The Pakistan Steel Mill (PSM) could not achieve the target set for the production due to the outstanding repairable work of various operational units, particularly the coke oven batteries of the plant.
According to first quarter performance report, the PSM projected 90 percent capacity utilisation for steel production for the first quarter of July-September FY06, whereas it attained 34 percent capacity utilisation, during the quarter under reference.
The net sales and the other income of the PSM were projected at Rs 8,264 million for the first quarter of July-September FY06. However, it could not achieve the target and its sales and income remained at Rs 4,533 million, which is 54.8 percent of the target.
According to report, the cost of production for the first quarter, July-September FY06, was projected at Rs 7,446 million and the Mills incurred the cost of Rs 4,295 million, which is less than Rs 3,151 million of the projected amount. The PSM could not spend amount of the projected cost for want of its required raw materials.
The Corporation projected a net profit of Rs 531 million for the first quarter, July-September FY06. However, it earned only Rs 155 million, which is less than Rs 376 million against its projected profit.
The Company had an opening cash balance of Rs 11.125 billion at the start of the first quarter (July-September FY06) and the Mills projected, net cash flow of Rs 10, 629 million uptill the end of September, 2005. However, the net cash of Rs 11.843 billion was available with the Company at the end of September 2005.