February 26, 2020 (MLN): Amreli Steel Limited (ASTL) has announced its financial results for the half-year ended December 31, 2019, as per which, the company has suffered losses of Rs 312 million (LPS: Rs 1.06) against net profits of Rs 516 million (EPS: Rs 1.74) of the same period last year.
The main reason for the net losses incurred by the company was higher financial charges.
During the period under review, the topline jumped by 10.76% YoY to Rs 13.64 billion on an account of increase in offtake and an increase in re-bar prices. However, the gross margin fell by 3ppts from 12% to 9% owing to increase in input cost.
The primary culprit behind the red bottom line was colossal finance cost which increased by 2.5 times YoY to Rs 1.21 billion. However, the tax reversal of Rs 275 thousand came as a breather in the bottom line.
| Condensed Interim Profit or Loss Account for the Half Year Ended December 31st 2019 (Rupees in ‘000) | |||
|---|---|---|---|
|
Dec-19 |
Dec-18 |
% Change |
|
| Sales |
 13,642,337 |
 12,317,227 |
10.76% |
| Cost of sales |
 (12,378,447) |
 (10,791,903) |
14.70% |
| Gross Profit |
 1,263,890 |
 1,525,324 |
-17.14% |
| Distribution cost |
 (327,481) |
 (284,927) |
14.94% |
| Administrative expenses |
 (310,025) |
 (236,682) |
30.99% |
| Other expenses |
 (10,287) |
 (45,480) |
-77.38% |
| Other income |
 8,639 |
 29,398 |
-70.61% |
| Operating profit |
 624,736 |
 987,633 |
-36.74% |
| Finance costs |
 (1,212,839) |
 (489,638) |
147.70% |
| (Loss)/Profit before taxation |
 (588,103) |
 497,995 |
– |
| Taxation |
 275,624 |
 18,338 |
1403.02% |
| Net (loss)/profit for the year |
 (312,479) |
 516,333 |
– |
| (Loss)/earnings per share-basic and diluted |
 (1.06) |
 1.74 |
– |
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