Agha Steel reports Rs4bn loss for H1FY25, nearly 18x higher YoY

March 03, 2025 (MLN): Agha Steel Industries Limited (PSX: AGHA) has reported a net loss of Rs4 billion for the half-year ended December 31, 2024, marking a significant increase of 1,654% from the Rs219 million loss recorded in the same period last year.

The loss per share stands at Rs6.3, compared to Rs0.36 in the corresponding period last year.

The company's revenue plummeted by 42.6% to Rs5.3bn, compared to Rs9.3bn in the corresponding period of 2023, primarily due to reduced demand and pricing pressures in the steel industry.

The gross loss for the period stood at Rs789m, in contrast to a gross profit of Rs2bn in the previous year, as the cost of sales declined by only a18.3% to Rs6bn.

Additionally, administrative expenses surged by 87% to Rs319.3m, while selling and distribution costs saw a slight decline of 4% to Rs183.6m.

Agha Steel’s finance costs increased by 24.4% to Rs2.5bn, further intensifying its operating loss, which ballooned to Rs3.8bn from Rs550m last year.

Other expenses skyrocketed to Rs1bn from Rs151m, contributing to a pre-tax loss of Rs4.6b—a sharp increase from Rs657.5m in the prior year.

Additionally, net taxation rose by 78% to Rs781m.

The company is actively pursuing strategic initiatives to enhance operational efficiency and long-term sustainability.

These initiatives include a comprehensive review of AGHA's product portfolio, exploration of potential partnerships and collaborations, and the adoption of innovative technologies to drive productivity.

Furthermore, AGHA continuously evaluates market trends and customer preferences to align its offerings with evolving industry demands.