Karachi: Mughal Iron and Steel Industries Limited and its subsidiary Mughal Energy Limited presented their third-quarter financial results on September 30, 2024. The consolidated figures revealed a mix of growth and challenges within their operational segments.

According to information available from the Pakistan Stock Exchange (PSX), the company reported consolidated gross sales totaling Rs. 24,646.44 million for the quarter, a slight increase from Rs. 24,073.63 million in the same period last year. Despite this increase in gross sales, the consolidated results show a loss of Rs. 23.71 million, where Rs. 23.59 million is attributable to equity holders of the parent company. This marks a significant downturn from the earnings per share of Rs. 1.53 reported in the previous year, now standing at a loss per share of Rs. 0.07.

The financial strain was attributed to a decrease in gross margins due to reduced selling prices and a significant rise in finance costs. The standalone performance of Mughal Iron and Steel also reflects a growth in gross sales by the same figure, with a net profit of Rs. 6.95 million, indicating improved gross margins over the previous quarter.

The ferrous segment of the business saw an increase in sales volume by 10%, while the non-ferrous segment experienced an 18% reduction, primarily due to a shift towards in-house consumption of iron rather than external sales. The non-ferrous segment, however, did see an improvement in gross margins.

On the balance sheet, the consolidated asset base of the group expanded by Rs. 1,061.25 million from the previous quarter, reaching a net worth of Rs. 26,329.89 million, primarily held by the equity holders of the parent company.

Mughal Energy Limited, still in its pre-operational phase, reported minor losses due to operational expenses. However, the subsidiary is progressing with its 36.50 MW hybrid captive power plant project, expected to commence operations soon, which is anticipated to reduce energy costs and aid profitability in the future.

Mughal Iron and Steel remains committed to enhancing shareholder value and maintaining robust governance practices, thanking stakeholders for their ongoing support and expressing optimism for the future, especially with potential benefits from reduced base discount rates and forthcoming cheaper energy solutions from Mughal Energy Limited.