Agha Steel Industries Ltd

Agha Steel Industries Ltd exhibits a distressed capital structure characterized by significant leverage and acute liquidity constraints. The company carries long-term debt of PKR 24.5 billion against total equity of PKR 20.9 billion, resulting in a debt-to-equity ratio of 1.17. Liquidity is severely constrained, evidenced by a current ratio of 0.34, indicating that current liabilities far exceed current assets. The balance sheet reflects total liabilities of PKR 34.8 billion against total assets of PKR 55.7 billion. Operating cash flow is negative at PKR -0.6 billion, and free cash flow is deeply negative at PKR -6.5 billion, driven by capital expenditures of PKR -0.7 billion. The risk assessment flags negative net cash after subtracting total debt, confirming a reliance on external financing or asset liquidation to meet obligations.

Profitability metrics are deeply negative, reflecting a severe operational downturn. The company reports a net loss of PKR 7.2 billion on revenue of PKR 10.7 billion, resulting in a return on equity of -39.3% and a return on assets of -14.8%. Gross profit is negative at PKR -2.0 billion, indicating that the cost of goods sold exceeds revenue, a critical failure in core unit economics. Operating income is negative at PKR -7.1 billion, suggesting that fixed costs and overheads are not covered by operating margins. Without cohort median data for direct comparison, the absolute magnitude of these losses indicates a fundamental breakdown in the business model's current execution, likely exacerbated by input cost inflation or demand destruction in the steel sector.

Free cash flow improved by 16.3% year-over-year to negative 6.47 billion PKR, indicating a slight reduction in cash burn.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value from new issuances.

Credit risk is rated low, implying the company maintains a manageable default profile despite its significant financial losses.

The debt-to-equity ratio stands at 1.17, significantly exceeding the cohort median of 0.38 and indicating high leverage.

Revenue PKR 13.69B, −33,5% YoY; Operating income −928,3% YoY.

• ▍Revenue PKR 13.69B, −33,5% YoY
• ▍Operating income −928,3% YoY
• ▍Net income −662,3% YoY
• ▍Free cash flow −532,0% YoY
• ▍Net margin -37.2%

Revenue PKR 20.58B, −19,8% YoY; Operating income −67,9% YoY.

• ▍Revenue PKR 20.58B, −19,8% YoY
• ▍Operating income −67,9% YoY
• ▍Net income −51,2% YoY
• ▍Free cash flow −433,3% YoY
• ▍Net margin 4.4%

Revenue PKR 25.65B, +29,2% YoY; Operating income +6,2% YoY.

• ▍Revenue PKR 25.65B, +29,2% YoY
• ▍Operating income +6,2% YoY
• ▍Net income −8,9% YoY
• ▍Free cash flow +80,9% YoY
• ▍Net margin 7.2%

Revenue PKR 19.86B; Operating income PKR 2.51B.

• ▍Revenue PKR 19.86B
• ▍Operating income PKR 2.51B
• ▍Net margin 10.3%