Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has sustained its stability rating for Mughal Iron and Steel Industries Limited (MISIL), reflecting robust sales growth despite economic headwinds. MISIL reported its highest-ever topline for the first nine months of fiscal year 2023, driven by increased selling prices and volumes in its ferrous operations, although non-ferrous volumes fell due to internal reallocation of resources.

According to The Pakistan Credit Rating Agency Limited, MISIL's revenue surged 38% from PKR 48 billion to PKR 67 billion during the period, primarily due to price hikes in both ferrous and non-ferrous segments and a rise in ferrous volume. However, the company’s overall profit margins declined by 47%, dropping from PKR 2.6 billion to PKR 1.4 billion, largely because of increased operational costs in the ferrous sector. Additionally, finance costs have risen sharply in response to high base discount rates.

The maintenance of the company’s ratings hinges on its ability to navigate the broader economic slowdown effectively. With recent upgrades such as the installation of an induction furnace and a continuous casting machine, along with the operationalization of its coal-based Mughal Energy power plant, MISIL is expected to enhance operational efficiencies moving forward.