Amreli Steels strikes hard times, bending under Rs2bn loss

February 28, 2025 (MLN): Amreli Steels Limited (PSX: ASTL) reported a significant loss of Rs2 billion for the half-year period ending December 31, 2024, compared to a loss of Rs632 million in the same period last year, reflecting a 196% increase in losses.

Earnings per share (EPS) for the period stood at a loss of Rs6.31, compared to a loss of Rs2.13 per share in 2023.

The company's sales plunged by 60.4% to Rs9bn from Rs22bn in 2023, and gross profit dropped by 90% to Rs246m from Rs2.5bn.

Cost of sales also decreased by 56.7% to Rs8.6bn, but distribution costs saw a notable reduction of 44%, amounting to Rs311m.

Administrative expenses decreased by 13%, to Rs385m, while other expenses saw a drastic reduction of 74%, amounting to Rs32m.

On a positive note, the company recorded other income of Rs73.6m, a substantial increase of 3382% compared to Rs2m in 2023.

Despite these efforts, the company reported an operating loss of Rs351m compared to a profit of Rs1.3bn in the previous year.

Finance costs were slightly reduced by 1%, totaling Rs2bn, but the company’s loss before taxation ballooned by 125% to Rs3bn, compared to Rs1bn last year.

The company’s tax benefit increased by 46%, reaching Rs828m, which provided some relief.