Amreli Steels reports massive Rs6.1bn loss for FY24

September 23, 2024 (MLN): Amreli Steels Ltd. (PSX: ASTL) recorded a massive loss of Rs6.11 billion [LPS: Rs20.56] during the fiscal year 2024, around 776% higher compared to the negative bottom line of Rs697.2m [LPS: Rs2.35] reported in the previous fiscal year.

According to the profit and loss account, the company's top line dropped 14.8% to Rs38.78bn as compared to Rs45.49bn in SPLY.

The cost of sales also fell by 8% but as the reduction in sales was of a greater proportion, the gross profit worsened by 59.7% to Rs2.4bn in FY24.

Accordingly, the gross margins worsened to 6.2% as compared to 13.1% in SPLY.

Burdened by declining sales, ASTL faced additional challenges as expenses rose across various segments.

The administrative expenses rose 12.2% YoY to Rs842.4m, distribution cost rose 10.5% YoY to Rs1.11bn, and other operating expenses rose 136.9% YoY to Rs199.21m.

Additionally, the company faced a substantial expense of Rs379.21m as allowance for expected credit losses

During the period under review, other income fell by 62.0% to stand at Rs3.16m in FY24 as compared to Rs8.31m in SPLY.

The company’s finance cost skyrocketed by 18% and stood at Rs4.77bn as compared to Rs4.04bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.2bn against the Rs652.57m paid in the corresponding period of last year, depicting a rise of 84.4%.

Amount in thousand except for EPS

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