Lahore: Mughal Iron and Steel Industries Limited announced its financial results for the quarter ending September 30, 2024, reporting a substantial downturn in net profit alongside approval for capital expenditures aimed at operational expansion. According to information available from the Pakistan Stock Exchange (PSX), the company’s board, in a meeting held on October 30, 2024, at Lahore headquarters, reviewed and approved the condensed financial statements for the quarter, which highlighted several challenges and key financial figures.
The company reported gross sales of 24.65 billion rupees for the third quarter of 2024, slightly up from 24.07 billion rupees in the corresponding quarter of the previous year. After accounting for a sales tax of 3.05 billion rupees, net sales before commission stood at 21.60 billion rupees, an increase from 21.04 billion rupees in the same period last year. However, net sales after commission showed marginal growth, totaling 21.58 billion rupees compared to 21.03 billion rupees in 2023.
The cost of sales for the quarter reached 19.60 billion rupees, up from 18.51 billion rupees, resulting in a gross profit of 1.99 billion rupees. This figure marked a decline from the previous year’s gross profit of 2.52 billion rupees. Operating expenses, including sales and marketing expenses of 35.79 million rupees and administrative costs of 215.06 million rupees, impacted the company’s profitability.
Mughal Iron and Steel also reported other charges amounting to 0.69 million rupees, alongside a finance cost of 1.90 billion rupees, which significantly affected the company’s bottom line. This financial burden resulted in a pre-tax loss of 220.94 million rupees, a stark contrast to the 538.85 million rupees profit reported for the same quarter in 2023. Following taxation adjustments, the net profit for the period amounted to a modest 6.95 million rupees, compared to 515.06 million rupees in the previous year.
In addition to financial performance, the board approved a capital expenditure budget of up to 1.00 billion rupees for the development of sheds, warehouses, and civil works at railway stations. This investment, aimed at enhancing operational capacity, aligns with the company’s ongoing modernization of its bar re-rolling mill.
The company’s basic and diluted earnings per share stood at 0.02 rupees for the quarter, a significant decline from the previous year’s earnings per share of 1.53 rupees. The board did not recommend any cash dividend, bonus shares, or rights shares for the period.
The company has committed to transmitting its condensed interim financial statements and related disclosures through the PSX portal within the required timeframe.