Amreli Steels Limited (ASTL) announced its 1QFY22 financial result today

Amreli Steels Limited (ASTL) announced its 1QFY22 financial result today where the company posted a profit after tax (PAT) of PKR 702mn (EPS: PKR 2.36), compared to PKR 111mn (EPS: PKR 0.37) in SPLY and PKR 443mn (EPS: PKR 1.49) in 4QFY21.

Result Highlights

·        Topline in 1QFY22 witnessed a noteworthy growth of 50% YoY given a significant jump in rebar prices (estimated at PKR 165k per ton vs. PKR 11k per ton last year) while volumes remained stable (85k tons sold against 84k tons in SPLY, we view).

·        Gross margins arrived at 14.3% in 1QFY22 compared to 10.9% in 1QFY21 due to higher prices in this quarter (inventory gains), which offset the impact of higher scrap prices. On a QoQ basis margin accretion (4QFY21: 10.8%) was attributable to the aforementioned reason as well (price hike of 18% in the quarter).

·        Financial charges in 1QFY22 went down by 15% YoY to PKR 388mn in lieu of lower borrowing.

·        The company booked effective taxation at 18% in 1QFY22 in contrast to a tax credit of PKR 60mn in SPLY. 

 
 

Courtesy – AHL Research

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