Amreli Steels faces financial downturn in Q1 2024

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MG News | April 26, 2024 at 04:30 PM GMT+05:00

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April 26, 2024 (MLN): Amreli Steels Ltd. (PSX: ASTL) reported its profit and loss statement for the first quarter of 2024, wherein it incurred a loss of Rs665.8 million [LPS: Rs2.24] compared to a profit of Rs475.71m [EPS: Rs1.60] earned in the same period last year (SPLY).

Going by the results, the company's sales marked a decline of 4.2% YoY to Rs11.18bn as compared to Rs11.67bn in SPLY.

Furthermore, the cost of sales rose by 7.7% YoY, worsening the gross profit by 57.8% YoY to Rs888.29m in 1Q2024.

The gross margins fell sharply to 7.94% as compared to 18.06% in SPLY.

During the review quarter, other income increased by 4.7x YoY to stand at Rs25.98m in 1Q2024 as compared to Rs5.5m in SPLY.

The company’s finance cost soared by 29.9% YoY and stood at Rs1.29bn as compared to Rs991.56m in SPLY, mainly due to higher interest rates.

Unconsolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000)
  Mar 24 Mar 23 % Change
Sales 11,182,624 11,666,940 -4.15%
Cost of sales (10,294,339) (9,559,890) 7.68%
Gross Profit/ (loss) 888,285 2,107,050 -57.84%
Administrative Expenses (202,370) (191,834) 5.49%
Selling And Distribution Expenses (319,714) (246,353) 29.78%
Other Gains / (Losses) (47,293) (102,535) -53.88%
Other Income 25,980 5,502 372.19%
Other Operating Expenses 6,631 (33,663) -
Finance Cost (1,287,686) (991,563) 29.86%
Profit/ (loss) before taxation (936,167) 546,604 -
Taxation 270,364 (70,891) -
Net profit/ (loss) for the period (665,803) 475,713 -
Basic earnings/ (loss) per share (2.24) 1.60 -

Amount in thousand except for EPS

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