AGHA Steel Industries announced a 5% bonus

Agha Steel Industries Limited (AGHA) released its 4QFY21 financial result today, posting a profit after tax (PAT) of PKR 438mn (EPS: PKR 0.76), compared to PKR 220mn (EPS: PKR 0.38) in SPLY and earnings of PKR 541mn (EPS: PKR 0.94) in 3QFY21. This took the FY21 bottom-line to PKR 2,036mn (EPS: PKR 3.53) vis-à-vis PKR 1,236mn (EPS: PKR 2.14) in SPLY. Alongisde the result, the company announced a 5% bonus.

Result Highlights

· Topline during 4QFY21 depicted a surge of 69% YoY to PKR 4.3bn in lieu of a significant improvement in rebar prices. During FY21, revenue rose by 48% YoY led by higher rebar prices coupled with volumetric growth (193k tons vs. 143k tons last year).

· Gross margins in 4QFY21 expanded to 31% (4QFY20: 24%) given surge in rebar prices which offset the impact of augmented scrap prices. QoQ jump in margins was owed to similar reasons (3QFY21: 21%). This took the margins in FY21 to 23% against 24% in SPLY. Slight decline was led by lower margins in 2Q when the company could not procure virgin scrap (cheaper compared to regular scrap), which eroded margins.

· Finance costs went up by 126% YoY to PKR 500mn in the quarter under review given augmented borrowing.

· AGHA booked effective taxation at 41% in 4QFY21 vis-à-vis 42% in SPLY.

Courtesy – AHL Research

 

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