MUGHAL - 1QFY24 Result Review, (AKD Off the Analyst's Desk Oct 27, 2023)
AKD, Off the Analyst's Desk
MUGHAL - 1QFY24 Result Review
Mughal Iron & Steel Industries Limited announced its 1QFY24 results, where the company posted an earnings of PkR515mn (EPS: PkR1.53), reflecting a 38% decline compared to PkR834mn (EPS: PkR2.48) last quarter. This decline is majorly attributable to a descend in gross margins (12% in 1QFY24) when compared to last quarter of 16.16%.
- Topline for the quarter increased by 11%QoQ to PkR21bn, exhibiting the highest quarterly revenue in the last 5 years. This is majorly attributable to high retail prices, averaging at PkR275k/ton during the quarter.
- Although, revenues increased for the quarter, cost of sales also increased by 17% to conclude at PkR15.9bn, which can possibly be explained by high power tariffs and raw material costs.
- On the operating front, sales and marketing expenses increased drastically by 2.83xQoQ to PkR72mn, staying aligned with higher sales for the quarter.
- Finance costs saw a slight increase of 4%QoQ to conclude at PkR1.6bn for 1QFY24, introspecting a possible increase in short term borrowings.
- Effective tax rate for the period was 29%, lower amidst the absence of retrospective super tax charge impact when compared to the quarter before (ET in 4QFY23: 39%).
AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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