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

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.

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