Finance

Amreli Steels posts Rs 293mln loss in 1Q

Karachi, April 29, 2019: Amreli Steels Limited (ASTL) announced its 3QFY19 financial results on April 29, 2019, wherein the re-bar roller posted a Loss After Tax (LAT) of PKR 293 million (Loss Per Share: PKR 0.99) as compared to a Profit After Tax (PAT) of PKR 473 million (Earning Per Share: of 1.59), SPLY.

Sales revenue in 3QFY19 improved +38.4 percent YoY mainly due to better volumes as compared to 3QFY18. Despite better volumes, margin fell to 4.9 percent.

Gross margin in 1QFY19 fell -16.3 points YoY due to downward pressure on retail prices and PKR devaluation of 22 percent YoY.

Finance cost of the company raised 2.1x, mainly due to an increase in borrowings and 66.5 percent rise in distribution cost as the company focused on expanding to the northern region.

Company’s bottom-line showcased a decline from PAT of PKR 473 million in 3QFY18 to loss of 293 million during the current year, this can be attributed to lower gross profit -16.3 points YoY and ~2.1xYoY rise in finance costs.

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