Mughal Steel, one of the leading companies of Pakistan in the iron and steel sector, has announced plans to upgrade its steel bar re-rolling mill in Pakistan, aiming to enhance its production capabilities through the BMR project. The upgrade will enable the company to optimize its current capacity, allowing for the flexible production of steel products.
This BMR project is expected to significantly boost the utilization of the re-rolling mill while also diversifying Mughal Steel’s product offerings, strengthening its competitive position in the market. Once the upgraded facility becomes operational, it is projected to produce between 8,000 and 10,000 tons of steel per month. The estimated investment for the upgrade is PKR 2 billion (approximately USD 7.19 million).
In addition to the project announcement, Mughal Steel also released its financial results for the fiscal year 2024, which concluded in June. The company reported a 38% increase in sales, reaching PKR 106 billion (USD 380.79 million), surpassing the PKR 100 billion milestone for the first time.
Despite the strong sales performance, profits dropped by 43% y-o-y, amounting to PKR 1.99 billion (USD 7.14 million). This decline in profitability is primarily attributed to a 44% rise in finance costs, which totaled PKR 6.36 billion (USD 22.85 million).
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