Agha Steel posts Rs1.8bn loss as revenue drops 46%

October 29, 2024 (MLN): Agha Steel Ind.Ltd (PSX: AGHA) suffered a massive loss of Rs1.81bn  [LPS: Rs3] in contrast to the profit of Rs125.24m [EPS: Rs 0.21] achieved in the same period last year (SPLY).

According to the results, the company's revenue dropped 45.84% to Rs2.85bn in Q3 CY24.

The cost of sales fell by 24.1%, but with sales declining by a significantly higher margin, the company incurred a gross loss of Rs223.65m in Q3 CY24.

During the period under review, other income contracted by 60.3% to stand at Rs42.36m in Q3 CY24 as compared to Rs106.73m in SPLY.

On the expense side, the company took a hit as its administration expenses rose 186.6% YoY to Rs188.2m, and other operating expenses increased 2778.6% YoY to Rs289.67m.

Conversely, distribution and selling expenses fell 33.9% YoY to Rs84.14m

The company’s finance cost soared by 19.7% and stood at Rs1.14bn as compared to Rs952.16m in SPLY, mainly due to higher interest rates.

On the tax front, the company received a tax credit of Rs68.12m against the Rs35.55m paid in the corresponding period of last year.

Amount in thousand except for EPS

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