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

MG News | April 29, 2024 at 03:30 PM GMT+05:00

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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.

Unconsolidated (un-audited) Financial Results for the quarter ended March 31, 2024 (Rupees in '000)
	Mar 24	Mar 23	% Change
Net Revenue	2,646,796	5,688,928	-53.47%
Cost of sales	(3,231,543)	(4,316,385)	-25.13%
Gross Profit/ (loss)	(584,747)	1,372,543	-
Administrative Expenses	(70,272)	(104,422)	-32.70%
Selling And Distribution Expenses	(60,522)	(136,875)	-55.78%
Other Income	76,270	78,602	-2.97%
Other Operating Expenses	(78,492)	(102,012)	-23.06%
Finance Cost	(1,382,708)	(752,318)	83.79%
Profit/ (loss) before taxation	(2,100,471)	355,518	-
Taxation	285,309	(52,674)	-
Net profit/ (loss) for the period	(1,815,162)	302,844	-
Basic earnings/ (loss) per share	(3)	0.50	-