Karachi: Agha Steel Industries Limited reported a significant financial downturn in the fiscal year ended June 30, 2024, as outlined in their latest financial results. According to information available from the Pakistan Stock Exchange (PSX), the company encountered steep declines in profitability and revenue, underlining the tough market conditions affecting the steel sector.

The company's turnover for FY24 was Rs. 13.69 billion, a sharp decrease from Rs. 20.58 billion in the previous year. This downturn was paired with a gross loss of Rs. 628.31 million, compared to a gross profit of Rs. 4.82 billion in FY23. Administrative and distribution expenses remained substantial, further impacting the bottom line.

The net loss before tax widened dramatically to Rs. 7.79 billion from a profit of Rs. 1.17 billion in the preceding year. This financial strain led to a net loss after tax of Rs. 5.09 billion, reversing the modest profit of Rs. 0.42 million reported last year. The loss per share escalated to Rs. 8.41 from earnings of Rs. 1.50 per share in FY23.

Contributing to its comprehensive income, Agha Steel reported a surplus on revaluation of fixed assets of Rs. 22.33 billion. However, deferred tax adjustments of Rs. 5.68 billion resulted in a total comprehensive income of Rs. 11.57 billion for the year, which did not offset the operational losses.

The Annual General Meeting of Agha Steel is scheduled to take place on October 28, 2024, at Plot No NWIZ/1/P-133, Port Qasim, Karachi, with an option for shareholders to join via video conference. The share transfer books will remain closed from October 11, 2024, to October 18, 2024, for dividend entitlements and other corporate actions, which have all been reported as nil for the year.

This financial announcement follows a year marked by high operational costs and reduced market demand, which have collectively challenged the company's growth trajectory and profitability.