Mughal Steel sees over 70% drop in nine-month profit

MG News | April 29, 2025 at 02:25 PM GMT+05:00

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April 29, 2025 (MLN): Mughal Iron and Steel Industries Limited (PSX: MUGHAL) reported a consolidated profit of Rs412.4 million [EPS: Rs1.23] for the nine-month period ended March 31, 2025, reflecting a sharp year-on-year (YoY) decline of 70.36% compared to Rs1.39 billion [EPS: Rs4.15] in the same period last year (SPLY).

Despite a slight 1.02% YoY decrease in gross sales to Rs75.7bn from Rs76.49bn, the company’s gross profit dropped by 8.79% YoY to Rs5.87bn, driven by a smaller 0.66% decline in the cost of sales, which stood at Rs60.3bn.

Sales and marketing expenses rose notably by 42.42% YoY to Rs180.26m, while administrative and other expenses increased by 7.83% YoY to Rs671.43m.

Other charges fell significantly by 76.33% YoY to Rs42.52m. Meanwhile, the reversal in expected credit losses (ECL) declined 37.49% YoY to Rs28.13m.

Other income declined sharply by 50.05% YoY to Rs86.73m. Finance costs remained elevated at Rs4.59bn, showing only a slight 2.16% reduction from the previous year.

While profit before tax jumped 78.87% YoY to Rs1.03bn mainly due to a reversal in levy-related charges higher taxation of Rs614.55m significantly impacted the bottom line, resulting in a final net profit of Rs412.4m, with EPS falling steeply to Rs1.23 from Rs4.15 in SPLY.

Consolidated Profit and Loss For The Nine Months Ended March 31, 2025 (Rupees '000)
Category	Mar-25	Mar-24	%Change
Gross Sales	75,704,940	76,487,203	-1.02%
Sales Tax	(9,487,794)	(9,327,418)	1.72%
Net Sales Before Commission	66,217,146	67,159,784	-1.40%
Commission	(49,010)	(26,138)	87.50%
Net Sales	66,168,136	67,133,646	-1.44%
Cost of Sales	(60,299,561)	(60,699,280)	-0.66%
Gross Profit	5,868,575	6,434,366	-8.79%
Sales & Marketing Expenses	(180,261)	(126,574)	42.42%
Expenses	(671,435)	(622,696)	7.83%
Other Charges	(42,521)	(179,607)	-76.33%
Allowance for Expected Credit Losses - ECL Reversal / (Charge)	28,134	45,006	-37.49%
Other Income	86,732	173,635	-50.05%
Finance Cost	(4,590,967)	(4,692,180)	-2.16%
Profit / (Loss) Before Levies and Taxation	498,255	1,031,409	-51.69%
Levies	528,690	(457,273)
Profit / (Loss) Before Taxation	1,026,946	574,136	78.87%
Taxation	(614,550)	817,350
Profit for the Period	412,397	1,391,486	-70.36%
Share of Profit / (Loss) Attributable To:
- Equity Holders of the Holding Company	413,557	1,391,486	-70.28%
Basic and Diluted Earnings Per Share (Rupees)	1.23	4.15	-70.36%

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