ASTL’s financial performance displays a significant YoY plunge in earnings

April 29, 2019 (MLN): Amreli Steels Limited (ASTL) announced its financial performance for the nine months ended on March  31st 2019 with a significant year-on-year plunge in earnings. As the company was unable to pass on the impact of PKR depreciation and higher energy price,  its bottom-line earnings dropped by 77.5% to locked in at Rs223.5 million with EPS recorded at Rs0.75.

The company’s net revenues were up by 72%, but more than proportionate increase in the cost of sales made the gross profits decline by 14%.

Additionally, finance costs also increased by a significant amount of Rs 536 million due to expansion projects of the company. Moreover, distribution cost and administrative expenses increased by 92% and 24.5% respectively,  which made profit before tax decline by 87%.

On the other hand,  the company enjoyed a tax rebate of Rs 70 million in contrast to  tax payments of Rs 203.8 million in the same period last year, which provided a cushion to the earnings.

Condensed Interim  Profit or Loss Account for the Nine months ended March  31th 2019 (Rupees)

 

Mar-19

Mar-18

% Change

Sales

                          18,723,108,676

                          10,865,882,245

72.31%

Cost of sales

                       (16,882,764,083)

                          (8,719,896,211)

93.61%

Gross Profit

                            1,840,344,593

                            2,145,986,034

-14.24%

Distribution cost

                             (438,690,133)

                             (228,186,183)

92.25%

Administrative expenses

                             (371,454,907)

                             (298,288,629)

24.53%

Other expenses

                                (21,792,017)

                                (96,286,791)

-77.37%

Other income

                                    5,191,369

                                    1,842,552

181.75%

Operating profit

                            1,013,598,905

                            1,525,066,983

-33.54%

Finance costs

                             (860,091,226)

                             (324,034,902)

165.43%

Profit before taxation

                                153,507,679

                            1,201,032,081

-87.22%

Taxation

                                  70,065,284

                             (203,880,450)

 

Net profit for the year

                                223,572,963

                                997,151,631

-77.58%

Basic and diluted earnings per share

                                               0.75

                                               3.36

-77.68%

Posted on: 2019-04-29T12:42:00+05:00

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