Pakistan’s Agha Steel Industries Limited reported a loss of PKR 5 bln (USD 18.3 mln) for the fiscal year ending June 30, 2024, marking a sharp reversal from the PKR 980 mln profit recorded in the previous fiscal year, according to the company’s stock exchange filing.
Revenue also took a significant hit, falling 33.5pct YoY to PKR 13.69 bln (USD 49 mln). The company attributed part of its financial difficulties to a steep rise in finance costs, which jumped 43pct YoY to PKR 4.58 bln (USD 16.4 mln), largely driven by higher interest rates.
In the final quarter of FY 2024 (April-June), Agha Steel posted a loss of PKR 3.05 bln (USD 10.9 mln), compared to a profit of PKR 199.9 mln during the same period last year. Revenues for the quarter plummeted nearly 67pct YoY to PKR 1.7 bln (USD 6.1 mln).
The broader challenges facing Pakistan’s long steel producers, including Agha Steel, are largely tied to the country’s ongoing economic and political turmoil. Austerity measures, such as import restrictions, rising interest rates, and increased energy tariffs, have particularly strained energy-intensive industries like steel. Additionally, slower economic growth has dampened construction activity, reducing demand for rebar and other steel products.
Last month, Agha Steel disclosed that it received a Public Announcement of Intention from Fauji Foundation, a major Pakistani conglomerate, expressing interest in acquiring shares and control of the company.
Agha Steel operates an EAF plant in Port Qasim, Karachi, with an annual capacity of 450,000 tons for billets and 650,000 tons for rebar.
1 USD / 277.9 PKR
