Lahore: Mughal Iron and Steel Industries Limited reported a significant drop in profit margins and earnings for the fiscal year 2024, as revealed in its Corporate Briefing presentation. The company's gross profit margin fell to 8.35% from 14.35% in the previous fiscal year, while the net margin decreased to 2.16% from 5.16% in FY 2023. This marks a continued downward trend from previous years, where net margins were as high as 8.18% in FY 2022.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw a reduction to 8.18%, down from 13.69% in the prior year. Return on equity (ROE) decreased to 7.65%, compared to 13.72% in FY 2023. The company did not declare a cash dividend for FY 2024, following a dividend of 3.2 per share declared in the previous fiscal year.

According to information available from the Pakistan Stock Exchange (PSX), the company's share price witnessed a significant increase, reaching 93.00 per share, compared to 48.44 in FY 2023. This rise occurred despite the company's challenges in maintaining profit margins.

Financial results for the year showed net sales of 92,382.60 million, with a gross profit of 7,717.63 million. The finance cost for FY 2024 was 6,364.04 million, and levies and taxation amounted to 1,381.05 million. Profit for the year was recorded at 1,999.89 million, a decrease from 3,480.48 million in FY 2023. Earnings per share (EPS) also fell to 5.96 from 10.37 in the previous fiscal year.