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 | – |
Amount in thousands except for EPS
Copyright Mettis Link News
Posted on: 2024-04-29T15:30:44+05:00
