March 17, 2022 (MLN): Crescent Steel & Allied Products Limited (PSX: CSAP) is expected to start working on the K-IV project which is roughly 209 kilometres with a steel requirement of 158,000 metric tons worth Rs50 billion, the management of the company informed during its latest corporate briefing session.
K-IV is also known as the Greater Karachi Water Supply Scheme which will become operational within two years supplying 650 million gallons of additional water daily to the citizens.
In addition, the company has a few different projects that are around 30,000 metric tons steel requirement has been purpose in last 2–3 years but yet to be executed. Due to energy crises, the pressure has been built for the execution of these projects and currently are in the final stage of ordering/tendering, briefing takeaways covered by Darson Securities noted.
The management further informed that the company has a view for forwarding integration of adding re-rolling mill depending on the economic situation and upcoming business demand and supply dynamic in future within two to three-year time. Before that, they would add one more furnace to increase its melting capacity.
Apprising investors pertaining to the financial performance, the management stated that net profits of the company for the half-year ended on December 31, 2021, stood at Rs932 million (EPS: PKR12.01) as compared to Rs172mn in 1HFY21.
CSAP has a capacity to manufacture pipes with a range of 8’’–120’’ diameter with a thickness between 4mm to 25mm whereas the capacity to produce (based on single shift) up to 66,667 tons annually, it added.
During the period, the company was able to sell these products with API (American Petroleum Institute) monogram along with this they are the leader in Pakistan for large diameter Submerged Arc Welded Helical steel pipes.
