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Lahore: The financial performance of Mughal Iron and Steel Ltd. and Amreli Steels Ltd. is expected to remain under pressure in the fourth quarter of fiscal year 2025, primarily due to a slowdown in demand, according to estimates from JS Global.
Mughal Iron and Steel Ltd. is projected to report earnings of Rs321 million, translating to an earnings per share (EPS) of Rs0.96 for the quarter, marking a 47% decline compared to the same period last year. The decrease is also attributed to a reduced contribution from the company’s margin accretive non-ferrous segment. For the entire fiscal year 2025, the cumulative EPS is estimated at Rs2.31, representing a 61% year-on-year decline. Analysts do not anticipate the company declaring any cash dividend for the period.
Amreli Steels Ltd. is expected to continue facing challenges, with its earnings likely to remain in the negative territory. The company is anticipated to post a loss per share (LPS) of Rs2.65 in the fourth quarter. This reflects ongoing difficulties in capacity utilization amid persistent working capital constraints. The cumulative loss for the fiscal year is expected to reach Rs3.6 billion, with an LPS of Rs12.28.
The projections underscore the ongoing challenges in the steel sector, as companies grapple with reduced demand and operational hurdles impacting their financial outcomes.