Agha Steel reports substantial reduction in quarterly loss

October 23, 2025 (MLN): Agha Steel Industries Limited has reported a significant improvement in its financial performance for the quarter ended September 30, 2025, successfully narrowing its Loss after Taxation by 35.61%.

The net loss for the quarter stood at Rs1.16 billion compared to a loss of Rs1.81bn in the corresponding period last year.

This bottom-line improvement directly translated to better Loss per Share (EPS), which reduced by 35.67% to Rs1.93 from Rs3 in the previous year's quarter.

The company's top line experienced a contraction, with Turnover (net) falling by 24.01% to Rs2.16bn from Rs2.84bn.

However, this decline in revenue was accompanied by a larger-magnitude decrease in the Cost of sales, which improved by 18.75%.

Despite the improvement in cost control, the company's Gross loss widened by 48.11%, moving from Rs223.65m to Rs331.26m.

Consequently, the Gross Loss Margin deteriorated sharply, from −7.86% to −15.32%.

The major driver of the reduced net loss was significant cost control across several operational areas.

Administrative expenses saw the most drastic reduction, falling by 51.65% from Rs188.2m to Rs90.99m.

Other expenses were also slashed by nearly 90%, reflecting effective management of non-core expenditures from Rs289.67m to Rs29.09m.

Crucially, Finance costs were reduced by 35.87% from Rs1.14bn to Rs730.82m, a factor that likely cushioned the impact of the lower sales revenue and wider gross loss.

Selling and distribution costs increased marginally by 4.97%.

The combined effect of these factors led to a 24.10% reduction in the Operating loss, which decreased to Rs1.24bn.

Other income declined by 57.58% to Rs17.97m during the period.

The net Taxation figure for the quarter showed a 7.66% increase in the net tax benefit recognized, rising from Rs103.69m to Rs111.63m.

The Net Loss Margin showed a distinct improvement, moving from −63.79% in 2024 to −54.05% in 2025, indicating that a smaller portion of the lower revenue was consumed by the net loss this quarter.

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