CSAP’s net profit falls to Rs673m, down 49% YoY

January 31, 2025 (MLN): Crescent Steel & Allied Products Limited (PSX: CSAP) reported a decline in profitability for the year ended December 31, 2024, with its net profit after tax falling by 49.21% YoY to Rs672.98 million [EPS: Rs8.67], compared to Rs1.00 billion [EPS: Rs12.93] in the same period last year (SPLY).

The company declared an interim cash dividend of Rs. 2.0 per share (20%).

The company's total comprehensive income also dropped by 49.25% YoY to Rs673.6 million from Rs1.00 billion in SPLY.

The company’s top-line revenue decreased by 37.62% YoY to Rs3.67bn compared to Rs5.04bn in SPLY, mainly due to lower sales volume.

Meanwhile, the cost of sales declined by 23.76% YoY but remained proportionally higher relative to the decrease in revenue, leading to a significant 79.22% YoY drop in gross profit to Rs768.4mn.

 The gross margins deteriorated compared to last year, reflecting increased cost pressures.

Other incomes witnessed a steep decline of 56.20% YoY, amounting to Rs1.37bn compared to Rs2.14bn in SPLY.

On the expense side, distribution and selling expenses dropped by 193.42% YoY, while administrative expenses remained relatively stable, recording a slight 0.51% YoY decrease.

Other operating expenses saw a notable decline of 153.32% YoY.

The company’s finance costs fell by 70.05% YoY, standing at Rs156.29mn compared to Rs265.78mn in SPLY, likely due to lower debt financing.

On the taxation front, the total tax expense decreased by 99.85% YoY to Rs244.59mn from Rs488.83mn in the previous year.

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