Lahore October 27 2023: Mughal Steel Limited posted highest ever topline along with profitable bottomline despite of the prevailing adversities in 1Q'24.
Increase in topline was associated with increase in selling prices both in ferrous and nonferrous segments and increase in volumes in ferrous segments.
Non-ferrous volumes witnessed decline due to decrease in sale of waste, which was mainly due to in-house utilization of iron scrap by ferrous segment, however, copper volumes witnessed increase.
Overall gross margins witnessed decline which was due to temporary decline in ferrous margins in the quarter.
Administrative expenses mainly increased due to increase in salaries expenses. Rs. 71.204 million was reversed on account of allowance for expected credit losses in respect of trade debts due to recovery of overdue balances.
Other income decreased by 50.09% mainly due to decrease in exchange gain. Finance cost increased significantly by 79.60% mainly due to significant hike in base discount rate. Resultantly, Mughal Steel posted profit after of Rs. 515 million (EPS of Rs. 1.53 per share) as compared to Rs. 871 million (EPS of Rs. 2.60 per share) in corresponding quarter.
Additions in property, plant and equipment mainly represented installation of induction furnace and CCM. Inventories increased by 16.80% mainly due to increase in average cost and also due to increase in inventories in transit. Loans and advances decreased due to decrease in advances to suppliers. Deposits, prepayments and other receivables decreased due to release of guarantee margins.
Resultantly, the statement of financial position footing stood at Rs. 63,130.460 million as of September 30, 2023, compared to Rs. 59,831.987 million as of June 30, 2023. Breakup value per share increased to 77.13 as of September 30, 2023 from Rs 75.60 as at June 30, 2023. Current ratio as at September 30, 2023 stood at 1.46:1 as compared to 1.50:1 as at June 30, 2023.
Related Posts
