Qudsia Bano

Mehran Sugar Mills Limited’s sales revenue decreased 14% to Rs4.8 billion in the first nine months of the calendar year 2022 (9MCY22) compared with Rs5.5 billion in the corresponding period of last year. However, the gross profit of the company increased 35% to Rs866 million in 9MCY22 from Rs642.5 million over the corresponding period of the previous year.

The company posted a net income of Rs259.4 million during the 9MCY22 compared to a profit of Rs263.1 million in the corresponding period last year, showing a negative growth of 1% year-on-year, reports WealthPK. This was mainly due to the significant devaluation of the Pakistani rupee during the third quarter of CY22.

Performance in 2021

During CY21, the company generated sales revenue of Rs6.9 billion against Rs7.4 billion in CY20, posting a decrease of 6% year-on-year.   However, the gross profit for CY21 stood at Rs636 million, 37% up from a profit of Rs465 million in CY20. The loss-after-taxation for the year was Rs23.8 million, down 151% from a profit of Rs47 million in CY20.

The earnings per share (EPS) of the company were the highest in 2016 at Rs16.91, but then the EPS took a plunge to Rs4.11 in 2017. The EPS rebounded and jumped to Rs12.89 in 2018. It pushed down to Rs9.97 in 2019. However, the EPS suffered a drubbing and touched the lows of Rs1.01 in 2020, but still in the positive territory. The EPS went into the negative territory the next year at Rs-0.49 in 2021.

About the company

Mehran Sugar Mills was incorporated in Pakistan as a public limited company in December 1965 under the now repealed Companies Act, 1912. 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 the 14th floor, Dolmen City Executive Tower, Marine Drive, Block 4, Clifton, Karachi. The mills of the company are located in Tando Allahyar district of Sindh.

Credit : Independent News Pakistan-WealthPk