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% |
27733