Corporate result: Mughal Iron’s earnings strengthen 11% in FY17

It makes Rs991m profit, declares Rs0.60 per share dividend

KARACHI: Mughal Iron & Steel Industries Limited has announced that it made a net profit of Rs991 million in fiscal year ended June 30, 2017, up 11% compared with Rs893 million in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Monday.

The result was in line with market expectations, said a report prepared by Taurus Securities. Earnings per share (EPS) stood at Rs3.94 in FY17 compared with Rs3.55 in the preceding year.

The iron and steel producer announced a final cash dividend of Rs0.60 per share, pushing the entire FY17 pay-out to Rs2.60 per share.



Mughal Iron’s stock fell 0.70% at Rs61.55 at the PSX. Overall, the KSE 100-share Index closed up 54 points or 0.13% at 42,841 points.

Sales revenue for the company came in at Rs18.8 billion in FY17, down a meagre 1% from Rs19 billion in the previous year despite increase of 5,400 tons in steel production.



The drop in topline was the result of 1.5% year-on-year fall in average sale prices in FY17. Profit margins dipped slightly by 52 basis points to 10.33% because of the lower average sale prices and 12% higher scrap prices year-on-year.



Mughal Iron’s revenues rose 21% quarter-on-quarter following 5% increase in average selling prices quarter-on-quarter and higher steel production as the fourth (April-June) quarter fell in a construction-friendly period.

This translated into net earnings of Rs264 million (EPS Rs1.05) in the fourth quarter, up 4% from the previous quarter.

Published in The Express Tribune, September 19^th, 2017.

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