Jahangir Tareen sugar mills profit up by 250%

Jahangir Tareen sugar mills turn into profit from loss during PTI government

News Report

Jahangir Tareen sugar mills profit-JDW turns from loss into profit which makes around a 250 % increase in profit for the financial year ended on September 30, 2021.

In 2018 Sugar mill was at loss but after PTI came into power JDW revenue increased from Rs37.2 billion to R64 billion and profits are also at record levels.

In a notice to the stock market, the management of JDW Sugar Mills limited said the Board of Directors of JDW Sugar Mills Limited was pleased to present the condensed interim financial statements of the Company for the nine months ended on 30 June 2021.

During the period under review, the Jahangir Tareen sugar mills profit has earned net profit after tax amounting to Rs.4,878 million as compared to net profit after tax Rs.1,398 million resultantly earnings per share of the Company in the current period is Rs.81.61 as compared to Rs.23.40 in the same period last year, which is mainly attributable to a reduction in financial charges and sale of carryover sugar stocks.

Besides a 7% increase in the gross turnover of the Company, there has also been an improvement in the gross profit margin compared to the same period last year which has resulted in getting better financial results.

The finance cost of the Company for the current period has significantly decreased by 37% over the comparative period as being the result of lower mark-up rates and repayment of debt.

During the period under review, key financial covenants have shown improvement compared to the last period which is likely to improve further subsequently.

Sugar scandal: FIA sends questionnaires to 38 mills

The finance cost of the Company for the current period has significantly dropped by 37% over the comparative period.

This was a result of lower mark-up rates and repayment of debt. During the period under review, key financial covenants have shown improvement against the same period.

The Company is fulfilling its all financial obligations on time.

Cartelization: CCP imposes Rs 44b penalty on sugar mills

It claims to enjoy a cordial relationship with all the financial institutions it’s dealing with.

Out of outstanding as of 30 November 2020, it had claimed to receive Rs. 2,042 million in two tranches i.e., 40% of the amount under the Master Agreement.

The company had already received it on 04 June 2021 and will receive a balance of 60% in December this year.

Each installment consists of 1/3rd cash payment. 1/3rd was through the issuance of Sukuk Bonds of 5 to 10 years tenor.

As many as 1/3rd was by the issuance of Pakistan Investment Bonds (PIBs) of 10 years’ period.

Inquiry launched against the sugar industry

It agreed voluntarily to certain concessions which also include foregoing 70% of fixed energy payment for energy. It dispatched energy above the annual 45% plant factor effective from Commercial Operation Dates.