April 21, 2021 (MLN): Aisha Steel Mills Limited (ASL) reported its financial results for the nine months ended on March 31, 2021. The company witnessed a turnaround in earnings as its net profit clocked in at Rs4.75billion (EPS: Rs6.11) compared to the net losses of Rs438.63 million (LPS: Rs0.67) incurred in the same period of last year.
The net revenues of the company during the period witnessed an increase of 65.8% YoY due to robust volumetric growth. However, the cost of sales did not increase at the same pace but still posted an increase of 43.5%. As a result, the gross profit of the company surged to Rs8.35bn, portraying a 4x rise as compared to the same period of the previous year.
The turnaround in profit may be attributed to the increased demand in the steel sector after the gradual resumption of strict lockdown. Particularly, the rise in domestic CRC prices in tandem with international, and inventory gains boosted the company's net income.
As far as the expenses incurred, the company’s sales and distribution expenses shot up by 4.7x YoY to Rs149.4mn whereas the administrative expenses of the company inched lower by 3.7% YoY to Rs234.46mn at the period ended March’21 compared to Rs243.48mn last year.
Furthermore, due to lower interest rates and debt level, the finance cost of the company dipped significantly by 65% YoY from Rs2.64bn to Rs910mn.
|
Profit and Loss Account for the Nine Months Ended March 31, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Net revenue from contracts with customers |
40,753,631 |
24,575,334 |
65.8% |
|
Cost of sales |
(32,401,380) |
(22,576,231) |
43.5% |
|
Gross Profit |
8,352,251 |
1,999,103 |
317.8% |
|
Selling and distribution cost |
(149,396) |
(31,666) |
371.8% |
|
Administrative expenses |
(234,464) |
(243,483) |
-3.7% |
|
Other expense |
(499,171) |
– |
– |
|
Other income |
55,914 |
35,142 |
59.1% |
|
Operating profit |
7,525,134 |
1,759,096 |
327.8% |
|
Finance cost |
(910,254) |
(2,642,244) |
-65.5% |
|
Profit/(Loss) before taxation |
6,614,880 |
(883,148) |
– |
|
Taxation |
(1,863,156) |
444,519 |
– |
|
Profit/(Loss) after taxation |
4,751,724 |
(438,629) |
– |
|
Earnings/(loss) per share – Basic |
6.11 |
(0.67) |
– |
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