Mughal Iron and Steel Reports Lower Profits Amidst Volatile Market Conditions

Karachi: Mughal Iron and Steel Industries Ltd reported a decline in its financial performance for FY25, with a 3% decrease in topline revenue, amounting to PkR89.5 billion. The company’s bottom line also saw a significant drop of 52% year-on-year, reaching PkR966 million, as disclosed in an analyst briefing.

Despite the overall downturn, the company experienced growth in its ferrous segment. Girder and section volumes more than doubled, reaching 180,000 tons compared to 80,000 tons in the same period last year. Rebar volumes increased to 190,000 tons from 160,000 tons. This contributed to an improvement in gross margins, which rose to 9.1% from 8.35%.

Copper volumes, however, were affected by price fluctuations, with prices surging as high as US$12,000 per ton. The company’s value addition in copper stood at US$400-500 per ton. In response, management plans to explore value addition in other commodities in the future.

The company is currently upgrading its Bar Mill to convert it into a multipurpose mill, expected to be completed by the third quarter of FY26. Management anticipates the company’s debt-to-equity ratio to remain stable moving forward.