In SY24, TCORP reported a net profit of PKR 21.12 million (EPS: PKR 0.36), marking a 94% decline from PKR 341.05 million (EPS: PKR 6.44) in the previous year.
The decline in profitability was primarily driven by higher operational costs, resulting in a gross loss. Cane procurement costs increased from PKR 400 per maund (subsidized) in the previous year to PKR 470 per maund by year-end.
Additionally, the overall sugar recovery rate declined due to lower yields and the absence of rainfall. In SY24, TCORP reported total cane crushing of 570,050 MT, compared to 616,378 MT in the SPLY. The sugar recovery rate improved to 10.21% in SY24 from 9.76% in SY23, while the molasses recovery rate increased to 5.01% from 4.82% in the previous year. The company’s operational days also increased to 102 in SY24, up from 97 days in the SPLY. TCORP is undergoing an expansion, increasing its crushing capacity from 8,500 TCD to 15,000 TCD.
The total estimated cost of the expansion is PKR 1.5-2 billion, with machinery expenditures ranging between PKR 400-500 million. Civil work has been completed, with 50-60% of the overall expansion finalized.
The remaining 40% is expected to be completed over the next 1-2 years. Looking ahead, cane crushing is expected to remain at 8,500 TCD in 2025, with the current crushing season projected to conclude within the next two to three weeks.
Important Disclosures
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