AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: The third-quarter earnings forecasts for Mughal Iron and Steel Ltd. (MUGHAL) and Amreli Steels Ltd. (ASTL) indicate a challenging period for Pakistan’s long steel sector, as both companies grapple with subdued profitability due to persistent demand-side pressures and other industry challenges.
Mughal Iron and Steel is expected to report an earnings per share (EPS) of Rs0.94 for the third quarter of the fiscal year 2025, marking a significant year-on-year increase of 3.1 times. This anticipated rise is attributed mainly to declining grid tariffs and reduced finance expenses, which have been aided by ongoing monetary easing.
Conversely, Amreli Steels is projected to report a loss of Rs2.22 per share for the same period. The company’s lower utilization levels, coupled with working capital constraints, are expected to weigh heavily on its financial performance.
Throughout the first nine months of fiscal year 2025, Pakistan’s long steel sector has been under continuous demand-side pressure. However, analysts remain cautiously optimistic, suggesting that improving macroeconomic conditions could foster a recovery in the construction sector by fiscal year 2026.
Monetary easing and reductions in grid tariffs are anticipated to provide some relief to the industry, potentially serving as catalysts for future growth and stability.