Better retention prices support Agha’s bottom line in 1QFY22

October 28, 2021 (MLN): Agha Steel Industries (PSX: AGHA) announced its financial statement for the first quarter of FY22, as per which the company posted a net profit of Rs558.3 million, up by 9.6% than the profit of Rs509.38mn reported in the same period last year (SPLY).

The earnings per share of the company clocked in at Rs 0.97 per share. The increase in profitability is primarily attributable to the better retention prices amid higher volumes and a decline in admin cost.

During the period, the sales of the company increased by 22% YoY to clock in at Rs6.15 billion.

On the back of the significant increase in topline, the gross margin of the company improved to 23% in 1QFY21from 22% in the SPLY.

On the cost front, AGHA’s admin cost dropped by 17.25% YoY while its distribution cost went up by 48% YoY.

The finance cost of the company surged by 66.63% YoY to stand at Rs450.32mn, compared to Rs270.25mn in 1QFY20.

The increase in finance cost is owing to the increase in debt levels of the company, as per the report by Foundation Securities Stated.

Furthermore, the company paid Rs190.72mn in terms of taxation, higher than 27.5% YoY taxes paid in the SPLY.

Condensed Interim Profit or Loss Account for the Quarter Ended September 30th, 2021 (Rupees)

 

Sep-21

Sep-20

% Change

Sales

6,145,263

5,034,293

22.07%

Cost of sales

-4,717,909

-3,925,851

20.18%

Gross Profit

1,427,354

1,108,442

28.77%

Administrative expenses

-72,730

-87,896

-17.25%

Selling and distribution cost

-112,803

-76,312

47.82%

Other expenses

-58,229

-43,907

32.62%

Other income

15,735

28,810

-45.38%

Finance costs

-450,315

-270,250

66.63%

Profit before taxation

749,012

658,887

13.68%

Taxation

-190,715

-149,512

27.56%

Net profit for the year

558,297

509,375

9.60%

Basic and diluted earnings per share

0.97

1.12

13.39%

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Posted on: 2021-10-28T18:28:50+05:00

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