Agha Steel suffers massive loss of Rs1.82bn in Q12024

April 29, 2024 (MLN): Agha Steel Industries Limited (PSX: AGHA) has suffered a massive loss of Rs1.82 billion [LPS: Rs3] for the quarter ended March 31, 2024, as compared to a profit of RsRs302.84m [EPS: Rs0.50] reported in the same quarter last year (SPLY).

The suffering during the review period is due to a massive drop in sales and rising finance costs due to elevated interest rates.

Going by the results, the company's top line fell 53.5% YoY to Rs2.65bn as compared to Rs5.69bn in SPLY.

The cost of sales also reduced to Rs3.23bn in 1Q2024, but the drop in sales was of a greater proportion due to which the company reported a gross loss of Rs584.75m.

On the expense side, the company observed a fall in Administrative Expenses by 32.7% YoY and other expenses by 23.1% YoY to clock in at Rs70.27m and Rs78.49m respectively during the review period.

Likewise, Selling And Distribution Expenses also dropped by 55.78% YoY to Rs60.52m in Q12024. 

The situation for AGHA worsened further as other income declined by 3% YoY, standing at Rs76.27m in 1Q2024 compared to Rs78.6m in the same period last year.

The company’s finance cost expanded by 83.8% YoY and stood at Rs1.38bn as compared to Rs752.32m in SPLY, mainly due to higher interest rates.

On the tax front, AGHA recorded a tax credit of Rs285.31m, against the tax expense of Rs52.67m incurred in Q12023.

Amount in thousands except for EPS

Copyright Mettis Link News