Agha Steel reports 43% YoY increase in net profits

MG News | March 01, 2021 at 06:19 PM GMT+05:00

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March 1, 2021 (MLN): Agha Steel Industries has reported net profits of Rs 1 billion, which was 43% higher than the profits of Rs 737.2 million reported in the corresponding period last year.

The earnings per share of the company clocked in at Rs 2.13/sh.

During the period, the net sales of the company increased significantly resulting in a net revenue of Rs. 10,279 million as compared to Rs. 7,042 million in the corresponding period last year with an overall growth of 45.96%

The increase in topline is associated with higher domestic rebar prices and volumetric sales.

However, despite rise in average rebar prices and volumetric sales, the gross margin decreased to 20% during the period from 24% in 1HFY20. This can be attributed to price discounts and higher power cost.

On the cost front, AGHA’s admin cost jumped by 48.3% YoY while its distribution cost went up by 68% YoY. On the flip side, finance costs declined by 45%YoY due to lower interest rates.

Earnings further strengthened due to income earned from other sources which surged significantly by 64.5% YoY during the review period.

Furthermore, the company paid taxes of Rs 202.4 million compared to the tax credit of Rs 168.8 million in the same period last year.

Profit and Loss Account for the half-year ended December 31, 2020 ('000 Rupees)
	Dec-20	Dec-19	% Change
Turnover -gross	12,026,053	8,238,973	45.97%
Sales tax	(1,747,389)	(1,197,115)	45.97%
Turnover-net	10,278,664	7,041,858	45.97%
Cost of sales	(8,200,637)	(5,330,917)	53.83%
Gross profit	2,078,027	1,710,941	21.46%
Administrative expenses	(149,841)	(101,004)	48.35%
Selling and distribution expenses	(184,807)	(109,904)	68.15%
Finance Cost	(532,912)	(971,881)	-45.17%
Operating Profit/loss	1,210,467	528,152	129.19%
Other expenses	(100,642)	(50,807)	98.09%
Other income	149,817	91,071	64.51%
Profit/Loss before taxation	1,259,642	568,416	121.61%
Taxation-net	(202,446)	168,858	-
Profit after taxation	1,057,196	737,274	43.39%
Earnings per share - basic	2.13	1.95	9.23%
Diluted	2.130	1.66	28.31%

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