January 29, 2021 (MLN): Aisha Steel Mills Limited (ASL) has witnessed a turnaround in earnings as its net profits after tax clocked in at Rs 2.52 billion with earnings per share at Rs 3.21, compared to the net losses of Rs 285.3 million (LPS: Rs 0.45) incurred in the same period of last year.
The turnaround in earning can be attributed to higher volumetric growth, upbeat international HRC-CRC spread, and lower financial charges.
The net revenues of the company during the period witnessed an increase of 44.8% YoY due to robust volumetric growth. However, the cost of sales did not increase at the same pace as sales revenue. As a result, the gross margin of the company improved to 18% from 7.17% in the same period a year ago.
On the expense side, the company’s sales and distribution expenses in tandem with sales jumped to 43.28 million, up by 93% YoY, While the administrative expenses fall slightly by 8% YoY.
Furthermore, due to lower interest rates and debt level, the finance cost of the company slumped significantly by 57% YoY from Rs 1.6 billion to Rs 704 million.
|
Financial Results for the six months ended December 31, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-20 |
Dec-19 |
% Change |
|
Revenue from contracts with customers |
25,417,022 |
17,551,055 |
44.8% |
|
Cost of sales |
(20,839,948) |
(16,291,885) |
27.9% |
|
Gross Profit |
4,577,074 |
1,259,170 |
263.5% |
|
Selling and distribution cost |
(43,280) |
(22,426) |
93.0% |
|
Administrative expenses |
(152,377) |
(165,363) |
-7.9% |
|
Other expenses |
(260,129) |
– |
|
|
Other income |
34,914 |
29,987 |
16.4% |
|
Profit from operations |
4,156,202 |
1,101,368 |
277.4% |
|
Finance cost |
(704,185) |
(1,639,969) |
-57.1% |
|
(Loss) before income tax |
3,452,017 |
(538,601) |
|
|
Taxation |
(931,823) |
253,297 |
|
|
(Loss)/ profit after taxation |
2,520,194 |
(285,304) |
– |
|
Earnings/(loss) per share – Basic |
3.21 |
(0.45) |
– |
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