Mughal Steel posts Rs991mln in profit

Mughal Iron and Steel Industries posted a profit of Rs990.76 million with earnings per share (EPS) of Rs7.69 for the year ended June 30, 2017, up around 11 percent over the previous financial year. 

Mughal Steel recorded a profit of Rs893.41 million with EPS of Rs7.1 in the preceding financial year, a filing with the stock market said. The steelmaker, however, witnessed a six percent drop in sales revenue during the last financial year. Sales amounted to Rs1.94 billion in 2016/17 as compared to Rs2.06 billion in 2015/16. 

Analyst Hamdan Altaf at Taurus Securities Limited said the dent to revenue came from a drop in average sale prices and higher scarp prices. 

Though distribution and marketing costs, administrative expenses and other charges escalated during the past financial year, finance cost that dipped around 40 percent supported the bottom-line. Besides, lower taxation also offset the impact of weak sales.    

Mughal Steel is known as one of quality steel producers, including Agha Steel, Amreli Steel, International Steel and Aisha Steel. Altaf said the company’s earnings improved four percent quarter-on-quarter to Rs264 million with EPS of Rs1.05 during the last three months of FY2017. Its revenue rose 21 percent QoQ on the back of increase in average selling prices and an expected increase in steel quantity.