February 8, 2021 (MLN): Amreli Steels Limited has reported earnings of Rs. 423 million (EPS: 1.42) for the half-year ended December 31, 2020, as opposed to the losses of Rs. 313.4 million (LPS: 1.06) reported in the same period of last year.
The company saw a 28% improvement in revenue due to recovery in sales volumes amid higher development activities and higher prices of rebars, a report by IGI Securities said.
Similarly, the gross profit went up by 49.6% due to swift pass over of cost burden to consumers via price increases, better utilization of fixed costs amid improved volumes.
Further respite was drawn from a 31% drop in finance costs due to reduction in interest rates, as well as presence of tax credit amounting to Rs. 70.3 million.
Financial Results for the Half-Year ended December 31, 2020 (Rupees in '000)
Dec-20
Dec-19
% Change
Sales
17,452,259
13,642,337
27.9%
Cost of sales
(15,561,517)
(12,378,447)
25.7%
Gross profit
1,890,742
1,263,890
49.6%
Distribution costs
(444,801)
(327,481)
35.8%
Administrative expenses
(258,055)
(241,067)
7.0%
Reversal of / (allowance for) expected credit loss
