Karachi: Aisha Steel Mills Limited, a leading player in the steel manufacturing sector, has reported a noticeable downturn in its financial performance for the half year ending December 31, 2024. The company's Board of Directors announced the results during a meeting held on February 24, 2025, at the Arif Habib Centre in Karachi. The report disclosed no dividends, bonus shares, right shares, or other corporate actions.

The financial results highlight a revenue of 12.93 billion for the half year, a decrease from 22.65 billion in the same period of the previous year. The cost of sales stood at 13.03 billion, resulting in a gross loss of 100.70 million, contrasting with the previous year's gross profit of 2.17 billion.

Operating results revealed a loss of 482.19 million, compared to a profit of 1.73 billion in the prior year. This decline is attributed to increased selling, distribution, and administrative expenses. Finance costs rose to 1.78 billion, contributing to a pre-tax loss of 2.26 billion. An income tax credit of 564.75 million reduced the overall net loss to 1.70 billion, compared to a profit of 132.17 million in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's total assets decreased to 37.36 billion from 40.60 billion as of June 30, 2024. Current assets saw a reduction, with inventories decreasing from 9.87 billion to 7.35 billion and trade receivables falling from 2.93 billion to 1.61 billion.

In terms of equity, the company reported no change in its share capital, maintaining it at 9.30 billion. However, a significant contribution from the sponsor, amounting to 8.28 billion, was noted under revenue reserves. Total liabilities were reduced to 15.07 billion from 24.89 billion, largely due to decreases in trade payables and borrowings.

The cash flow statement showed a net cash outflow from operating activities of 1.25 billion, primarily due to finance costs and taxation payments. Investing activities resulted in a cash outflow of 165.06 million, while financing activities contributed a net inflow of 3.01 billion, supported by sponsor contributions and borrowings.

The financial outlook for Aisha Steel Mills reflects a challenging market environment, with the company emphasizing its commitment to addressing these financial hurdles in the coming quarters.