SECOND QUARTER REPORT 2025
THE COVER STORY
The book illustrates the journey of our success beginning from very moment the farmer leaves his home to seeds his crop to the business avenues it opens to every achievement, at every step, a deep sense of responsibility has been reflected by our financial performance, manufacturing excellence, quality control measures and innovative approach to fuel the expectations of our stakeholders.
Table of Contents
Corporate Information 04
Financial Highlights 06
Directors' Report 08
Directors' Report (Urdu) 12
Auditors' Review Report 13
Condensed Interim Statement of Financial Position 14
Condensed Interim Statement of Comprehensive Income 16
Condensed Interim Statement of Other Comprehensive Income 17
Condensed Interim Statement of Cash Flows 18
Condensed Interim Statement of Changes in Equity 20
Notes to the Condensed Interim Financial Statements 21
Jama Punji Information
Corporate Information
Board of Directors
Mr. Syed Anwar Hussain Shahid Chief Executive Mr. Muhammad Aamir Beg Independent Director Ms. Faiza Iftikhar Independent Director Mr. Jawad ur Rehman Khan Independent Director Mr. Ghias-ul-Hasan CPL Nominee
Mr. Amjed Javed Aftab CPL Nominee
Mr. Saif-ur-Rehman CPL Nominee
Nomination Committee
Ms. Faiza Iftikhar Chairperson
Mr. Ghias-Ul-Hasan Member
Chief Financial Officer
Mr. Syed Muhammad Usman Afzaal
Company Secretary
Mr. Al-Yousuf
Head of Internal Audit
Mr. Kazim Ali
Legal Advisor
Siddiqui Bari Kasuri & Co.
Advocates & Corporate Legal Consultants 179/180-A, Scotch Corner, Upper Mall, Lahore
Phone No. 042-35758573-74, Fax No. 042-35758572
Bankers of the Company
Askari Bank Ltd. Soneri Bank Ltd.
PAIR Investment Company Ltd. MCB Bank Ltd.
Samba Bank Ltd. Bank Alfalah Ltd.
National Bank of Pakistan United Bank Ltd.
Habib Metropolitan Bank Ltd. Habib Bank Ltd. Parwaaz Financial Services Ltd. FINCA Bank Ltd. Pak China Investment Compnay Ltd. Allied Bank Ltd.
National Tax Number
0225972-9
Registered Address
125-B, Quaid-e-Azam Industrial Estate Kot Lakhpat, Lahore, Punjab, Pakistan Phone No. 042 35213491
Fax No. 042 35213490
E-mail: secretary@jsml.com.pk
Company Website
https://www.jsml.com.pk
Audit Committee
Mr. Jawad ur Rehman Khan Chairman
Mr. Muhammad Aamir Beg Member
Mr. Amjed Javed Aftab Member
Human Resource Committee
Mr. Muhammad Aamir Beg Chairman
Mr. Syed Anwar Hussain Shahid Member
Mr. Ghias-ul-Hasan Member
Risk Management Committee
Mr. Saif-ur-Rehman Chairman
Mr. Amjed Javed Aftab Member
Auditors
UHY Hassan Naeem & Co. (Chartered Accountants) 193-A, Shah Jamal Lahore, Pakistan
Phone No. 042 35403550
Fax No. 042 35403599
E-mail: info@uhy-hnco.com
Share Registrar
Corplink (Pvt.) Ltd.
Wings Arcade, 1-K Commercial Model Town, Lahore Phone No. 042 35916714, Fax No. 042 35869037
E-mail: shares@corplink.com.pk
Islamic Bankers of the Company
Al Baraka Bank (Pakistan) Ltd. MCB Islamic Bank Ltd.
Saudi Pak Industrial & Agricultural Investment Co. Ltd. Faysal Bank Ltd.
Sales Tax Registration Number
0409170300137
Mills
Jauharabad, District Khushab, Punjab, Pakistan
Phone No. 0454 720063-6,
Fax No. 0454 720880
04 | JSML 2nd Quarter 2025
JSML 2nd Quarter 2025 | 05
Rs. 5.66
Billion
Bottom line | |
Rs. 120.03 Million |
Gross Profit | |
12.13% |
Net Profit | |
2.12% |
Acid Test | |
0.41 Times |
Market Value Per Share | |
RS. 43.55 |
Price Earning | |
12.38 Times |
ROCE | |
4.97% Perent |
06 | JSML 2nd Quarter 2025
Key Performance Indicators
Rs. 5.66
Billion
Sales
37.13%
Rs. 686.39
Million
Gross Profit
(4.83%)
1.74
Times
Interest
Cover Ratio 16.88%
Rs. 120.03
Millions
Profit After Tax
(32.70%)
Rs. 12.38
Earning Per Share
(196.18%)
Rs. 277.25
Breakup Value Per Share
1.28%
Rs. 18.5
Billions
Total Assets
(29.43%)
Rs. 3,970.29
Millions
Cash used in Operating Activities
(24.85%)
JSML 2nd Quarter 2025 | 07
Directors' Report
Dear Members, Assalam-O-Alaikum
On behalf of the Board of Directors and myself, I am pleased to present before you the un-audited financial statements of the Company for the half year ended March 31, 2025, that has duly been reviewed by the external auditors.
Sector Overview
The crushing year 2024/25 brought a unique mix of challenges and opportunities for the sugar industry. Sugarcane cultivation decreased by 3.2%, with the sown area for 2024-25 remained at 1,210 thousand hectares compared to 1,250 thousand hectares last year. However, sugarcane production remained consistent at 83,500 million metric tons mainly due to increase in per acre yield. Unlike the previous years where the Government of Punjab sharply increased Minimum Support Price (MSP), during this crushing season of Yr.2024-25, government had not announced MSP thus leaving the cane price determination solely based on market mechanisms. Despite this significant change, a stable cane price was observed during the crushing season where farmers fetched an adequate return for their produce.
Operational Performance
The 2024-25 crushing season commenced on November 21, 2024-four days ahead of the previous season's start of November 25, 2023-demonstrating improved pre-season preparedness and operational agility. The mill operated for a total of 110 days during the current season, reflecting an extension of seven days over the prior year, indicative of enhanced operational efficiency and resource optimization. Despite absence of Minimum Support Price (MSP) for sugarcane, the market witnessed a pronounced and stable sugarcane price trend. The Company successfully navigated procurement challenges through timely deployment of targeted cane procurement initiatives and robust field management strategies. As a result, JSML achieved a recovery rate of 10.1%-the highest among all mills in the region. This milestone underscores the Company's operational resilience, strategic foresight, and unwavering commitment to continuous improvement in both efficiency and agricultural yield. It further reinforces JSML's leadership position within the industry and its capability to deliver superior performance amidst a dynamic market environment.
During the season, competition among regional mills resulted in higher than anticipated cane procurement costs. Nevertheless, the Company managed to crush 623,733 metric tons of sugarcane, a slight decrease compared to 657,997 metric tons in the previous year. Moving forward, JSML remains committed to optimizing milling efficiencies and securing high-quality varietal cane to sustain its competitive advantage and reinforce its position within the local sugar industry.
Following operational results for this crushing season have been achieved as compared to previous year.
Year Wise Performance | 2024-25 | 2023-24 |
Season start | 21-Nov-2024 | 25-Nov 2023 |
Season end | 10 March 2025 | 7 March 2024 |
Operational crushing capacity | 9,500 | 9,500 |
Effective working day | 85.11 | 89.48 |
Total crushing days | 110 | 103 |
Sugar Cane Crushed (MT) | 623,733 | 657,997 |
Sugar Recovery percentage | 10.104 | 9.85 |
Sugar Produced (MT) | 63,026 | 64,874 |
Molasses recovery (Percentage) | 3.729 | 4.02 |
Molasses produced (MT) | 23,258 | 26,450 |
08 | JSML 2nd Quarter 2025
Management is pleased to disclose that once again Company has paid hundred percent (100%) of its cane liability within twenty-four (24) hours of closing the crushing season 2024/25, a fact that has been published in local newspapers and the same has been intimated to the Cane Commissioner Office vide final SCR-II report dated 16-March-2025.
The Company reported revenue of Rs. 5,659 million for the current period, reflecting a robust increase from Rs. 4,127 million in the corresponding period ended March 31, 2024. This growth outpaced general sector trends and was primarily driven by strong domestic sugar sales supported by favorable market demand as well as the efficient execution of the export quota allocated to the Company. Despite the substantial revenue growth, slight decrease in gross profit was witnessed in comparison to corresponding period last year. This reduction in profitability was primarily attributed to the impact of higher taxation during the period.
Going forward, the Company anticipates improved contributions from the sale of carry-forward stock. Additionally, the Company remains vigilant in monitoring domestic and international market developments and is committed to navigate evolving dynamics through operational efficiency and strategic planning to sustain its financial performance.
Auditors' Report
Auditors of the company are satisfied with the financial performance and its statements thereby authorized issuance of condensed interim financial statements to its members.
No Material changes and commitment affecting the financial position of your Company have occurred between the end of financial reporting period and the date of Director's Report.
For & on Behalf of Board
Syed Anwar Hussain Shahid
Chief Executive
JSML 2nd Quarter 2025 | 09
10 | JSML 2nd Quarter 2025
2023-24 2024-25 2023ÞĖ25 2024ÞĖ 21 2024 vL07 2025agâ10 9,500 9,500 89.48 85.11 103 110 657,997 623,733 9.85 10.104 64,874 63,026 4.02 3.729 26,450 23,258 | JSML 2nd Quarter 2025 | 11 | ||||||||||||
657,997
623,733
12 | JSML 2nd Quarter 2025
Independent Auditors' Review Report
To the Members of Jauharabad Sugar Mills Limited
Report on Review of Condensed Interim Financial Statements
Introduction
We have reviewed the accompanying condensed interim statement of financial position of Jauharabad Sugar Mills Limited ("the Company") as at March 31, 2025 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the "interim financial statements"). Management is responsible for the preparation and presentation of this 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 financial statements based on our review. The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the quarter ended March 31, 2024 and 2025 have not been reviewed, as we are required to review only the cumulative figures for the six-month period ended March 31, 2025.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagement 2410, "Review of interim Financial Information Performed by the Independent Auditor of the entity". A review of 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 interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
The engagement partner on the review resulting in this independent auditor's review report is Mr. Ibne Hasan.
Place : Lahore Date: May 29, 2025
UDIN: RR2025103001tdFcGsip
JSML 2nd Quarter 2025 | 13
Condensed Interim Statement of Financial Position (Un-audited)
As at March 31, 2025
Un-audited Audited
Note
Mar 31
2025
Sep 30
2024
(Rupees in thousands)
Assets Non-current assets | ||||
Property, plant and equipment | 5 | 10,276,231 | 10,272,237 | |
Intangible assets | 29 | 35 | ||
Long term deposits | 5,257 | 5,257 | ||
Current assets | 10,281,517 | 10,277,529 | ||
Stores, spare parts and loose tools | 228,955 | 194,303 | ||
Stock-in-trade | 4,960,943 | 2,902,290 | ||
Loans and advances | 452,060 | 315,759 | ||
Trade debts - unsecured considered good | 1,754,054 | 53,028 | ||
Trade deposits and short term prepayments | 170,488 | 155,885 | ||
Other receivables | 22,221 | 22,221 | ||
Tax refunds due from the government | 222,549 | 186,811 | ||
Short term investments | 14,856 | 14,862 | ||
Cash and bank balances | 457,539 | 221,488 | ||
8,283,665 | 4,066,647 | |||
Total Assets | 18,565,182 | 14,344,176 | ||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore: | |||
May 28, 2025 | Chief Executive | Director | Chief Financial Officer |
14 | JSML 2nd Quarter 2025
Condensed Interim Statement of Financial Position (Un-audited)
As at March 31, 2025
Un-audited Audited
Note
Mar 31
2025
Sep 30
2024
(Rupees in thousands)
Share capital and reserves | |||
Authorized share capital | 700,000 | 700,000 | |
Share capital | 341,284 | 341,284 | |
Capital reserves: | |||
Share premium | 372,403 | 372,403 | |
Revenue reserves: | |||
Accumulated profits | 1,255,051 | 1,081,199 | |
Loan from sponsors | 1,383,836 | 1,383,836 | |
Revaluation surplus on property, | |||
plant and equipment -net of tax | 6 | 6,109,377 | 6,163,196 |
Total Equity Non-current liabilities | 9,461,951 | 9,341,918 | |
Liability against assets subject to finance lease | 435 | 790 | |
Deferred liabilities | 913,514 | 900,645 | |
Current liabilities | 913,949 | 901,435 | |
Trade and other payables | 782,158 | 1,177,345 | |
Unclaimed dividend | 1,794 | 1,797 | |
Current portion of: | |||
- Liability against assets subject to finance lease | 666 | 603 | |
Accrued mark-up | 160,174 | 117,886 | |
Short term borrowings - secured | 7 | 7,071,661 | 2,702,236 |
Provision for taxation | 172,829 | 100,956 | |
Contingencies and commitments | 8 | 8,189,282 | 4,100,823 14,344,176 |
18,565,182 | |||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore:
May 28, 2025
Chief Executive Director Chief Financial Officer
JSML 2nd Quarter 2025 | 15
Condensed Interim Statement of Comprehensive Income (Un-audited)
For the Half Year ended March 31, 2025
Six month period ended Three month period ended
Note
2025
March 31
2024 2025
March 31
2024
(Rupees in thousands)
Sales - net 9 | 5,659,732 | 4,127,353 | 2,892,531 | 1,671,309 | |
Cost of sales 10 | (4,973,346) | (3,406,131) | (2,392,702) | (1,157,649) | |
Gross profit Operating expenses: | 686,386 | 721,222 | 499,829 | 513,660 | |
Administrative expenses | (142,025) | (149,049) | (86,510) | (93,952) | |
Distribution cost | (31,916) | (9,931) | (28,370) | (6,271) (100,223) | |
(173,941) | (158,980) | (114,880) | |||
Operating profit | 512,445 | 562,242 | 384,949 | 413,437 | |
Finance cost | (295,853) | (387,346) | (239,089) | (334,146) | |
Other income | 3,052 | 15,214 | 7,893 | 18,125 | |
Profit before taxation and levy | 219,644 | 190,110 | 153,753 | 97,416 | |
Levy | (46,539) | (3,424) | (13,991) | 28,351 | |
Profit before taxation | 173,105 | 186,686 | 139,762 | 125,767 | |
Taxation 11 | (53,072) | (8,318) | (66,952) | (3,830) | |
Profit after taxation | 120,033 | 178,368 | 72,810 | 121,937 | |
Earnings per share (Rupees) Basic & diluted | 3.52 | 5.23 | 2.13 | 3.57 | |
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore:
May 28, 2025
Chief Executive Director Chief Financial Officer
16 | JSML 2nd Quarter 2025
Condensed Interim Statement of Other Comprehensive Income (Un-audited)
For the Half Year ended March 31, 2025
Six month period ended March 31
Three month period ended March 31
2025 2024 2025 2024
(Rupees in thousands)
Profit after taxation
Other comprehensive income for the period
Total comprehensive income for the period
178,368
-
120,033
-
120,033
178,368
121,937
-
72,810
-
72,810
121,937
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore:
May 28, 2025
Chief Executive Director Chief Financial Officer
JSML 2nd Quarter 2025 | 17
Condensed Interim Statement of Cash Flows (Un-audited)
For the Half Year ended March 31, 2025
Note
Six month period ended March 31
2025 2024
(Rupees in thousands)
Cash flow from operating activities | ||||
Profit before taxation and levy | 219,644 | 190,110 | ||
Adjustments for: | ||||
Depreciation | 5.1 | 160,760 | 151,818 | |
Amortization | 6 | 9 | ||
Gain on disposal of property, plant and equipment | (2,061) | - | ||
Provision for WPPF | 11,682 | 10,046 | ||
Finance cost | 295,853 | 387,346 | ||
466,240 | 549,219 | |||
Profit before working capital changes | 685,884 | 739,329 | ||
Working capital changes | ||||
Stores, spare parts and loose tools | (34,652) | 103,644 | ||
Stock in trade | (2,058,653) | (4,867,611) | ||
Loans and advances | (136,302) | (136,302) | ||
Trade debts - unsecured considered good | (1,701,027) | (433,920) | ||
Trade deposits and short term prepayments | (14,603) | (11,442) | ||
Trade and other payables | (405,444) | (372,581) | ||
(4,350,681) | (5,718,212) | |||
Cash used in operations | (3,664,797) | (4,978,883) | ||
Finance cost paid | (253,460) | (201,837) | ||
Tax and levy paid | (50,604) | (88,649) | ||
WPPF paid | (1,425) | (14,013) | ||
Net cash used in operating activities | (3,970,286) | (5,283,382) | ||
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore:
May 28, 2025
Chief Executive Director Chief Financial Officer
18 | JSML 2nd Quarter 2025
Condensed Interim Statement of Cash Flows (Un-audited)
For the Half Year ended March 31, 2025
Six month period ended March 31
2025 2024
(Rupees in thousands)
Cash flow from investing activities | |||
Addition to fixed assets | (173,318) | (267,335) | |
Long term deposits | - | (51,000) | |
Proceeds from sale of fixed assets | 10,625 | - | |
Net cash used in investing activities | (162,693) | (318,335) | |
Cash flow from financing activities | |||
Lease rentals paid | (398) | (1,669) | |
Dividend paid | (3) | (33,959) | |
Net cash used in financing activities | (401) | (35,628) | |
Net decrease in cash and cash equivalents | (4,133,380) | (5,637,345) | |
Cash and cash equivalents at the beginning of the period | (2,465,886) | (1,181,054) | |
Cash and cash equivalents at the end of the period
Cash and cash equivalents comprise of following statement of financial position amounts:
(6,599,266)
(6,818,399)
- Short term investments | 14,856 | 14,863 |
- Cash and bank balances | 457,539 | 373,652 |
- Short term borrowings | (7,071,661) | (7,206,914) |
(6,599,266) | (6,818,399) |
The annexed notes 1 to 15 form an integral part of these condensed interim financial statements.
Lahore:
May 28, 2025
Chief Executive Director Chief Financial Officer
JSML 2nd Quarter 2025 | 19
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