Lahore: Ittefaq Iron Industries Ltd, a prominent player in the iron and steel sector, reported its financial results for the fiscal year ending June 30, 2026, revealing substantial losses amidst a challenging economic environment. The company reported its earnings following a Board of Directors meeting held on Tuesday, September 29, 2026.
In a detailed statement released by the company, it was disclosed that there would be no cash dividend, bonus issue, or right shares for the fiscal year. According to the financial summary, the company witnessed a decline in revenue from contracts with customers, which fell to 2.40 billion rupees from 2.65 billion rupees in the previous year. This decrease in revenue contributed to a gross loss of 96.86 million rupees, although it marked an improvement from the previous year's gross loss of 459.26 million rupees.
Despite the challenging revenue figures, the company managed to reduce its finance costs to 53.70 million rupees from 88.56 million rupees last year. Administrative and general expenses slightly increased to 113.37 million rupees compared to 108.48 million rupees in the previous year. The overall loss before taxation for the year stood at 321.27 million rupees, a moderate move compared to the prior year's loss of 699.80 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), Ittefaq Iron Industries reported a net loss after taxation amounting to 321.98 million rupees, which signifies a moderate move from the previous year's loss of 657.98 million rupees. The loss per share improved to 2.23 rupees from 4.56 rupees in the previous fiscal year, offering a semblance of relief amid the broader financial strain.
The total comprehensive loss of the company for the year amounted to 323.74 million rupees, a figure that is reflective of a big move compared to the prior year's comprehensive loss of 654.19 million rupees. The company's operating activities generated a net cash inflow of 65.35 million rupees, slightly down from the previous year's figure of 81.44 million rupees. Notably, the net cash used in financing activities saw an increase to 94.98 million rupees from 49.50 million rupees, further straining liquidity.
The final cash position at the end of the fiscal year showed a balance of 30.46 million rupees, down from 59.13 million rupees at the beginning of the year, highlighting a decrease in cash and cash equivalents by a significant margin. This financial performance underscores the challenging conditions faced by the company within the iron and steel market, as it continues to navigate economic headwinds and operational challenges.