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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