MUGHAL's profit nosedive 41% YoY to Rs515m in 3QCY23

October 27, 2023 (MLN): Mughal Iron and Steel Industries Limited (PSX: MUGHAL) has revealed its financial results for the 3QCY23, wherein the profit after tax fell by around 41% YoY to stand at Rs515.06m [EPS: 1.53], compared to the profit of Rs871.52m [EPS: 2.6] reported in 3QCY22.

The profit and loss statement shows that the company's top line grew by 49.45% YoY to Rs21.03 billion as compared to Rs14.07bn in SPLY.

Accordingly, the cost of sales also rose by 54.43% YoY but as the sales grew by a greater proportion, the gross profit improved by 20.79% YoY to Rs2.52bn in 3QCY23.

On the expense side, the company observed a rise in Sales and marketing expenses by 18.17% YoY and administrative expenses by 38.72% YoY to clock in at Rs71.96m and Rs203.48m respectively during the review period.

Conversely, the company's other charges were reduced by 33.6% YoY to 59.811m in 3QCY23.

The income statement further reveals that MUGHAL's other income decreased by 50.09% YoY to stand at Rs51.93m in 3QCY23 as compared to Rs104.04m in SPLY, having another adverse impact on profitability.

With respect to borrowing, the company's finance costs expanded by 79.60% YoY and stood at Rs1.58bn as compared to Rs881.61m in 3QCY22, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs207.11m against the Rs159.7m paid in the corresponding period of last year, depicting an increase of 29.69% YoY.

MUGHAL and KSE-100 YTD Performance

Copyright Mettis Link News