AGHA profit plummets by 59% YoY in 9MFY23

April 27, 2023 (MLN): Agha Steel Mills Limited (PSX: AGHA) reported a profit after tax of Rs704.99 million [EPS: Rs1.17] for the nine months ended 31 March 2023, a significant fall of 59.48% YoY as compared to profit after tax of Rs1.73 billion [EPS: Rs2.88] in the same period last year (SPLY), the company’s stock filings on the stock exchange showed.

In the filing, the company’s top line declined by 17.43% YoY to Rs15.45bn as compared to Rs18.71bn in SPLY, translating into a 15.26% lower gross profit in 9MFY23.

On the cost side, the company observed a 20.15% YoY increase in administrative expenses to clock in at Rs247.8m and a 10.76% YoY increase in selling and distribution costs to stand at Rs338.47m.

The company’s finance costs surged by 60.64% YoY and stood at Rs2.26bn as compared to Rs1.4bn in 9MFY22, mainly due to higher interest rates.

On the tax front, the company paid 22.43% YoY lower taxes worth Rs264.24m as tax payments against the Rs340.67m paid in the corresponding period of last year, which translates into an effective tax rate of 27.26%.

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