Crescent Steel Reports Sharp Rise in Consolidated Profit for Nine Months

Crescent Steel and Allied Products Limited (CSAPL) has reported a significant improvement in its consolidated profitability for the nine-month period ended March 31, 2026, despite a decline in sales compared with the same period last year.

The company informed the Pakistan Stock Exchange that its Board of Directors approved the unaudited condensed interim financial statements for the nine months ended March 31, 2026, at a meeting held on April 21, 2026. The company declared no cash dividend, bonus shares or right shares for the period.

Consolidated profit rises substantially

According to the consolidated financial statements, CSAPL recorded sales of approximately Rs6.28 billion during the nine months ended March 31, 2026, compared with Rs6.52 billion in the corresponding period of 2025.

Despite the lower sales, the company’s financial performance improved considerably at the bottom line. Consolidated net profit for the period reached Rs770.9 million, compared with Rs332.8 million a year earlier. This represents an increase of more than 130% year-on-year.

The company’s consolidated earnings per share also strengthened significantly, rising to Rs9.93 from Rs4.29 in the same period last year.

Investment income supports earnings

One of the major contributors to the improvement was the company’s investment performance. The consolidated statement shows a net income from investments of Rs435.8 million during the nine-month period, compared with a net loss of around Rs32.1 million in the previous year.

The company also reported a substantial improvement in results from discontinued operations, recording a profit of Rs77.4 million, compared with a loss of Rs145.1 million in the corresponding period of 2025.

These factors helped offset pressure from the company’s operating performance and contributed to the strong overall increase in consolidated earnings.

Cash generation improves

CSAPL’s consolidated cash-flow position also showed a notable improvement in operating activities. Cash generated from operations increased to approximately Rs2.66 billion, compared with Rs886.4 million in the previous year’s nine-month period.

Net cash generated from operating activities stood at around Rs2.22 billion, up sharply from Rs272.1 million a year earlier.

At the same time, the company continued to invest in its operations, with capital expenditure of approximately Rs863.2 million during the period. Financing activities resulted in a net cash outflow of about Rs1.55 billion, largely reflecting loan repayments, lease payments and dividends.

Unconsolidated results present a different picture

The company’s standalone financial statements tell a different story. Unconsolidated net profit for the nine months stood at approximately Rs697.1 million, compared with Rs1.63 billion in the corresponding period of 2025.

Standalone earnings per share consequently declined to Rs8.98, from Rs20.98 a year earlier.

The standalone results were affected by a significant reduction in investment-related income compared with the previous year, highlighting the important role that investment performance played in CSAPL’s earnings during the comparative period.

Stronger financial position in some areas

The consolidated balance sheet also shows changes in the company’s asset and liability structure. Total consolidated assets stood at approximately Rs12.01 billion as of March 31, 2026, compared with Rs15.65 billion at June 30, 2025.

Consolidated trade receivables declined to around Rs1.19 billion, from Rs1.64 billion, while short-term investments increased substantially to approximately Rs2.98 billion, compared with Rs2.49 billion at the end of June 2025.

The company also reported consolidated short-term borrowings of around Rs967.1 million, significantly below the Rs1.97 billion recorded at June 30, 2025.

Outlook

Crescent Steel’s nine-month results present a mixed but notable financial picture. While sales remained below the previous year’s level and standalone earnings declined, the consolidated business delivered a substantial improvement in profitability, supported by investment income, discontinued operations and stronger operating cash generation.

The results indicate that investment and non-operating factors played an important role in strengthening the group’s bottom line during the period. Investors will likely watch the company’s final-quarter performance closely to assess whether the improvement in consolidated profitability can be sustained through the full financial year.

Source: Crescent Steel and Allied Products Limited, unaudited condensed interim financial statements for the nine months ended March 31, 2026. The financial statements are presented in the company’s filing across pages 2–9, including the consolidated profit and loss statement on page 7 and consolidated cash-flow statement on page 9.