Karachi: Mughal Iron & Steel Industries Limited has reported a decline in earnings for the nine-month period ending March 31, 2025. The company's consolidated gross sales amounted to Rs. 75,704.94 million, a slight decrease compared to Rs. 76,487.20 million in the corresponding period of the previous year. The consolidated profit for the period stood at Rs. 412.397 million, translating to earnings per share (EPS) of Rs. 1.23 per share, down from Rs. 4.15 per share in the prior year.

According to information available from the Pakistan Stock Exchange (PSX), the decrease in net profit is attributed to a slight reduction in overall gross margins and high finance costs. The company's net worth as of March 31, 2025, was reported at Rs. 27,630.42 million, with Rs. 321.934 million attributable to equity holders of the holding company.

The ferrous segment experienced an increase in volumes, while the non-ferrous segment saw a decline in both exports and local sales. This shift was primarily due to the company's strategic focus on enhancing ferrous volumes and reducing non-ferrous operations due to operational and regulatory challenges. Gross margins in the ferrous segment showed slight improvement, whereas margins in the non-ferrous segment remained unchanged. Overall margins decreased due to the altered mix of ferrous and non-ferrous operations.

On a standalone basis, Mughal Iron & Steel Industries posted gross sales of Rs. 75,704.94 million for the period, with a profit of Rs. 453.002 million. Ferrous segment sales increased by 7%, while non-ferrous segment sales decreased by 23% compared to the previous period. The increase in ferrous sales was linked to higher volumes, while the decline in non-ferrous sales was attributed to reduced operations.

The company's inventories decreased by 20%, primarily due to reduced raw material inventories in the non-ferrous segment. Trade debts rose by 35%, mainly due to increased local non-ferrous operations and quarter-end sales. Additionally, the company repaid a principal and profit payment of Rs. 2,500.00 million related to Sukuk-II, and partially issued Sukuk-V of the same amount during the period.

The subsidiary, Mughal Energy Limited, is progressing with its 36.50 MW hybrid captive power plant project, with civil works completed and commercial operations expected in the last quarter of FY 2025.

Looking ahead, the company anticipates benefits from a decrease in the base discount rate and cheaper electricity from Mughal Energy Limited. The focus will remain on increasing exposure in the ferrous segment. The board is committed to providing sustained returns to shareholders and maintaining its reputation for good governance.