The company's net sales surged by 47.4% to 46.04 billion Rs (USD 165 million), while gross profit soared by 49.45% to 5.02 billion Rs (USD 18 million).
Pre-tax profit also rose by 44.81% compared to the same period last year, reaching 1.55 billion Rs (USD 5 million). However, the company experienced a 4.01% decrease in net profit, dropping from 1.34 billion Rs (USD 4.8 million) in 1HFY23 to 1.28 billion Rs (USD 4.6 million) in 1HFY24.
The company's strong performance is attributed to high sales prices and an increase in the volume of iron and non-iron segments. In 2QFY24, there was a significant increase of 45.7% in net sales and 96.24% in gross profit.
Mughal Iron and Steel Industries' performance indicates a strong growth momentum for the company. Leveraging high sales prices and increased volumes may enable the company to maintain a robust performance in the upcoming fiscal years.
However, the decline in net profit could be a result of rising costs and finance charges. Controlling these costs will be crucial for the company to sustain profitability in the future.
Overall, Mughal Iron and Steel Industries' performance in 1HFY24 showcases the company's solid financial position and its continued growth prospects.
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