Pakistan’s Aisha Steel Limited reported losses in the first half of fiscal year 2025, ending December 31, 2024, according to a stock exchange disclosure.
The company posted a net loss of PKR 1.7 bln (USD 6 mln), a sharp decline from the PKR 132 mln profit recorded in the same period last year. Sales revenue also dropped significantly to PKR 12.92 bln (USD 46 mln), down from PKR 22.64 bln.
Sales volume fell by 34pct YoY to 56,408 tons, while exports plunged to 4,087 tons from 8,627 tons. Steel production declined nearly 31pct YoY to 63,141 tons. Meanwhile, finished goods inventory increased 12pct to 11,946 tons.
Despite the losses, Aisha Steel noted improving economic indicators, with inflation easing and the discount rate dropping to 14pct in December 2024 from a peak of 22pct in June 2023. The exchange rate remains stable, and raw material imports have improved. A slow economic recovery is anticipated, alongside rising steel demand.
The company highlighted intensified competition from imports, particularly a sharp rise in galvalume imports in H1 FY25, likely due to circumvention of antidumping duties. Aisha Steel has approached the National Tariff Commission (NTC) to bring galvalume and similar products under antidumping measures. In September 2024, the NTC launched an investigation into allegations that Chinese exporters were evading duties by modifying galvanized steel products with aluminum and other metals. Pakistan initially imposed antidumping duties on Chinese galvanized steel in 2017, which were extended for another five years in 2022.
Looking ahead, Aisha Steel expects a stable near-term outlook. While IMF-mandated reforms have increased business costs, they have helped stabilize the economy and control inflation. The discount rate has now fallen to 12pct, and early signs of demand recovery are emerging. However, intense price competition with cheaper imports has pressured margins. The company expects sales volume and profitability to improve in the remaining two quarters as HRC costs align with market prices and demand picks up.
Aisha Steel started its commercial operation in 2012 and is one of the largest manufacturers of flat rolled steel located in Port Qassim, Karachi. The company’s annual capacity of cold rolled steel is 700,000 tons and galvanized steel is 250,000 tons.
1 USD / 280.6 PKR