Mughal Steel swings to Rs926m profit in Q1 FY26
29-Oct-2025
MettisGlobal
October 29, 2025 (MLN): Mughal Iron & Steel Industries Limited (PSX: MUHGAL) has revealed its financial results for the quarter ended September 30, 2025, demonstrating a remarkable turnaround from the previous year's loss to a substantial profit.
The company posted a Profit after Taxation of Rs926m, a
dramatic reversal from a loss of Rs24m recorded in the same period last year.
This exceptional performance was reflected in Earnings per
Share (EPS), which surged to Rs2.51 compared to a loss of Rs0.07 per share in
Q3 2024.
Despite an 8% decline in Gross Sales to Rs22.62bn from
Rs24.65bn last year, the company achieved significantly improved profitability
through better cost management and operational efficiency.
Net Sales decreased 7% to Rs20.09bn, accompanied by a
favorable 18% reduction in Sales Tax. The company's strategic cost optimization
initiatives resulted in a substantial 15% decline in Cost of Sales to
Rs16.64bn, which proved instrumental in driving profitability.
Gross Profit surged an impressive 74% to Rs3.45bn,
marking a significant improvement in the company's margin profile and
operational performance.
However, certain challenges emerged during the quarter:
Sales and Marketing Expenses increased dramatically by 179% to Rs100m, while
Administrative Expenses rose 26% to Rs275m.
Other Charges escalated significantly to Rs151m from just
Rs741k last year, and Allowance for Expected Credit Losses (ECL) jumped sharply
to Rs73m.
On a positive note, Finance Cost declined 50% to Rs951m,
providing substantial relief to the bottom line. Other Income decreased 19% to
Rs43m during the period.
Profit before Taxation reached Rs1.94bn, a significant
improvement from a loss of Rs252m in the previous year. The company
recorded a taxation charge of Rs1.02bn compared to a tax credit of Rs228m last
year. Additionally, Levies decreased 95% to Rs7m, further supporting
profitability.
The strong turnaround in Mughal Iron & Steel Industries
Limited's financial performance demonstrates the company's resilience and
effective cost management strategies in a challenging operating environment.
|
STATEMENT OF PROFIT OR
LOSS FOR THE QUARTER ENDED SEPTEMBER 30, 2025 (Rs.) |
|||
|
Description |
2025 (Rupees) |
2024 (Rupees) |
Change% |
|
Gross sales |
22,616,498,466 |
24,646,439,209 |
-8.24% |
|
Sales tax |
(2,510,648,018) |
(3,045,609,890) |
-17.57% |
|
Net sales before
commission |
20,105,850,448 |
21,600,829,319 |
-6.92% |
|
Commission |
(14,096,348) |
(16,670,631) |
-15.44% |
|
Net sales |
20,091,754,100 |
21,584,158,688 |
-6.91% |
|
Cost of sales |
(16,637,353,552) |
(19,595,404,314) |
-15.10% |
|
GROSS PROFIT |
3,454,400,548 |
1,988,754,374 |
73.70% |
|
Sales and marketing
expenses |
(99,735,426) |
(35,785,762) |
178.70% |
|
Administrative expenses |
(274,646,390) |
(217,239,247) |
26.43% |
|
Other charges |
(150,509,033) |
(740,958) |
20212.76% |
|
Allowance for expected
credit losses (ECL) |
(72,512,305) |
(4,739,073) |
1430.09% |
|
Other income |
42,876,531 |
52,988,315 |
-19.08% |
|
Finance cost |
(951,041,549) |
(1,890,834,092) |
-49.70% |
|
Subtotal of
Expenses/Income |
(1,505,568,172) |
(2,096,350,817) |
-28.18% |
|
PROFIT / LOSS BEFORE
LEVIES AND TAXATION |
1,948,832,376 |
(107,596,443) |
|
|
Levies |
(7,004,692) |
(143,996,790) |
-95.14% |
|
PROFIT / LOSS BEFORE
TAXATION |
1,941,827,684 |
(251,593,233) |
|
|
Taxation |
(1,016,126,891) |
227,882,025 |
|
|
PROFIT / LOSS FOR THE
PERIOD |
925,700,793 |
(23,711,208) |
|
|
EARNINGS / (LOSS) PER
SHARE-BASIC AND DILUTED |
2.51 |
(0.07) |
-3685.71% |