⚡ Flash Summary

ITTEFAQ Iron Industries Limited’s Investor Briefing Presentation for Financial Year 2025 reveals a challenging year. The company experienced a decline in net sales from 2,271.68 million in 2024 to 2,651.93 million in 2025. This led to a gross loss of (459.26) million and a net loss of (657.98) million with an EPS of (4.56). The company is focusing on cost reduction through direct procurement, energy conservation, and managing exchange rate risks.

📌 Key Takeaways

• 📉 Net sales increased to 2,651.93 million in 2025 from 2,271.68 million in 2024.
• 🚧 Cost of sales increased to (3,111.19) million in 2025 from (2,906.91) million in 2024.
• 💔 Gross profit decreased to (459.26) million in 2025 from (635.22) million in 2024.
• 💸 Operating loss increased to (594.06) million in 2025 from (806.76) million in 2024.
• 💰 Finance costs slightly increased to (88.56) million in 2025 from (88.01) million in 2024.
• 📉 Loss before taxation was (664.96) million in 2025 compared to (884.01) million in 2024.
• 📊 Loss after taxation was (657.98) million in 2025 compared to (821.69) million in 2024.
• 📉 EPS decreased to (4.56) in 2025 from (5.69) in 2024.
• 🏢 The company’s market portfolio includes retail, corporate, and government sectors.
• 🏭 G-60 re-bars are used by corporate and government sectors, while G-40 re-bars are used by retail sectors.
• ⚡️ Conservation and energy cost management are key areas of focus to improve margins.
• 💹 Exchange rate fluctuations and government policies continue to impact conversion costs.
• 💵 Government policies related to interest rates affect cost and net margin.
• 💻 Digital Analyst Connect Program for better connectivity and transparency.

🎯 Investment Thesis

Given the current financial performance and negative profitability, a SELL recommendation is appropriate. The company needs to demonstrate significant improvement in cost management and operational efficiency before a positive outlook can be considered. Price target: Below book value. Time horizon: Medium-term (1-2 years).