February 19, 2020 (MLN): Aisha Steel Limited has incurred losses of Rs. 285 million for the half year ended December 31, 2019, i.e. 4.5x greater than the losses reported in same period of last year. The company declared a Loss per share of Rs. 0.45, which is about 3.5x higher than the same period of last year.
The company reported a 1.3x increase in sales revenue, owing to the introduction of Hot Dipped Galvanized Coil. Even though there was a somewhat equal increase in cost of production, the gross profits of the company still managed to surge by 97.2%.
However, it was the rise in finance cost by 91% which turned the company’s profits into losses. The company’s financing expenses increased mainly due to higher borrowing cost and running finance requirement.
The company also shed some light on the recent fire incident that took place in one of its production facilities. In a report sent to Pakistan Stock Exchange, the company stated that it completed its assessment of the fire incident that occurred at its Rolling Mill of the old plant (Line-1), and deduced that the fire was caused by splashes from gas cutting operation during maintenance.
It further informed that the equipment around the main housing was damaged including control cabinets, measuring devices, hydraulic stations, oil mist stations etc.
‘Due to urgency, after taking approval of the insurance company, the recovery operation was initiated in house by engineers of ASML. After a month of hard work, the company was able to completely rebuild the machine, and critical functionality of the Rolling Mill has commenced during the second week of February 2020’ the report added.
Profit and Loss Account for the Half Year Ended December 31, 2019 (Rupees '000) | |||
|---|---|---|---|
2019 | 2018 | % Change | |
Net revenue from contracts with customers | 17,551,055 | 7,600,434 | 130.9% |
Cost of sales | (16,291,885) | (6,961,831) | 134.0% |
Gross Profit | 1,259,170 | 638,603 | 97.2% |
Selling and distribution cost | (22,426) | (11,135) | 101.4% |
Administrative expenses | (165,363) | (128,432) | 28.8% |
Other expenses | – | – | – |
Other income | 29,987 | 17,154 | 74.8% |
Profit from operations | 1,101,368 | 516,190 | 113.4% |
Finance cost | (1,639,969) | (858,778) | 91.0% |
Loss before taxation | (538,601) | (342,588) | 57.2% |
Taxation | 253,297 | 291,172 | -13.0% |
Loss after taxation | (285,304) | (51,416) | 454.9% |
Earnings/(loss) per share – Basic and Diluted | (0.45) | (0.10) | 350.0% |
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