Karachi: Metropolitan Steel Corporation Limited has reported its annual financial results for the fiscal year ended June 30, 2025, showing a decrease in net losses despite a challenging economic environment. The company, which specializes in the manufacturing and sale of steel wire products, faced significant industry-wide pressures including rising energy costs and smuggling activities.
According to the Directors’ Report, the company’s net loss after taxation stood at Rs. 12.423 million for the year, a reduction from the Rs. 23.341 million loss reported in the previous fiscal year. This improvement reflects ongoing efforts in cost control and operational efficiency, despite a decrease in net revenue from Rs. 122.475 million to Rs. 100.748 million.
The fiscal year was marked by slow economic activity, with the country’s GDP growing at approximately 2.68%. Metropolitan Steel faced a decrease in capacity utilization by 2.52%, attributed to subdued market demand for steel products. The company also reported a fall in international prices, particularly from China, leading to a 15%-20% decrease in the average price of its products.
Adding to the financial challenges, the company was unable to avoid a gross loss of Rs. 11.683 million, compared to a higher gross loss of Rs. 17.213 million in the prior year. Despite these setbacks, other income rose significantly to Rs. 18.018 million from Rs. 4.607 million, providing some relief to the financial statement.
In its corporate social responsibility efforts, Metropolitan Steel Corporation allocated Rs. 761,000 towards community initiatives, focusing on food security and support for charity organizations such as Baitussalam Welfare Trust and Shaukat Khanum Memorial Cancer Hospital and Research Centres.
The company anticipates a more stable market environment in the upcoming fiscal year, with expectations of increased demand and pricing stability. According to information available from the Pakistan Stock Exchange (PSX), the steel wire industry continues to grapple with external pressures, yet Metropolitan Steel is committed to navigating these challenges.
Looking ahead, the Board of Directors remains focused on leveraging expected market recovery and stabilizing local market conditions. The financial position as of June 30, 2025, showed total assets of Rs. 912.957 million, with a notable increase in property, plant, and equipment from Rs. 766.169 million to Rs. 806.668 million.
As the company looks forward, it remains committed to its strategic goals while addressing ongoing economic challenges, reflecting a cautious optimism for the future.