Amreli Steels posts nearly Rs3bn loss for 9MFY25, up 120% YoY

April 30, 2025 (MLN): Amreli Steels Limited (PSX: ASTL) reported a net loss of Rs2.86bn for the nine-month period ended March 31, 2025, more than double the Rs1.30bn loss recorded in SPLY— reflecting a 120% year-on-year increase.

The loss for the period stood at Rs2.86bn, translating to a loss per share of Rs9.62, compared to Rs4.37 in the prior period.

Sales plunged 61% to Rs12.91bn from Rs33.43bn, while cost of sales dropped 58% to Rs12.57bn, resulting in a sharp 90% decline in gross profit to just Rs340m compared to Rs3.38bn in the previous period.

The steep decline in revenue and rising operating costs significantly pressured margins.

Distribution and administrative expenses were cut by 49% and 11% respectively, but other expenses surged 170% to Rs314 million.

Despite a reversal of expected credit losses amounting to Rs78m and a 327% increase in other income to Rs120m, the company posted an operating loss of Rs792m versus an operating profit of Rs1.70bn a year earlier.

Finance costs remained substantial at Rs3.14bn, although 12% lower than the previous year's Rs3.55bn, pushing the company deeper into the red.