Mehran Sugar Mills LimitedPSX: MRNS

Transmission of Quaterly Report for the period ended June 30, 2025

Jul 30, 2025 at 10:20 AM UTC · Issued by Mehran Sugar Mills Limited

Innovating Agriculture

Quarterly Report June 2025

mehransugar.com

Company Information

Board of Directors

Mr. Mohammed Kasim Hasham Chairman Mr. Mohammed Hussain Hasham

Mr. Iftikhar Soomro Independent Director

Mr. Hasan Aziz Bilgrami Independent Director Mr. Khurram Kasim

Mr. Ahmed Ebrahim Hasham Chief Executive Officer Mrs. Anushey A. Hasham

Management Team

Mr. Ahmed Ebrahim Hasham Chief Executive Officer Mr. Muhammad Hanif Aziz Chief Financial Officer Mr. Ubaid-ur-Rehman Technical Director

Mr. Ali Hassan GM Finance & Company Secretary

Board Committees Audit Committee

Mr. Hasan Aziz Bilgrami Chairman

Mr. Khurram Kasim Member

Mrs. Anushey A. Hasham Member

Human Resource & Remuneration Committee

Mr. Iftikhar Soomro Chairman Mr. Ahmed Ebrahim Hasham Member Mr. Khurram Kasim Member

Executive Committee

Mr. Ahmed Ebrahim Hasham Chairman Mr. Muhammad Hanif Aziz

Mr. Ubaid-ur-Rehman Mr. Ali Hassan

Auditors

Grant Thornton Anjum Rahman Chartered Accountants

Legal Advisor

Hafeez Pirzada Law Associates KMS Law Associates

Share Registrar

CDC Share Registrar Services Limited CDC House, 99-B, Block B S.M.C.H.S,

Main Shahrah-e-Faisal, Karachi Tel: (92-21) 111-111-500

Bankers

Bank Al Habib Limited Meezan Bank Limited MCB Bank Limited

Bank Islami Pakistan Limited Bank Alfalah Limited

Habib Metropolitan Bank Ltd Bank of Punjab Limited Faysal Bank Limited

Registered Office

Executive Tower, Dolmen City,

14th Floor, Block-4, Marine Drive, Clifton, Karachi-75600

Tel: (92 21) 35297814-17

Fax: (92 21) 35297818, 35297827

msm@mehransugar.com https://www.mehransugar.com

Mills

Tando Adam Road, Distt. Tando Allahyar. Tel: (022) 3414501, 3414502, 3414503

Fax: (022) 3414504

Mehran Sugar Mills Ltd. 1

Directors' Report

On behalf of the Board of Directors, I am pleased to present the financial and operational performance of the company for the Period ended June 30, 2025. The company has demonstrated resilience with improved turnover and cost efficiency. Our diversified balance sheet has allowed the company to maintain profitability.

Operational Highlights	June 2025	June 2024	Change
Crushing Volume (M. Tons)	710,803	902,931	(21.3%)
Sucrose Recovery (%)	10.22%	10.79%	(0.57%)
Sugar Production (M. Tons)	72,643	97,384	(25.4%)
Molasses Production (M. Tons)	33,247	40,809	(18.5%)

Key Observations:

Lower crushing volumes were largely driven by an unprecedented reduction in sugarcane yields. The lower yields were largely driven by severe heat waves which is largely a result of climate change. This was despite a larger acreage of sugarcane plantation.
Sucrose recovery dropped (10.22% vs. 10.79% last year) due to adverse climatic conditions and non-variety cane cultivation, a trend of lower sucrose recovery observed industry-wide, which ultimately increased production costs.
Molasses prices declined by 18% due to weak export demand and competitive ethanol prices globally.
Bagasse Sales Improvement - Higher realizations partially offset lower volumes.
Other Income improvement - increased to Rs. 1.007 Billion vs. Rs. 804 Million due to a prudent investment strategy and timely capital allocation.

Unicol Limited Performance - Profit contribution improved to Rs. 119.42 M as compared to the loss of Rs 354.24 M same period last year. We are confident that Unicol has stabilized its financial and operational structure which took time to absorb after the acquisition of a sugar mill and unprecedented hike in borrowing rates.

Financial Performance	June 2025	June 2024	Change
Turnover (Rs. '000)	13,043,397	8,963,174	+46%
Gross Profit (Rs. '000)	1,471,460	1,227,762	+20%
Gross Profit Margin (%)	14%	16%	(2%)
Finance Cost (Rs. '000)	386,997	1,010,365	(62%)
Profit Before Tax (PBT) (Rs. '000)	1,645,388	305,645	+438%
PBT Margin (%)	15%	4%	+11%
Net Profit After Tax (NPAT) (Rs. '000)	1,249,647	298,355	+319%
NPAT Margin (%)	12%	4%	+8%
Earnings Per Share (EPS) - Rs.	16.68	3.98	+319%

Key Financial Insights:

Turnover Growth (+46%) - Driven by higher sugar sales volume, including carryover stock.
Gross Margin Contraction (14% vs. 16%) - Impacted by low volume of production causing low absorption of fixed cost thus increase in the unit cost of production, reduced sucrose recovery, weak molasses realization and higher overheads due to inflationary effects.
Reduced Finance Costs (-62%) - Due to lower seasonal borrowing but major reason being the declining KIBOR rates and improved working capital management.
Stable Bottom Line (NPAT +8%) - Supported by improvement in sugar sales volume, cost rationalization, better bagasse pricing, and lower interest expenses.
Industry & Market Outlook
Sugarcane Pricing & Supply Challenges: Despite a 5-10% higher cultivation area, yields dropped by 15-20%, pushing cane prices much higher as compared to the budgeted price.
Sugar Production Costs Rising: Due to lower sucrose recovery, higher taxes and challenges in fixed cost absorption, this unexpected scenario has emerged.
Directors' Report
Deregulation Impact: No government-mandated support price of sugar cane; thus a market-driven pricing mechanism was initiated, which worked well. Farmers were paid competitive pricing on prompt basis as mills had to compete to procure cane.
Stocks: National sugar production of 5.8 million M.T plus carryover stocks are expected to last till mid November 2025 by which time mills would also start crushing, therefore it is expected that country would not face any shortage of commodity.
Future Outlook & Strategic Focus
Cost Optimization - Leveraging lower interest rates to reduce financing costs further, this would benefit Unicol as well.
Supply Chain & Yield Improvement - Investing in high-quality cane seeds and agricultural support to enhance yields.
By-Product Pricing Recovery - Ethanol & molasses prices in the upcoming quarters are expected to decline due to the withdrawal of GSP status. However for next year lower feedstock pricing should allow lower working capital and thus reduce the finance cost considerably.
Market Equilibrium - Advocating for complete deregulated sugar pricing to ensure sustainable profitability.

Unicol Limited Performance

It's heartening to note that Unicol Limited is back in positive zone during the current period after a difficult last year.

Looking ahead, we expect both ethanol and sugar operation to operate smoothly in the last quarter of the year. The Company had secured molasses and sugarcane at reasonable prices. We expect improved selling prices for sugar in the next few months, which should support the bottom line. The withdrawal of GSP status will not affect Unicol significantly as we are in a short ethanol market and thus demand from other regions will compensate lower European demand till next season. Unicol's CO2business also performed very well and contributed significantly to the bottom line.

The gradual reduction of KIBOR rates is a huge advantage for Unicol and should help stabilize the company as it carries long term loans on its new acquisition. We are cautiously optimistic that Unicol will be able to resume its long term history of sustainable profitability, thus adding value to us and aligning with our objective of a diversified balance sheet.

Future Outlook

Despite a totally deregulated sugarcane market we are pleased to see plantation trends indicate a rising trajectory, and we anticipate improved output during the 2025-26 season. We see a minimum 10 percent increase in sugar production next year which could increase further if yields also normalise. Our investments in developing sugarcane through the provision of quality cane seeds and related inputs on agricultural loans are expected to yield positive results. Our cane development progress also include

introduction of latest farming technology such as e-survey satellite surveys and use of drones, pneumatic planters and mulchers.

The gradual reduction in interest rates is a positive development, as it will help lower finance costs during the year, thereby reducing the cost of sugar production.

As previously mentioned, the government's favorable response on sugarcane/sugar deregulation is a step in the right direction. However, a complete de-regulation is essential for long term improvement in the sector. We are proud to state that sugar in Pakistan sells at prices below world market, and thus, we as an industry have become globally competitive. Even with zero tariffs prices today are 15-20 percent below imported white sugar prices.

Conclusion

After a challenging financial year 2024, the financial year 2025 seems to be progressing as planned. Our diversified balance sheet has allowed us to post strong results from investments. We expect improved results from the sugar operations in the remaining period of the year thus showing continuity of profits, and are pleased to see stabilization at Unicol, which we are confident is an excellent long term investment.

For and on behalf of the Board of Directors

Ahmed Ebrahim Hasham Khurram Kasim Chief Executive Officer Director

July 28, 2025

یک ےبعشنکیل،ںیہمدقکیاںیمتمستسردںایسیلاپتبثمپ ینیچ/ےنگ یکتموکح ےک ںویڈنم یملاع ینیچ ںیمناتسکاپ ۔ےہ یرورض شیلوگیر یڈ لمکم ےیل ےک یرتہب یتدم لیوط ۔ےہیترکرہاظوکتقباسمیرامہوج،ےہیہروہتخورفپتمیقمکیھبباںیمےلباقم :ہیماتتخا یرامہ۔ےہیہروہتفرشیپقباطمےکفادہاےئلےک2025دعبےکلاسیلاملکشمےک2024 ںیم یہام ہس ےلگا ےس زنشیپٓا رگوش رتہب ۔ںیہ ےید جئاتن رتہب ےن ٹیش سنلیب عونتم وکےلصیفےکیراکہیامرسیتدملیوطےرامہماکحتسااکلوکینویہکبج،ےہعقوتیکیرتہبدیزم ۔اگےشخبماکحتسا

فرطزا زرٹکیرئاڈفٓاڈروب

مشاہمیہاربادمحا رسیفٓاویٹکیزگیافیچ

ساقمرخ رٹکیرئاڈ

2025یئالوج28-یچارک

ٹروپر ز/ٹ رٹکی sرئ اڈ

نیعت ےکںوتمیقیک ینیچ ےیل ےک ےنانبینیقی وک عفانمرادیئاپ : نزاوت ںیمٹیکرام ۔انرکمتخوکتلخادمیتموکحںیم

:یگدرکراکیکڈٹیمللوکینوی

تدم ہدوجوم دعب ےک تالکشم یک لاس ہتشزگ ڈٹیمل لوکینوی ہک ےہ تاب دنئٓا شوخ

۔ےہیئگٓاھ رہاہےسناصقنںیم یکےنگرواسالومےنینپمک۔ےہعقوتیکےنہررتہبےکزنشیپٓاینیچروالونیاںیمیہامہسہدنئٓا

عفانمےسیرتہبںیمںوتمیقیکینیچںیمہامدنچےلگا ۔ایانبینیقیوکیرادیرخپںوتمیقلوقعم

ںیہنرثاہدایزپلوکینویےنوہمتختیثیحیکیپسیایج ۔یگےلمددمںیمئ ےنرکرتہبدیزموک ںیمبلطےسٹیکرامیرسودںیمےلباقمےکٹیکرامپرویہجویکسج۔اگےڑپ ہاوخرطاخںیمعفانمیھبےنتخورفیکڈئاسکٓایئاڈنبراک ےکلوکینویےہعقوتمہفاضا ۔ےہےلاڈہصح

ہدئافاڑبکیاےیلےکلوکینوی،مکجیردتبںیم(

ررفٓاکنیبرٹنایچارک(KIBOR دیماپمہ۔ںیمرظانتےکںوضرقیتدملیوطپلمرگوشیئگیدیرخیئنپروطصاخےہ ٹیشسنلیبعونتمےرامہےسسج،اگےھکرلاحبوکتیاوریکعفانمرادیئاپینپالوکینویہکںیہ ۔یگےلمتیوقتوکدصاقمےک

: ہمانرظنماکلبقتسم

سلسم ںیم تپھک نکیل ،ےہ عقوت یک یرتہب ںیم راوادیپ ںیم نزیس2025-26 یعرز روا ماسقا یرایعم ۔ںیہ ےتکس رک دودحم وک راوادیپ لئاسم ےک یبایتسد یک یناپ روا ہفاضا ۔ںیہ یتکس ےد جئاتن تبثم ںیششوک یک ےناھڑب راوادیپ یک ےنگ ےس یمہارف یک ںوضرق -یا ںیم نج ںیہ ےہررک لامعتسا اک یجولانکیٹ دیدج مہ ےئل ےک یرتہب دیزم ںیم راوادیپ

۔ںیہلماشزرچلامروازرٹنالپکٹیموین،لامعتسااکزنورڈ،ےورسٹئلنیس،ےورس

مک دیزموکتگالیراوادیپ ہک وجےہتفرشیپتبثم کیا حرشیتوہمکجیردتبیکدوس ۔یگوہنواعمںیمےنرک

ںوضرق یتدم مک ہجو یک یرتہب سا (-62%) مک ںیم تاجارخا گنسن.... انف 

۔ےہٹنمجنیملٹپیکگنکرورتہبروامکںیم ر KIBOR ہوالعےکمکںیم

یک ینیچ یئگ یکتخورف ہفاضاہی(npat +8%) عفانمسکیٹزادعب مکحتسم یکمکںیمتاجارخایتایلامرواںیتمیقرتہبیکساگب،ہفاضاںیمرادقم ۔اوہنکممتلودب

:رظنکیاپتالاحےکٹیکرامرواتعنصیکینیچ

ےکےفاضادصیف10ےس5ںیمےبقرےکیراکتشاک: جنلیچےکیئالپسرواںیتمیقیکےنگ ہدرک ےطںیتمیق یک ےنگ ےس ہجویک سج ،یہر مک کتدصیف 20 ےس 15 راوادیپ دوجواب ۔ںیئگھڑبںیمےلباقمےکٹجب

( زسکیٹ( تالوصحم ،مکںیمیروکیرزورکس: ہفاضاںیمتگالیراوادیپیکرگوش ہی ےس ہجو یک ںویراوشد ںیم ےنرک بذج وک ٹساک ڈسکف روا ہفاضا ںیم ۔یئوہادیپلاحتروصعقوتمریغ

ںیتمیق ٹیکرام یتقباسم ےس ےنوہ متخ نیعت یراکرس اک ںوتمیق یک ےنگ: شیلوگیر یڈ نایمردےکںولمرواںیلمںیتمیقیتقباسموکںوناسک۔ںیہربایماکوج،ںیئوہفراعتم ۔ایگاھکیدناحجراکےلباقمےئلےکےندیرخانگ

ےکرئاخذےکلاسےلھچپرواراوادیپیکینیچنٹکرٹیمنیلم5.8ںیمکلم : رئاخذ کتتقوسا،اگوہںیہنراکشاکمکیکینیچکت2025ربمونہکےہعقوتہیھتاس ۔یگںیدرکعورشگنشرکںیلم

:یلعتمکحیرامہرواہمانرظنماکلبقتسم

ںیمتاجارخا یتایلام مہ ےعیرذ ےک مظنیتایلام رتہب : انرک وباقوک تگال ۔انرکششوکیکمکدیزم

رایعمٰیلعایکےنگ ےیلےکےناھڑبراوادیپ : یرتہبںیمراوادیپروانیچیئالپس 

۔انرکیراکہیامرسےئلےکےفاضاںیمراوادیپرواانارکفراعتمماسقایک

ںیمںویہامہسیلگاںیمںوتمیقیکزسالومروالونیھ ا : لاحبیکں�یکتاعونصمینمض ۔ےہانوہمتخاکیپسیایجہجویکسج،ےہناکمااکمکدیزم

ٹروپر ز/ٹ رٹکی sرئ اڈ

یک یلمعتمکحیک یراکہیامرسںیمجنیچسکیاکاٹسا ہفاضاںیمندمٓا رگید  ۔یئوہیندمٓاےپوربرا1.007ںیمےلباقمےکیندمٓاےپورنیلم804ےسہجو

ےلباقمےکناصقنےکےپورنیلم354.24 ےکلاسہتشزگ: یگدرکراکیکڈٹیمللوکینوی 

ہک ےہ نانیمطا ںیمہ ۔اوہ لصاح عفانم اک ےپور نیلم 119.42 لاس سا ںیم

رگوشںیمسجےہایلرکمکحتسموکتالماعملنشیپٓاروایتایلامےنپاےنلوکینوی یگدوجومیک دوسحرشنیرتدنلبپروطصاخاگلرورضتقوھچکدعبےکےندیرخ لم ۔ںیم

ہزئاجاکیگدرکراکیلام

لیدبت	2024 نوج	2025 نوج	ہزئاجیتایلام
+46%	8,963,174	13,043,397	ںیمںورازہےپور	تخورفیعومجم
+20%	1,227,762	1,471,460	ںیمںورازہےپور	عفانمصلاخ
(2%)	16%	14%	ںیمںورازہےپور	حرشیکعفانمصلاخ
(62%)	1,010,365	386,997	ںیمںورازہےپور	تاجارخایتایلام
+438%	305,645	1,645,388	ںیمںورازہےپور	عفانمسکیٹزالبق
+11%	4%	15%	ںیمدصیف	حرشیکعفانمسکیٹزالبق
+319%	298,355	1,249,647	ںیمںورازہےپور	عفانمسکیٹزادعب
+8%	4%	12%	ںیمدصیف	حرشیکعفانمسکیٹزادعب
+319%	3.98	16.68	ےپور	یندمٓاصصحیف

:تامولعمہدیچہدیچےسےلاوحےکجئاتنیتایلام

ںیم رادقم ہدایز یک ینیچ لاس سا ، ہجو یک (+46%) ہفاضا ںیم رووا نرٹ ۔ےھتلماشیھبرئاخذےکلاسےلھچپںیمسجتخورف

ےسہجویکسجمکںیمراوادیپہجویک(16%ہلباقمب14%(مکںیمعفانمصلاخ روا مکںیمںوتمیقیکسالوم،مکںیمیروکیرزورکس،اوہہفاضاںیمتگالنٹیف ۔ںیہلماشہفاضاںیمتاجارخثعابےکرزطارفا

ےیلےکیہامہسیرسیتیلاوےنوہمتخوک2025نوج30ےسبناجیکزرٹکیرئاڈفٓاڈروبںیم ۔ںوہاہررکسوسحمیشوخےئوہےترکشیپیگدرکراکلنشیپٓاروایلامیکینپمک

وک تگال یراوادیپ روا ہفاضا ںیم تخورف ینپا ےن ینپمک دوجواب ےک تالاح قفاومان ےنھکر رارقربعفانمانپاینپمکثعابےکیراکہیامرس عونلا فلتخم یرامہ ۔ایکلورٹنک ۔یئوہبایماکںیم

لیدبت	2024 نوج	2025 نوج	ہزئاجلنشیپٓا
(21.3%)	902,931	710,803	(نٹکرٹیم(گنشرک
(0.57%)	10.79%	10.22%	یروکیرزورکس
(25.4%)	97,384	72,643	(نٹکرٹیم(راوادیپیکینیچ س یل
(18.5%)	40,809	33,247	(نٹکرٹیم(راوادیپیکس وم

:تادہاشممہا

یک ےنگ ہکنالاح ،یہر مک ںیم یبایتسد یک ےنگ ہجو یک مک ںیم جح ے ک گنشرک  یکسجیئوہعقاومکںیمراوادیپڑکیایفنکیل۔اھتاوہہفاضاںیمےبقرےکیراکتشاک اھتانوہاکیمرگدیدشثعابےکلیدبتیتایمسومہجویداینب

ساںیمےلباقمےک10.79% لاسہتشذگیروکیرزورکس( مکںیمیروکیرزورکس  تشاکیکماسقایرایعمریغروالیدبتیتایمسومیھبہجویکسا(یہر10.22%لاس ہی یلاوےنوہںیمیروکیرزورکسرواایگ اھکید ںیمیرٹسڈنایروپ ناحجرہییھت ۔ینبببساکےفاضاںیمتگالیراوادیپ،مک

پحطسیملاعروامکںیم بلطیدمٓاربہجویکسج،یئوہمک18%ںیمںوتمیقیکسالوم  ۔یھتٹوارگںیمںوتمیقیکلونیھ ا

جحےنےفاضاںیمںوتمیقطسوادوجوابےکمکںیم جحیرتہبںیمںوتمیقیکساگب  ۔ایکاروپکتدحھچکوکمکیک

ٹروپر ز/ٹ رٹکی sرئ اڈ

ASSETS	Note	Jun 30, 2025 Un-audited Rupees	Sep 30, 2024 Audited Rupees
NON-CURRENT ASSETS Property, plant and equipment	4	2,279,884,634	2,356,445,597
Right-of-Use-Assets Long term receivable Long term investment Long term deposits	5	67,386,625 -1,246,216,103 3,436,400	129,536,144 -1,126,416,293 3,436,400
CURRENT ASSETS		3,596,923,762 3,615,834,434
Biological assets		3,121,397	17,414,250
Stores and spare parts		218,507,197	179,009,795
Stock-in-trade		2,439,013,534	2,599,018,609
Trade debts		155,647,863	479,404,658
Loans and advances		268,259,044	134,311,102
Trade deposits and short term prepayments		10,235,541	62,803,496
Other receivables		-	-
Short term investments		1,694,121,049	627,215,350
Taxation - net		-	840,978
Cash and bank balances		194,926,061	88,406,886
		4,983,831,686 4,188,425,124
TOTAL ASSETS		8,580,755,448 7,804,259,558
EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES
Authorised capital		1,500,000,000 1,500,000,000
Issued, subscribed and paid-up capital		749,276,090 749,276,090
Reserves		3,206,180,676	2,031,461,139
NON-CURRENT LIABILITIES		3,955,456,766 2,780,737,229
Long-term financing - secured		228,923,453	289,780,120
Lease Liabilities		36,714,691	76,471,242
Market committee fee payable		49,931,950	57,000,808
Deferred liabilities		2,190,413	3,520,561
Deffered Income-Government Grant		60,399,316	75,704,286
Deferred taxation		556,762,035	542,686,195
CURRENT LIABILITIES		934,921,858 1,045,163,212
Trade and other payables		1,074,615,029	559,473,596
Unclaimed dividend		30,850,849	26,816,767
Accrued mark-up		55,331,005	266,142,380
Short term borrowings - secured		2,074,791,306	2,680,118,028
Provision for market committee fee		7,108,029	-
Current portion of non-current liabilities		141,360,797	188,707,371
Taxation - net		6,778,223	-
Sales Tax / F.E.D / S.E.D. payable		299,541,586	257,100,975
CONTINGENCIES AND COMMITMENTS	6	3,690,376,824 3,978,359,117 - -
TOTAL EQUITY AND LIABILITIES		8,580,755,448 7,804,259,558

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

as at June 30, 2025

(155,903,310)	(84,862,644)	(30,263,008)	(24,173,204)
(307,383,118)	(262,059,468)	(109,002,032)	(91,558,281)
(102,783,515)	(15,208,327)	(45,901,895)	(8,312,555)
1,007,194,363	804,614,247	272,161,867	191,658,893

Nine months ended Quarter Ended

	Jun 30, 2025 Rupees	Jun 30, 2024 Rupees	Jun 30, 2025 Rupees	Jun 30, 2024 Rupees
Turnover	13,043,397,197	8,963,173,967	5,059,404,026	5,047,696,044
Less: sales tax / federal excise duty	(2,308,481,314)	(1,190,464,712)	(925,772,553)	(772,110,242)
Turnover - net	10,734,915,883	7,772,709,255	4,133,631,473	4,275,585,802
Cost of sales	(9,263,455,432)	(6,544,947,412)	(3,379,500,746)	(3,990,064,575)
Gross profit	1,471,460,451	1,227,761,843	754,130,727	285,521,227
Distribution costs
Administrative expenses
Other operating expense
Other operating income
	441,124,420	442,483,808	86,994,932	67,614,853
Operating profit	1,912,584,871	1,670,245,651	841,125,659	353,136,080
Share of profit from associates - net	119,799,810	(354,235,333)	103,962,667	(354,706,619)
Finance costs	(386,996,562)	(1,010,365,219)	(142,114,445)	(474,867,033)
Profit before taxation and levies	1,645,388,119	305,645,099	802,973,881	(476,437,572)
Final taxes	(88,492,100)	(15,151,638)	(50,897,417)	-
Minimum tax	-	-	45,366,397	7,951,009
Profit before income tax	1,556,896,019	290,493,461	797,442,861	(468,486,563)
Taxation
-Current
-Deferred
Taxation	(307,248,873)	7,861,434	(293,221,058)	57,041,276
Net profit for the period	1,249,647,146	298,354,895	504,221,803	(411,445,287)
Other Comprehensive Income	-	-	-	-
Total Comprehensive Income	1,249,647,146	298,354,895	504,221,803	(411,445,287)
Earnings per share - Basic and diluted	16.68	3.98	6.73	(5.49)

(293,173,033)		(97,158,866)		(271,707,735)		-
(14,075,840)		105,020,300		(21,513,323)		57,041,276

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

for the period ended June 30, 2025 (un-audited)

	Issued, subscribed
	and paid-up capital
				Rupees
Balance as at October 01, 2023 (Audited)	749,276,090	63,281,250	85,000,000	2,977,852,332	4,040,389	3,130,173,971	3,879,450,062
Final dividend for the year ended
September '30, 2023 @ Rs.3 per share				(224,782,827)		(224,782,827)	(224,782,827)
Interim dividend for the year ended				(74,927,609)		(74,927,609)	(74,927,609)
September 30, 2024 @ Re.1 per share
Net profit for the period	-	-	-	298,354,895	-	298,354,895	298,354,895
Other comprehensive income	-	-	-	-	-	-	-
Total comprehensive income	-	-	-	298,354,895	-	298,354,895	298,354,895
Balance as at June 30, 2024 (Un-Audited)	749,276,090	63,281,250	85,000,000	2,976,496,791	4,040,389	3,128,818,431	3,878,094,521

R e s e r v e s					Total Equity
Capital	Revenue		Actuarial gain on defined benefit plan	Sub-Total
Share Premium	General Reserve	Unappropriat-ed Profit

Balance as at October 01, 2024 (Audited) 749,276,090 63,281,250 85,000,000 1,879,115,144 4,064,746 2,031,461,139 2,780,737,229

Interim dividend for the year ending September 30, 2025 @ Re.1 per share

- - -

(74,927,609) -

(74,927,609) (74,927,609)

1,249,647,146

Net profit for the period Other comprehensive income

Total comprehensive income - - - 1,249,647,146 - 1,249,647,146 1,249,647,146

Balance as at June 30, 2025 (Un-audited) 749,276,090 63,281,250 85,000,000 3,053,834,681 4,064,746 3,206,180,676 3,955,456,766

The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

for the period ended June 30, 2025 (un-audited)

	Jun 30, 2025 Rupees	Jun 30, 2024 Rupees
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	1,645,388,119	305,645,099
Adjustment for:
Depreciation
Operating fixed assets	123,920,950	123,561,014
Right of use assets	37,947,403	39,503,039
Ammortization of deferred income - government grant	(17,040,366)	(18,513,920)
Share of profit from associates	(119,799,810)	354,235,333
Gain on disposal of operating fixed assets and right-of-use assets	(5,100,000)	(3,000,000)
Finance costs	386,996,562	1,010,365,219
Provision for market committee fee	7,108,029	9,029,320
Loss on disposal of lease farm	974,437	-
Realised gain on investments at FVTPL	(287,609,946)	(441,659,920)
Unrealised gain on remeasurement of investments at FVTPL	(347,985,033)	(248,457,048)
Working capital changes	934,759,378	(5,442,988,905)
	714,171,604	(4,617,925,868)
Gratuity paid	(1,330,148)	(428,703)
Taxes paid	(374,045,932)	(140,209,778)
Finance costs paid	(577,000,123)	(526,333,002)
Market committee fee paid	(5,813,042)	(6,189,153)
Net cash generated from / (used in) operating activities	1,401,370,477	(4,985,441,405)
CASH FLOWS FROM INVESTING ACTIVITIES
Fixed capital expenditure	(47,359,987)	(102,225,554)
Proceeds from disposal of operating fixed assets and right-of-use assets	5,100,000 -	3,000,000 -
Short term investments made	(3,904,137,400)	(4,170,707,261)
Proceeds from disposal of short-term investments	3,472,826,680	4,631,243,965
Dividend received	-	24,999,999
Net cash (used in) / generated from investing activities	(473,570,707)	386,311,149
CASH FLOWS FROM FINANCING ACTIVITIES
Long term financing - net	(110,536,637)	(77,793,921)
Lease rentals paid	(34,523,710)	(49,492,831)
Short term borrowings - net	(605,326,722)	5,121,296,544
Dividend paid	(70,893,527)	(296,272,492)
Net cash (used in) / generated from financing activities	(821,280,596)	4,697,737,300
Net increase / (decrease) in cash and cash equivalents	106,519,175	98,607,043
Cash and cash equivalents at beginning of the period	88,406,886	46,795,976

Cash and cash equivalents at end of the period 194,926,061 145,403,019 The annexed notes form an integral part of these unconsolidated condensed interim financial statements.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

UNCONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

for the period ended June 30, 2025 (un-audited)

THE COMPANY AND ITS OPERATIONS
1. Mehran Sugar Mills Limited (the Company) was incorporated in Pakistan as a public limited company on 22 December 1965 under the Companies Act, 1913 and then under the Companies Ordinance, 1984, which is now superseded by the Companies Act, 2017 (the Act). The shares of the Company are quoted on Pakistan Stock Exchange. The Company is principally engaged in the manufacturing and sale of sugar and its by-products. The registered office of the Company is situated at 14th floor, Dolmen City Executive Tower, Marine Drive, Block 4, Clifton, Karachi. The mill of the Company is located at District Tando Allahyar, Sindh.
2. These are the separate financial statements of the Company in which investment in subsidiary is accounted for on the basis of cost less impairment losses, if any and investments in associates are accounted under equity method less impairment, if any.
STATEMENT OF COMPLIANCE
1. These unconsolidated condensed interim financial statements have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as 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.
2. These unconsolidated condensed interim financial statements are unaudited as required under section 237 of the Act.
3. These unconsolidated 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.
ACCOUNTING POLICIES, ESTIMATES AND JUDGEMENTS

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

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

for the period ended June 30, 2025 (un-audited)

		June 30 2025 (Un-audited)	September 30 2024 (Audited)
4 PROPERTY, PLANT AND EQUIPMENT	Note	Rupees	Rupees
Operating fixed assets	4.1	2,098,259,124	2,204,325,604
Capital work-in-progress (CWIP)	4.2	181,625,510	152,119,993
		2,279,884,634	2,356,445,597
4.1 Operating fixed assets
Book value at the beginning of the period / year		2,204,325,604	2,209,371,259
Additions during the period / year		17,854,470	164,044,082
		2,222,180,074	2,373,415,341
Disposal during the period / year Depreciation charged during the period / year
		(123,920,950)	(169,089,737)
		2,098,259,124	2,204,325,604

Opening balance

Additions during the period / year

Transfers to operating fixed assets

Transfers to Stores and spares

Closing balance

4.2 Capital work-in-progress			Rupees
Civil works	17,262,968	6,077,701	-	-	23,340,669
Plant, machinery and equipment	134,857,025	23,427,816	-	-	158,284,841
June 30, 2025	152,119,993	29,505,517	-	-	181,625,510

September 30, 2024	188,580,952	132,172,836	(121,587,126)	(47,046,669)	152,119,993
				June 30	September 30
				2025 (Un-audited)	2024 (Audited)
5 LONG-TERM INVESTMENTS			Note	Rupees	Rupees
Subsidiary			5.1	-	-
Associates			5.2	1,246,216,103	1,126,416,293
				1,246,216,103	1,126,416,293
5.1 Subsidiary
Mehran Energy Limited				42,596,739	42,596,739
Provision for impairment				(42,596,739)	(42,596,739)
				-	-

5.2 Associates Unicol Limited UniEnergy

Limited

Total

June 30, 2025 (Un-audited) ------------------ Rupees ------------------

Opening balance

1,105,603,719

20,812,574

1,126,416,293

Share of profit from associates

Dividends received

119,422,667

377,143

119,799,810

Closing balance

1,225,026,386

21,189,717

1,246,216,103

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

for the period ended June 30, 2025 (un-audited)

-		-
(123,920,950)		(169,089,737)

Unicol Limited

UniEnergy Limited

Total

September 30, 2024 ------------------- Rupees -------------------

Opening balance	1,783,082,782	20,614,718 1,803,697,500
Share of profit from associates	(652,479,064)	197,856 (652,281,208)
Dividends received	(24,999,999)	- (24,999,999)
Closing balance	1,105,603,719	20,812,574 1,126,416,293

CONTINGENCIES AND COMMITMENTS
1. Contingencies
  There has been no change in the status of contingencies as disclosed in note 32 to the annual financial statements of the Company for the year ended 30 September 2024.
  June 30
  2025
  (Un-audited)
  September 30
  2024
  (Audited)
2. Commitments Rupees Rupees Capital commitments - 19,087,895
  Letter of guarantee 12,600,000 -
  June 30
  2025
  (Un-audited)
  June 30
  2024
  (Un-audited)

WORKING CAPITAL CHANGES Rupees Rupees

(Increase) / decrease in current assets
Biological assets	14,292,853	8,449,789
Stores and spare parts	(39,497,402)	13,281,401
Stock-in-trade	160,005,075	(5,322,009,288)
Trade debts	323,756,795	(252,193,933)
Loans and advances	(133,947,942)	40,309,196
Trade deposits and short-term prepayments	52,567,955	27,631,090
Other receivables	-	63,496,884
	377,177,334	(5,421,034,861)
Decrease in current liabilities
Trade and other payables	515,141,433	(125,485,547)
Contract liabilities	-	(188,394,682)
Sales tax and federal excise duty payable	42,440,611	291,926,185
	557,582,044	(21,954,044)
	934,759,378	(5,442,988,905)

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

for the period ended June 30, 2025 (un-audited)

TRANSACTIONS WITH RELATED PARTIES
Related parties comprise of subsidiary, 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 unconsolidated condensed interim financial statements, are as follows:
Nine months ended
Nature of Relationship
Nature of Transaction June 30 2025
Rupees
June 30
2024
Associates Sales 1,152,498,209 1,460,027,457 Donations 13,103,000 9,082,000
Retirement benefit funds Provident fund contribution 5,207,633 4,908,756
DATE OF AUTHORISATION FOR ISSUE

These unconsolidated condensed interim financial statements were authorised for issue on 28-07-2025 by the Board of Directors of the Company.

CHIEF EXECUTIVE OFFICER CHIEF FINANCIAL OFFICER DIRECTOR

18 Mehran Quarterly Report June 2025

NOTES TO THE UNCONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

for the period ended June 30, 2025 (un-audited)

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