Karachi: Aisha Steel Mills Limited, part of the Arif Habib Group, has reported significant losses in its financial results for the quarter ended September 30, 2024. The Karachi-based steel manufacturer detailed a substantial downturn, recording a net loss of PKR 843.12 million, compared to a profit of PKR 35.24 million in the corresponding quarter of the previous year.

The company, which is publicly listed on the Pakistan Stock Exchange, experienced a drastic drop in revenue from contracts with customers, falling from PKR 10.60 billion in 2023 to PKR 4.58 billion in 2024. According to information available from the Pakistan Stock Exchange (PSX), the significant reduction in revenue highlights challenges in the steel market and operational hurdles the company may be facing.

Cost of sales also saw a reduction, albeit not proportional to the revenue drop, leading to a gross profit of PKR 71.17 million this quarter compared to PKR 1.03 billion the previous year. Administrative expenses and selling and distribution costs were both down year-over-year, yet these reductions were not sufficient to avert a loss.

Finance costs remained a burden, although reduced from the previous year, and a slight financial relief came in the form of a PKR 382.82 million income tax credit. However, this was not enough to offset the broader negative financial impacts experienced during the period.

No dividends or rights shares were issued this quarter, reflecting the company's focus on navigating through its financial challenges. The lack of any price-sensitive corporate actions or entitlements was also noted in the disclosures to the stock exchange.

This performance indicates a troubling period for Aisha Steel Mills, as it grapples with market volatility and internal financial pressures. The management's strategy in the upcoming quarters will be pivotal in determining the company’s ability to recover and stabilize its financial standing.