Mughal Iron & Steel Industries Ltd (MUGHAL) announced its financial results for the first quarter of FY27 today, reporting a net profit after tax (NPAT) of PKR 224.0 million (earnings per share: PKR 0.6). This represents a significant year-on-year decline of 78% from PKR 997 million (EPS: PKR 2.7) in the same period last year.
The results fell short of our expectations, mainly due to lower gross margins. – Net sales decreased by 15% year-on-year, totaling PKR 17.1 billion, down from PKR 20.1 billion in 1QFY26. This decline was largely driven by sluggish export demand in the non-ferrous segment, although the company reported higher sales volumes for ferrous products during the period. – Gross profit fell by 58% year-on-year, amounting to PKR 1.4 billion, down from PKR 3.4 billion in the same period last year.
Gross margins contracted significantly to 8.4%, compared to 17.2% in 1QFY26, largely due to the suspension of non-ferrous exports during the quarter. – The reduced margins were also influenced by the start of operations at Mughal Energy Ltd’s 31.5 MW hybrid power plant on August 31, with a plant utilization factor of 68% during its first month of operation.
Full Report
https://research.akdsl.com/639289842581039650.pdf
Courtesy: AKD Research
