Overview of Financial Performance: The financial statement of Metropolitan Steel Corporation Limited for the fiscal year ended June 30, 2024, reveals significant challenges in the company’s operations and profitability. The steel manufacturing company has shown a deepening loss compared to the previous year, attributed to increased operational costs and reduced revenue.
Revenue and Cost Analysis: In 2024, the company generated Rupees 122,475,000 in revenue, reflecting a 23% increase compared to Rupees 99,203,000 in 2023. Despite this improvement, the company incurred higher costs of sales amounting to Rupees 139,688,000, up from Rupees 106,776,000 in 2023. This resulted in a gross loss of Rupees 17,213,000 for 2024, nearly double the previous year’s Rupees 7,573,000.
Operating and Administrative Costs: The company’s administrative expenses increased marginally to Rupees 10,333,000 from Rupees 9,237,000 in 2023. Selling and distribution costs also rose slightly to Rupees 623,000, compared to Rupees 413,000 in the prior year. Consequently, the total operating loss worsened to Rupees 28,169,000, a notable increase from Rupees 17,223,000 in 2023.
Finance Costs and Other Charges: The finance costs remained low at Rupees 192,000, slightly down from Rupees 261,000 in 2023. However, the financial performance was impacted in the previous year by other charges amounting to Rupees 10,454,000, which were absent in 2024.
Other Income and Loss Before Tax: The company saw a significant decline in other income, which dropped to Rupees 4,607,000 from Rupees 14,083,000 in 2023. This decline contributed to the worsening of the company’s loss before tax, which rose to Rupees 23,754,000 in 2024 compared to Rupees 13,855,000 the previous year.
Income Tax and Comprehensive Loss: Despite the increased loss, the company’s income tax provision was Rupees 1,531,000 in 2024, slightly higher than Rupees 1,240,000 in 2023. Consequently, the loss after tax for 2024 amounted to Rupees 23,342,000, a significant deterioration from the Rupees 13,000,000 loss recorded in 2023. The loss per share, both basic and diluted, stands at Rupees 0.75, compared to Rupees 0.42 in 2023.