ASTL struggles to maintain profitability, 84.14% YoY decline in 9MFY23

MG News | April 27, 2023 at 04:03 PM GMT+05:00

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April 27, 2023 (MLN): Amreli Steel Limited (ASTL) experienced a massive decline of 84.14% YoY in profitability, clocked in at Rs290.96 million [EPS: Rs0.98] during 9MFY23, as compared to Rs1.83 billion [EPS: Rs6.18] in the same period last year (SPLY).

During the period under review, the company witnessed a fall in topline by 18.43% YoY to Rs34.69bn as compared to Rs42.53bn in SPLY.

On the cost front, the distribution cost fell by 8.04% YoY to stand at Rs745.39m, while administrative expenses inched up slightly by 2.97% YoY and stood at Rs526.46m in 9MFY23.

Meanwhile, the company incurred a provision of expected credit loss of Rs155.07m, surging by 14.60x YoY.

During the review period, other expenses fell sharply by 67.77% YoY at Rs55.01m, while other income also saw a decline of 46.85% to Rs12.4m.

The company’s finance cost soared by 96.17% YoY to Rs2.95bn in 9MFY23 due to higher interest rates, which hurt its profitability.

On the taxation front, the company received a tax credit of Rs161.52m as compared to paying a tax of Rs281.15m in SPLY.

Profit or Loss Account for the nine months ended March 31, 2023 (Rupees in '000')
	Mar-23	Mar-22	% Change
Sales	34,697,823	42,537,223	-18.43%
Cost of sales	(30,148,298)	(37,438,087)	-19.47%
Gross Profit	4,549,525	5,099,136	-10.78%
Distribution cost	(745,398)	(810,584)	-8.04%
Administrative expenses	(526,460)	(511,289)	2.97%
(Provision)/ reversal of expected credit loss	(155,075)	(10,618)	1360.49%
Other expenses	(55,011)	(170,668)	-67.77%
Other income	12,400	23,329	-46.85%
Operating profit	3,079,981	3,619,306	-14.90%
Finance costs	(2,950,535)	(1,504,100)	96.17%
Profit before taxation	129,446	2,115,206	-93.88%
Taxation	161,523	(281,155)	-
Net profit for the period	290,969	1,834,051	-84.14%
Basic and diluted earnings/ (loss) per share	0.98	6.18	-

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