September 2, 2019 (MLN): Aisha Steel Mills Limited (ASL)’s annual net profits declined massively by 80% to Rs 253 million from Rs 1.28 billion last year with Earnings per share reported at Rs 0.26.
The huge decline in ASL’s profits was mainly attributable to increase in cost of sales by 19% which allowed company’s gross profits to decline by 49% to Rs 1.67 billion from Rs 3.3 billion last year.
Moreover, over the year company’s selling and distribution cost surged by 31% while its administrative expenses soared by 30% which further helped in declining company’s profitability.
In addition to this, the company enjoyed tax reversal of Rs 666 million, which provided a cushion to the earnings.
|
Profit and Loss Account for the Year Ended June 30,2019 (Rupees '000) |
|||
|---|---|---|---|
|
|
2019 |
2018 |
% Change |
|
Revenue |
20,230,797 |
18,903,907 |
7.0% |
|
Cost of sales |
(18,552,531) |
(15,589,753) |
19.0% |
|
Gross Profit |
1,678,266 |
3,314,154 |
-49.4% |
|
Selling and distribution cost |
(25,070) |
(19,128) |
31.1% |
|
Administrative expenses |
(249,346) |
(192,255) |
29.7% |
|
Other expenses |
(2,684) |
(143,595) |
-98.1% |
|
Other income |
51,711 |
35,345 |
46.3% |
|
Profit from operations |
1,452,877 |
2,994,521 |
-51.5% |
|
Finance cost |
(1,865,306) |
(1,078,941) |
72.9% |
|
Profit/(loss) before taxation |
(412,429) |
1,915,580 |
|
|
Taxation |
666,127 |
(631,598) |
|
|
Profit/(loss) for the period |
253,698 |
1,283,982 |
-80.2% |
|
Earnings/(loss) per share – Basic |
0.26 |
1.57 |
-83.4% |
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