Watani Iron Steel Co (9513.SR) Q3 2024 Earnings Report

Watani Iron Steel Co reported a solid year-over-year expansion in revenue for the QQ3 2024 quarter, supported by a 32.8% YoY rise to SAR 139.65 million, with net income of SAR 3.23 million and EPS of SAR 0.0177. EBITDA totaled SAR 9.83 million and operating income SAR 4.76 million, underscoring earnings growth despite margin pressures. Free cash flow reached SAR 5.25 million, and operating cash flow was SAR 7.17 million, signaling positive cash generation and relatively lean capital expenditure (CAPEX) for the period. On the balance sheet, Watani maintains a robust equity base (SAR 251.36 million) but exhibits liquidity challenges, including a current ratio of 0.74 and inventories standing at SAR 64.82 million. Net debt stood at SAR 52.10 million, with total debt of SAR 64.16 million, signaling moderate leverage in a capital-intensive sector. Management commentary is not available in the provided transcript, limiting explicit forward-guidance quotes; nonetheless, the quarterly results imply a company transitioning through margin headwinds while capitalizing on top-line growth and cash generation. The stock trades at a price-to-book of ~1.62 and a price-to-earnings around 31.5x, suggesting a valuation reflecting modest growth expectations given the current profitability and liquidity profile.