PAKISTAN
Metropolitan Steel Corporation Limited, a leading manufacturer of steel products including mild and high carbon steel wires, held its Corporate Briefing Session for the year ended June 30, 2025, providing an overview of its financial performance, industry challenges, and future prospects.
The company reported sales revenue of PKR 100.75 million, down 18% compared to PKR 122.48 million in FY 2024. Cost of sales decreased by 20% to PKR 112.43 million, while the gross loss narrowed to PKR 11.68 million from PKR 17.21 million in the previous year. Net loss after tax and minimum tax stood at PKR 12.42 million, compared to PKR 23.34 million in FY 2024. The company operated at a capacity utilization of 5.98% (299 tons), down from 8.50% (425 tons) last year.
The decline in sales is attributed to multiple macroeconomic factors, including rising energy prices, sluggish economic activity, and limited GDP growth of approximately 2.68%. The downturn in China’s market affected raw material prices and the global steel industry. Demand for Metropolitan Steel’s products, such as springs for mattresses and automotive components, was also dampened due to reduced purchasing power, high unemployment, and slow economic growth. Despite these challenges, the market remained receptive to the company’s offerings.
Metropolitan Steel continues to operate without any long- or short-term loans, relying entirely on internal capital for raw materials and operational expenses.
Looking ahead, the company is negotiating with Chinese suppliers for 90-day DA LC terms to enhance working capital and sales volume. With easing raw material prices and a favorable Dollar-Rupee parity, the company expects moderate growth in the industrial sector in the upcoming fiscal year.
The management emphasized that while the steel wire industry faces structural and macroeconomic pressures, Metropolitan Steel remains committed to operational efficiency, strategic supplier partnerships, and leveraging market opportunities to stabilize and grow in the year ahead. – ER News Desk
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