Beco Steel Ltd’s latest numbers suggest a company in the midst of a decisive up‑cycle. For the year ended June 2025 (FY25), net sales rose to roughly Rs7.5 billion from Rs3.1 billion a year earlier, a jump of about 141% as volumes grew across core long‑steel categories and copper‑related activity scaled up. Profit swung back into the black, with profit after tax of Rs111 million against a Rs91 million loss in FY24, while operating profit improved to Rs251 million from a loss in the prior year. Management’s discussion around the results pointed to a simple driver: more product out of the gates, supported by steadier gross margins despite an often choppy commodities backdrop.
Momentum continued into the new year. In 1QFY26, revenue accelerated to Rs2.3 billion from Rs446m in 1QFY25, an increase of about 420%, while profit after tax surged to Rs150m, up from a modest Rs2m a year earlier. EBITDA for the quarter climbed to Rs223m from Rs46m, reflecting operating leverage as fixed costs were spread over a much larger throughput. Although the quarterly gross margin eased to 10% from 14% in the same quarter last year, the absolute gross profit more than trebled because of scale. Selling and distribution costs remained minimal, administrative expenses were kept in check, and financial charges stayed negligible thanks to a conservative balance‑sheet approach. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
