CORPORATE BRIEFING SESSION-2024
- Company Brief
- Operational Highlights
- Financial Highlights
- Future Prospect
- Question & Answers Section
Company Brief
Jauharabad Sugar Mills Limited is a Public Limited Company and has a privilege of being one of the pioneer sugar mills of Pakistan. Initially, in 1953, it was setup by THAL Development Corporation of Pakistan which was later privatized and was listed as of
December 1973 at Pakistan Stock Exchange LimitedThe Mill has been in operation for
the past 71 years.
Current sponsors acquired the Company in March 2013 by taking over the assets and liabilities, paying-off the old sponsors, injecting Rs. 1 billion as sponsors' loan (on an interest free basis)and renamed the Mill as Jauharabad Sugar Mills Limited after its hometown.
This takeover enabled the Company to settle previous bank /grower/creditor debts. A
major Balancing, Modernization and Replacement of Machinery has been carried out
thus enabling the Company to achieve stated capacity to 9,500 TCD of its currently operating crushing line-II, in addition to non-operating crushing line -I having stated capacity to 3,000 TCD. The name plate capacity of the mill is 12,500 TCD.
Company Brief
Company Name | Jauharabad Sugar Mills Limited |
Company Symbol on PSX | JSML |
Registered Office | 125-B, Quaid-e-Azam Industrial Estate, Kot |
Lakhpat, Lahore | |
Mills | Jauharabad, District Khushab |
Credit Rating | Long Term: BBB+ & Short Term: A2 |
[Agency: PACRA] | Outlook: Stable |
Authorized Capital | Rs. 700.000 Million |
Paid-up Capital [30-Sep-2024] | Rs. 341.285 Million |
Market Capitalization [30-Sep-2024] | Rs. 745.706Million |
Volume of Trade | 5.5 Million Number of Shares |
Name of Holding Company | Cane Processing (Pvt) Limited |
Shareholding of Associated Companies, | 63.66 Percent i.e. 21.726 Million Number of |
Undertakings and Related Parties | Shares |
NIT, Banks, Insurance Companies and Mutual | 2.96 Percent i.e. 1.011 Million Number of Shares |
Funds | |
Free Float | 35.41 Percent i.e. 12.086 Million Number of |
Shares | |
Contribution to National Exchequer | Rs. 1,497 Million [In Shape of Taxes] |
Operational Highlights
Descriptions | Units | FY2023/24 | FY2022/23 | YOY Change |
Working Days | Days | 103 | 103 | 0.00% |
Sugarcane Crushed | M. Tons | 657,997 | 651,476 | 1.00% |
Sugar Produced | M. Tons | 64,874 | 64,198 | 1.05% |
Sugar Recovery | Percentage | 9.86% | 9.86% | 0.00% |
Sugar Sold | M. Tons | 59,136 | 69,697 | (15.15%) |
Molasses Produced | M. Tons | 26,450 | 29,630 | (10.73%) |
Molasses Recovery | Percentage | 4.02% | 4.55% | (11.65%) |
Bagasse Produced | M. Tons | 191,819 | 190,740 | 0.56% |
V.F. Cake Produced | M. Tons | 19,740 | 19,360 | 1.93% |
Operational Highlights
160 | Crushing Days [Nos.] 10.6 | Sugar Recovery [%] | |||||||||||||||||||||
140 | 10.4 | ||||||||||||||||||||||
120 | 10.2 | ||||||||||||||||||||||
100 | 10 | ||||||||||||||||||||||
80 | |||||||||||||||||||||||
9.8 | |||||||||||||||||||||||
60 | |||||||||||||||||||||||
9.6 | |||||||||||||||||||||||
40 | |||||||||||||||||||||||
20 | 9.4 | ||||||||||||||||||||||
0 | 9.2 | ||||||||||||||||||||||
FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | ||||||||||
1,000,000 | Sugarcane Crushed [MT.] | 100,000 | Sugar Produced [MT.] | ||||||||||||||||||||
800,000 | 80,000 | ||||||||||||||||||||||
600,000 | 60,000 | ||||||||||||||||||||||
400,000 | 40,000 | ||||||||||||||||||||||
200,000 | 20,000 | ||||||||||||||||||||||
- | - | ||||||||||||||||||||||
FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | ||||||||||
Operational Highlights
40,000 | Molasses Produced [MT.] | 6 | Molasses Recovery [%] | |||||||||||||||||
35,000 | 5 | |||||||||||||||||||
30,000 | 4 | |||||||||||||||||||
25,000 | ||||||||||||||||||||
20,000 | 3 | |||||||||||||||||||
15,000 | 2 | |||||||||||||||||||
10,000 | 1 | |||||||||||||||||||
5,000 | ||||||||||||||||||||
- | 0 | |||||||||||||||||||
FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | |||||||
300,000 | Bagasse Produced [MT.] | 30,000 | V.F. Cake Produced [MT.] | |||||||||||||||||
250,000 | 25,000 | |||||||||||||||||||
200,000 | 20,000 | |||||||||||||||||||
150,000 | 15,000 | |||||||||||||||||||
100,000 | 10,000 | |||||||||||||||||||
50,000 | 5,000 | |||||||||||||||||||
- | - | |||||||||||||||||||
FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | FY18 | FY19 | FY20 | FY21 | FY22 | FY23 | FY24 | |||||||
Financial Highlights
Horizontal Analysis
Descriptions | FY2023/24 | FY2022/23 | YOY Change |
Sales - Net | 7,996,452 | 6,925,893 | 15.46% |
Cost of Sales | (6,987,145) | (5,851,908) | 19.40% |
Gross Profit | 1,009,306 | 1,073,985 | (6.02%) |
Selling and Distribution Expenses | (24,166) | (29,748) | (18.77%) |
Administrative and General Expenses | (237,693) | (211,487) | 12.39% |
Operating Profit | 915,688 | 826,375 | 10.81% |
Other Operating income | 168,240 | (6,375) | (2739.06%) |
Financial Cost | (949,094) | (560,136) | 69.44% |
(Loss)/ Profit Before Tax | (33,406) | 266,238 | (112.55%) |
Taxation | 35,286 | (54,005) | (165.34%) |
Profit After Tax | 1,880 | 212,233 | (99.11%) |
Earnings Per Share (Rs. /Share) | 0.06 | 6.22 | (99.04%) |
Financial Highlights
Vertical Analysis
Descriptions | FY2023/24 | % | FY2022/23 | % |
Rs in "000" | Rs in "000" | |||
Sales - Net | 7,996,452 | 100.00 | 6,925,893 | 100.00 |
Cost of Sales | (6,987,145) | (87.38) | (5,851,908) | (84.50) |
Gross Profit | 1,009,306 | 12.62 | 1,073,985 | 15.51 |
Selling and Distribution Expenses | (24,166) | (0.30) | (29,748) | (0.43) |
Administrative and General Expenses | (237,693) | (2.97) | (211,487) | (3.05) |
Other Operating Income/ (Expenses) | 168,240 | 2.10 | (6,375) | (0.09) |
Operating Profit | 915,688 | 11.45 | 826,375 | 11.93 |
Financial Cost | (949,094) | (11.87) | (560,136) | (8.09) |
(Loss)/Profit Before Tax | (33,406) | (0.42) | 266,238 | 3.84 |
Taxation | 35,286 | 0.44 | (54,005) | (0.78) |
Profit After Tax | 1,880 | 0.02 | 212,233 | 3.06 |
Future Prospect
Going forward, the industry has entered the crushing year 2024/25 with minimum carryforward stocks, lack of working capital, higher cost of funds, lower yield, and sucrose recovery. As per the Ministry of National Food Security and Research on Pakistan's sugar, the forecast is of 6.8 million tons of sugar production for crushing year 2024/25 along with negligible carry forward sugar. The current production will be sufficient to meet the historic annualized domestic demand of the country. Strategic reserves and pilferage/ market distortion factors are not considered which may create surplus of sugar that may needs to be exported.
The Company aligned with its vision to improve mills efficiency is continuously investing in BMR and maintenance of the plant. Going forward the Company has planned to focus on corporate and retail segment under its marketing strategy. To bring diversification in revenue stream, the Company is focusing to enhance share of byproducts to topline and is exploring avenues to export surplus power in absence of EPA with FESCO.
In a long run, the management is focusing to maximize returns on shareholders' equity along with growth of the Company.
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