Amreli Steels posts Rs678m loss in FY23 amid lower sales, higher finance costs

September 08, 2023 (MLN): Amreli Steels Ltd. (PSX: ASTL) unveiled its financial statement for the year ended 30 June 2023, wherein the loss after tax clocked in at 678.44 million [LPS: Rs2.28], compared to a profit of Rs1.33 billion [EPS: Rs4.46] in the previous year.

Going by the results, the company's top line decreased by 21.81% YoY to Rs45.49bn as compared to Rs58.18bn in SPLY.

The cost of sales also fell by 23.53% YoY but was not enough to offset the sales decline, worsening the gross profit by 8.15% YoY to Rs5.96bn in FY23.

During the period under review, other income fell by 66.08% YoY to stand at Rs8.31m in FY23 as compared to Rs24.51m in SPLY.

On the expense side, the company observed a decrease in distribution cost by 16.19% YoY and other expenses by 54.89% YoY to clock in at Rs1.01bn and Rs84.1m respectively during the review period.

The company’s finance costs soared by 74.83% YoY and stood at Rs4.03bn as compared to Rs2.31bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs652.57m against the Rs752.55m paid in the corresponding period of last year, depicting a fall of 13.29% YoY.

Amount in thousand except for EPS

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