Aisha Steel Mills posts net profits of Rs 660 mln in 1QFY21

By MG News | October 21, 2020 at 11:45 AM GMT+05:00

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October 21, 2020 (MLN): Aisha Steels Limited (ASL) has posted net profits of Rs 660.2 million for the quarter ended on September 30^th, 2020 against the net loss of Rs 203.9 million incurred in the same quarter last year.

This caused the earnings per share (basic) to clock in at Rs 0.82 against the loss per share of Rs 0.29.

The profitability of the company can be attributed to increase in demand after resumption of economic activity.

The net revenues of the company jumped by 82% YoY from Rs 6 billion to Rs 11.2 billion. The rise in revenues can be due to higher demand from 2/3-wheeler autos segment (2/3-wheeler sales up 22.1%YoY and 1.38x QoQ), said the report from Taurus Securities.

In addition to this, owing to the increase in prices during the quarter, the gross margins of the company rose to 13% from 18.9% in the corresponding quarter last year.

Furthermore, since the company’s books are highly leveraged and with the fall in interest rates gave a breather to ASL’s net profitability as its finance cost declined notably by 38% YoY..

Profit and Loss Account for the Quarter Ended September 30, 2020 (Rupees '000)
	Sep-20	Sep-19	% Change
Revenue from contracts with customers	11,205,862	6,160,186	81.9%
Cost of sales	(9,729,701)	(5,607,465)	73.5%
Gross Profit	1,476,161	552,721	167.1%
Selling and distribution cost	(12,112)	(11,382)	6.4%
Administrative expenses	(71,316)	(79,173)	-9.9%
Other expenses	(64,264)	-
Other income	12,156	16,365	-25.7%
Profit from operations	1,340,625	478,531	180.2%
Finance cost	(443,518)	(718,556)	-38.3%
(Loss) before income tax	897,107	(240,025)
Taxation	(236,883)	36,030
(Loss)/ profit after taxation	660,224	(203,995)	-
Earnings/(loss) per share - Basic	0.82	(0.29)	-

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