Hifsa Raja

The sales of Faran Sugar Mills Limited climbed 41% to Rs4.95 billion in the first nine months (9MFY22) of the Fiscal Year 2021-22 from Rs3.52 billion over the corresponding period of the Fiscal Year 2020-2021. The gross profit, showing a 1673% growth, stood at Rs563 million in 9MFY22 compared to Rs31.77 million over the same period of FY21.

The loss before tax reached Rs415 million in 9MFY22 against Rs227 million in 9MFY21, while the profit after tax reached Rs165 million in 9MFY22 against Rs57 million in 9MFY21, registering a growth of 187%, reports WealthPK.

As of June 30, 2021, individuals owned 78.78% of the total shares of the company, investment companies 0.02%, insurance companies 0.68%, joint stock companies 5.67%, financial institutions 0.11%, charitable trusts 2.09%, mutual funds 9.47% and others 1.77%.

Financial Performance

During the fiscal year 2020-21, the company had a turnover of Rs4.8 billion against over Rs5.75 billion in 2019-20, registering a decrease of 15%.  The gross profit for FY21 was Rs40 million, registering a loss of 85% from Rs268 million in FY20. The loss before taxation for FY21 was Rs390 million against Rs151 million in FY20. The loss after tax for FY21 was Rs370 million compared to Rs171 million in FY20.

Earnings Per Share

The earnings per share remained Rs17.69 in 2018, dropped in 2019 to Rs15.21 and to minus Rs6.85 in 2020, and remained at minus Rs14.82 in 2021.

Profit or Loss over the Years

Profitability – gross profit and profit before and after tax – remained high in 2018 and 2019. However, in 2020 and 2021, the company was more on the loss side. Faran Sugar Mills Limited was incorporated on November 3, 1981 as a public limited company under the Companies Act, 1913 (repealed with the enactment of the Companies Ordinance, 1984 and, subsequently, by the Companies Act, 2017). The principal business of the company is production and sale of white crystalline sugar.

Credit : Independent News Pakistan-WealthPk