Lahore September 22 2024: The Board of Directors of Mughal Steel Limited, in alignment with the Company’s overall corporate strategy, has approved the balancing, modernization and replacement (BMR) of the existing steel bar re-rolling mill.
Share price of the company drops PKR 5.06 or 5.76 percent on Friday at Pakistan Stock Exchange.
This BMR initiative aims to convert the re-rolling facility into a dual-purpose rolling mill, allowing the Company to utilize its current installed capacity to manufacture both steel rebars and medium sections interchangeably.
This strategic move will significantly enhance the capacity utilization of the existing re-rolling mill, diversify the product and market portfolio, and strengthen the Company’s competitive position. Once operational, the upgradation will enable production of approximately 8,000 to 10,000 tons of medium sections per month. The total estimated capital expenditure (CAPEX) for this project is PKR 2,000 million.
Company reported profit of PKR 1,999 million for fiscal year 2024, which is 43 percent lower compared to reported profit of PKR 3,480 million for the fiscal year 2023.
Muhgal Steel gross sales crossed PKR 100 billion level for the first in company’s history during the current fiscal year with overall sales of PKR 105,554 million, up from PKR 74,469 million during the previous year.
Company finance cost increased to PKR 6,364 million for fiscal year 2024 compared to PKR 4,423 million last year.
