Amreli Steel’s expansion project to enhance capacity to 600,000 tpa by Feb-19: PACRA

News Image

By MG News | December 19, 2018 at 03:17 PM GMT+05:00

0:00

December 19, 2018 (MLN): Pakistan Credit Rating Agency (PACRA) has maintained entity ratings of Amreli Steels Limited at ‘A’ for long-term and ‘A1’ for short-term, with a stable outlook forecast.

According to the press release, the ratings reflect Amreli Steels' healthy business profile on account of the company’s market positioning in the industry. The company is currently working on an expansion project which would result in capacity enhancement to 600,000 tpa from 400,000 tpa of billets by Feb-19.

Amreli has already achieved 605,000 tpa of re-rolling capacity in Apr-18 and average 400,000 tpa billets capacity in Aug-17. During the first quarter of FY19, the board of directors has approved the second phase of expansion of rolling capacity from 605,000 tpa to 1,105,000 tpa, subject to the approval of technical feasibility and successful financial close.

Capacity additions by competitors is likely to heat up competition, herein, effective and timely management of capacity expansion remains important for Amreli. The company has stepped up efforts to ensure supportive supply chain to utilize enhanced capacities in a timely manner.

Meanwhile, regulatory protection to the finished product (rebar) is an added advantage for the sector. The company’s changes to organizational structure are likely to bring enhanced efficiency. The business profile of the company remained healthy on the back of enhanced capacity, improved business volumes.

However, margins declined, an industry wide phenomenon, primarily driven by increased international scrap prices. The leveraging might increase in medium term in pursuit of expansion. The ratings draw comfort from strong business acumen of Amreli Steels' sponsors - Akberali Family.

The ratings are dependent on the management's ability to sustain its business profile while benefiting from positive demand fundamentals. Utilization of enhanced capacity and upholding business margins is vital. Moreover, prudent management of financial affairs remains important

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 130,344.03
345.79M
1.67%
2144.61
ALLSHR 81,023.99
1,021.87M
1.55%
1236.37
KSE30 39,908.26
141.62M
2.05%
803.27
KMI30 189,535.00
150.29M
1.40%
2619.39
KMIALLSHR 54,783.66
508.76M
1.07%
581.78
BKTi 34,940.73
55.86M
4.37%
1464.05
OGTi 28,296.06
16.02M
1.19%
333.47
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 107,820.00 108,430.00
105,440.00
2070.00
1.96%
BRENT CRUDE 67.86 68.10
66.94
0.75
1.12%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.75
0.78%
ROTTERDAM COAL MONTHLY 108.25 110.00
108.25
0.75
0.70%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.21 66.43
65.23
0.76
1.16%
SUGAR #11 WORLD 15.78 15.97
15.71
0.08
0.51%

Chart of the Day


Latest News
July 02, 2025 at 05:29 PM GMT+05:00

CDNS revises profit rates on savings schemes


July 02, 2025 at 05:05 PM GMT+05:00

PSX in FY25: From Oof to Boom


July 02, 2025 at 05:01 PM GMT+05:00

Gold price in Pakistan falls Rs600 per tola


July 02, 2025 at 04:35 PM GMT+05:00

Oil gains slightly as market eyes Iran, OPEC+ moves


July 02, 2025 at 04:02 PM GMT+05:00

PSX Closing Bell: Record Breaker



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg