ||||
Profit before income tax | |||||
538,493 | |||||
Taxation | (193,777) | ||||
Net profit for the period | |||||
344,716 | |||||
Earnings per share - Basic and diluted (Rupees) | |||||
2.55 | |||||
4,688,066
(4,120,976)
567,090
(83,948)
(90,208)
(57,485)
480,286
248,645
815,735
49,701
865,436
(92,137)
773,299
(177,863)
595,436
(Restated)
4.41
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Amir Bashir Ahmed | Khursheed A. Jamal | Murtaza Habib |
Chief Financial Officer | Chief Executive | Director |
6
Condensed Interim Statement of Comprehensive Income for the quarter ended December 31, 2024 (Unaudited)
Dec. 31, | Dec. 31, | ||
2024 | 2023 | ||
(Rupees in thousands) | |||
Profit after taxation | 344,716 | 595,436 | |
Other comprehensive income : | |||
Items that will not be reclassified subsequently to the | |||
statement of profit or loss: | |||
Unrealised Gain on re-measurement of equity investments | |||
classified as fair value through other comprehensive income (FVOCI) | 1,226,784 | 1,171,503 | |
Total Comprehensive income for the quarter | |||
ended December 31, 2024 | 1,571,500 | 1,766,939 | |
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Amir Bashir Ahmed | Khursheed A. Jamal | Murtaza Habib |
Chief Financial Officer | Chief Executive | Director |
7
Condensed Interim Statement of Changes in Equity for the quarter ended December 31, 2024 (Unaudited)
Reserves | ||||||||||||||||||
Issued, | Unrealised | |||||||||||||||||
Subscribed | gain/ (loss) on | |||||||||||||||||
and | Unappro- | re-measurement | ||||||||||||||||
Paid-up | Capital | General | priated | of investments | Total | Total | ||||||||||||
Capital | Reserve | Reserve | Profit | at FVOCI | Reserves | Equity | ||||||||||||
(Rupees in thousands) | ||||||||||||||||||
Balance as on October 1, 2023 | 750,000 | 34,000 | 7,218,500 | 2,314,540 | 998,366 | 10,565,406 | 11,315,406 | |||||||||||
Cash dividend for the year ended | ||||||||||||||||||
September 30, 2023 @ 120% | -00 | -00 | -00 | (900,000) | -00 | (900,000) | (900,000) | |||||||||||
Transfer to general reserve | -00 | -00 | 1,410,000 | (1,410,000) | -00 | -00 | -00 | |||||||||||
Realised gain on sale of investment | -00 | -00 | -00 | 14,692 | (14,692) | -00 | -00 | |||||||||||
Total comprehensive income | ||||||||||||||||||
for the quarter ended December 31, 2023 | -00 | -00 | -00 | 595,436 | 1,171,503 | 1,766,939 | 1,766,939 | |||||||||||
Balance as on December 31, 2023 | ||||||||||||||||||
750,000 | 34,000 | 8,628,500 | 614,668 | 2,155,177 | 11,432,345 | 12,182,345 | ||||||||||||
Balance as on October 1, 2024 | ||||||||||||||||||
675,000 | 34,000 | 7,581,045 | 2,057,586 | 2,825,463 | 12,498,094 | 13,173,094 | ||||||||||||
Proposed cash dividend for the year ended | ||||||||||||||||||
September 30, 2024 @ 120% | -00 | -00 | -00 | (810,000) | -00 | (810,000) | (810,000) | |||||||||||
Proposed transfer to general reserve | -00 | -00 | 1,000,000 | (1,000,000) | -00 | -00 | -00 | |||||||||||
Realised gain on sale of investment | -00 | -00 | -00 | 177,210 | (177,210) | -00 | -00 | |||||||||||
Total comprehensive income | ||||||||||||||||||
for the quarter ended December 31, 2024 | -00 | -00 | -00 | 344,716 | 1,226,784 | 1,571,500 | 1,571,500 | |||||||||||
Balance as on December 31, 2024 | ||||||||||||||||||
675,000 | 34,000 | 8,581,045 | 769,512 | 3,875,037 | 13,259,594 | 13,934,594 | ||||||||||||
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
Amir Bashir Ahmed | Khursheed A. Jamal | Murtaza Habib |
Chief Financial Officer | Chief Executive | Director |
8
Condensed Interim Statement of Cash Flows
for the quarter ended December 31, 2024 (Unaudited)
Note | |
Cash flows from operating activities | |
Cash generated from / (used in) operations | 18 |
Finance cost paid - net | |
Income tax paid | |
Long-term loans |
Net cash generated from / (used in) operating activities
Cash flows from investing activities
Fixed capital expenditure
Redemption / Sale proceeds of investments
Dividend received
Purchase of investments
Sale proceeds of fixed assets
Net cash generated from / (used in) investing activities
Cash flows from financing activities
Dec. 31, | Dec. 31, | |
2024 | 2023 | |
(Rupees in thousands) | ||
823,451 | (2,921,941) | |
31,947 | 130,932 | |
(123,447) | (117,275) |
- (3,698)
731,174 (2,911,982)
(39,144) | (9,691) |
1,849,868 | 2,811,104 |
131,726 | 417,185 |
(6,026,398) | (2,328,186) |
38064
(4,083,568) 890,476
Lease rental paid | (1,898) | |
Dividend paid | -00 | |
Net cash used in financing activities | (1,898) | |
Net decrease in cash and cash equivalents | (3,354,292) | |
Cash and cash equivalents at the beginning of the period | 194,587 | |
Cash and cash equivalents at the end of the period | 19 | |
(3,159,705) | ||
The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.
(2,200)
(2,334)
(4,534)
(2,026,040)
117,638
(1,908,402)
Amir Bashir Ahmed | Khursheed A. Jamal | Murtaza Habib |
Chief Financial Officer | Chief Executive | Director |
9
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