Lahore: Ittefaq Iron Industries Limited (ITTEFAQ) conducted a corporate briefing to discuss the company's fiscal year 2024 earnings and future outlook. The session revealed significant declines in both revenue and production volumes.

According to JS Global, ITTEFAQ reported a topline of Rs2.3 billion, reflecting a 73% year-over-year decrease, primarily due to reduced demand impacting sales volume. The company experienced a negative gross margin of 28% for the period, with a net loss of Rs822 million, translating to a loss per share of Rs5.69. Production figures showed a decrease, with rolling mill output dropping to 9,206 tons in FY24 from 34,299 tons in the previous year.

The company relies heavily on imported raw materials, including shredded scrap, HMS, and PNS, and is fully dependent on the grid for its energy needs, with power consumption ranging from 810-820 kwh/ton. Current retention prices are under pressure due to weak demand, although efforts are being made to reach break-even.

ITTEFAQ is planning to resume the production of girders, targeting 6x4 girders, which are expected to offer better margins than rebars. The management anticipates improvements in local demand for girders and channels, with increasing demand from Afghanistan as well. The company is focusing on cash-based sales to manage working capital effectively.