Agha Steel's profit slumps by 51% YoY to Rs905m in FY23

September 26, 2023 (MLN): Agha Steel Industries Limited (PSX: AGHA)'s profitability has plunged by 51.21% YoY to Rs904.9 million [EPS: 1.50] in fiscal year 2023, compared to the Rs1.85 billion [EPS: 3.07] reported in the same period last year (SPLY), as revealed through the company's filing on PSX today.

Along with the financial results for FY23, the Board of Directors (BoD) has authorized to issue 100m preference shares at Rs10/- each, to the existing sponsors/shareholders and strategic investors, subject to SECP approval and legal compliance.

Going by the results, AGHA's top line fell by 19.49% YoY to Rs24.16bn as compared to Rs30.01bn in SPLY.

The cost of sales also fell by 21.81% YoY to Rs15.76bn in FY23, compared to the Rs20.16bn costs incurred in FY22.

Despite a higher than proportionate decline in costs of sales, the gross profit worsened by 12.21% YoY to Rs4.82bn in FY23.

On the expense side, the company observed a decrease in Selling and distribution costs by 9.57% YoY and other expenses by 76.02% YoY to clock in at Rs319.83m and Rs163.32m respectively during the review period.

Similarly, administrative expenses fell by 7.08% YoY to Rs310.91 million in FY23, compared to Rs334.6m worth of expenses incurred in SPLY.

During the review period, other income went up by 15.78% YoY to stand at Rs351.08m in FY23 as compared to Rs303.24m in FY22.

The company’s finance costs soared by 50.23% YoY and stood at Rs3.21bn compared to Rs2.14bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs263.41m against the Rs433.6m paid in the corresponding period of last year, depicting a fall of 39.25% YoY.

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