MS AR 2018 (1)

I am pleased with the great progress we made in 2018
to strengthen the overall foundation of our Company and
drive a long term, sustainable increase in shareholder
value. Our performance was very solid in terms of
operational execution, employee safety, product quality, and
environmental compliance.
The Company’s efforts to penetrate into housing market
for steel rebars, limit its exposure to Government related
projects, remove constraints, optimize its operations and
grow its business have paid off, allowing it to achieve
sustainable and improved performance in FY 2018. Our
intensified marketing efforts have also led to an expansion
of Mughal Steel’s portfolio of markets, customers and
products.
We managed to overcome energy constraints in the
form of enhancement of our sanctioned grid station load
from 19.99 MW to 79.99 MW, enhancement of gas load
from 2.80 MMCFD to 6.30 MMCFD and commissioning
of six (6) further gas engines for generation of in-house
electricity. These achievements will not only overcome
energy constraints but also help to eliminate raw material
constraints. Subsequent to the availability of electricity
load, the Phase II of earlier expansion plan was also
approved by the Board which amongst other things included
procurement and installation of further induction furnaces.
The addition of furnaces will help to reduce reliance on
expensive outsourced billet and ensure competitiveness and
sustainability of operations.
We continue to strive for growth and increasing shareholder
value and I am yet again overwhelmed and highly pleased
to report yet another hallmark year for Mughal Steel, which
saw increase in sales revenue from Rs. 18,802.811 million in
FY 2017 to Rs. 22,225.842 million in FY 2018. Consequently
the profit for the year increased from Rs. 990.760 million
in FY 2017 to Rs. 1,290.215 million in FY 2018 resulting in
earnings per share of Rs. 5.13, compared to earnings per
share of Rs. 4.21 in the last year. As management we are
strongly committed towards continuously improving the
operational performance of your Company.
The Company has not defaulted in any repayment of
debts. During the year, the Company has contributed
approximately Rs. 2,309.199 million towards national
exchequer in shape of taxes, duties, cess, levies etc.
Lastly, I’d like to thank our employees and our members for
their support. In 2019, we will further work to enhance our
profitability and align all of our resources with the needs of
our business. I am confident that the entire Mughal Steel
team will collectively work to make us a stronger Company.
KHURRAM JAVAID
Chief Executive Officer
Lahore: September 19, 2018
Annual Report 2018
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