ASTL turns nine-month losses into profits

MG News | April 20, 2021 at 03:17 PM GMT+05:00

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April 20, 2021 (MLN): Amreli Steels Limited (ASTL) has witnessed a turnaround in net profits to Rs 926 million (EPS: Rs 3.12) for the nine months ended on March 31st, 2021 compared to the net losses of Rs 688 million (LPS: Rs 2.32) incurred in the same period last year.

The turnaround in earnings can be attributed to better retention prices and lower working capital requirements amid the reduction of interest rate by 625 bps.

During the period, the cost of sales increased by 22% YoY but a greater percentage increase in sales revenue (up by 27.3% YoY) caused gross profits to increase by around 85% YoY to Rs 3.25 billion, resulting in an increase in gross margin from 8% to 12%.

The other positive highlight is the finance cost which decreased by around 31.5% YoY from Rs 1.80 billion to Rs 1.23 billion when compared to the prior year due to the lower interest rate regime.

Profit or Loss Account for the nine months ended March 31, 2021 (Rupees in '000')
	Mar-21	Mar-20	% Change
Sales	27,227,909	21,390,265	27.29%
Cost of sales	(23,977,040)	(19,630,105)	22.14%
Gross Profit	3,250,869	1,760,160	84.69%
Distribution cost	(660,419)	(540,955)	22.08%
Administrative expenses	(390,855)	(363,253)	7.60%
Reversal of/ (allowances for) expected credit loss	26,789	(99,318)	-
Other expenses	(88,891)	(139,265)	-36.17%
Other income	21,367	5,904	261.91%
Operating profit	2,158,860	623,273	246.37%
Finance costs	(1,231,389)	(1,796,829)	-31.47%
Profit / (loss)before taxation	927,471	(1,173,556)	-
Taxation	(1,738)	485,512	-
Net profit / (loss) for the period	925,733	(688,044)	-
Basic and diluted earnings/ (loss) per share	3.12	(2.32)	-

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