Mughal profit outlook dims on lower copper sales

Mughal Iron & Steel Industries Ltd. (PSX: MUGHAL) has reported a sharp drop in profitability for the nine‑month period to 31 March 2025. Consolidated after‑tax profit fell 70% year‑on‑year to Rs412 million, driving earnings per share down to Rs1.23 from Rs4.15 a year earlier. Top‑line activity was broadly flat: gross sales slipped just 1% to Rs75.7 billion, but gross margins narrowed and finance costs swelled, eroding the bottom line.

On a standalone basis the picture was only marginally better, with net profit of Rs453 million (EPS Rs1.35) versus Rs1.39 billion last year. Management blamed the earnings squeeze on a combination of higher borrowing costs linked to Sukuk financing and a marked contraction in non‑ferrous (copper) sales, which traditionally carry far fatter margins than the company’s core steel products.

The headline revenue line conceals a decisive rotation inside the product portfolio.