CSAP slips to loss despite dividend payout

August 1, 2025 (MLN): Crescent Steel & Allied Products Limited (PSX: CSAP) reported a net loss of Rs43.41 million [EPS: -0.56] for the year ended June 30, 2025, compared to a profit of Rs1.27 billion [EPS: 16.38] in the same period last year (SPLY).

The company has declared a final cash dividend of Rs2.5 per share (25%), in addition to the interim dividend of Rs5 per share (50%) already paid.

Net sales fell sharply by 29.97% to Rs6.38bn from Rs9.11bn last year, primarily due to a 30.25% drop in total sales.

The cost of sales also declined by 24.29% YoY, but gross profit still dropped significantly by 43.48% to Rs1.52bn.

Total gross profit, including investment income, stood at Rs2.06bn down 37.71% YoY from Rs3.3bn.

Distribution and selling expenses decreased by 35.37% to Rs35.68m, while administrative expenses rose by 26.56% to Rs663m.

Other operating expenses increased by 9.25%, leading to a 17.02% rise in total operating expenses.

Operating profit before finance costs plunged by 56.69% to Rs1.06bn. Other income also dropped by 29.12% to Rs76m.

The company’s finance costs decreased by 41.89% to Rs289m from Rs497m in FY24.

Share of loss in equity-accounted investees amounted to Rs474.92m, compared to a profit of Rs421.03m last year.

Profit before taxation from continuing operations fell by 84.93% to Rs374.37m, while tax expenses declined by 71.74% to Rs318.78m.

As a result, net profit from continuing operations dropped by 95.90% to Rs55.59m.

The company also reported a net loss of Rs98.99m from discontinued operations, up 17.90% YoY.

Earnings per share from continuing operations declined to Rs0.72 from Rs17.46, a 95.88% decrease.

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