Increase in scrap prices & other input costs hurting steel industry

Amreli Steels Limited (ASTL) held its analyst briefing earlier today, wherein the following was discussed:

· To recall, the company posted PAT of PkR1.3bn (EPS: PkR4.46) for FY22, lower by 3%YoY compared to the same period last year. ASTL’s Net sales for the year were PkR58.1bn, higher by 48%YoY.… Continue

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The Line 4 of Maple Leaf Cement begins production in Punjab

Maple Leaf Cement Factory Limited (MLCF) has informed Pakistan Stock Exchange (PSX) that an additional dry process clinker production line of 7,000tpd grey clinker, a brownfield expansion at the Company’s existing site in Iskanderabad, Punjab, has successfully started production on November 03, 2022, according a bourse filing of Company Secretary Muhammad Ashraf of the same date.… Continue

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Pioneer Cement net sales have increased by 34% YoY 1QFY23

Pioneer Cement Ltd (PIOC) has posted NPAT of PKR0.6mn (EPS: PKR2.58) for 1QFY23 up 22% YoY, higher than our estimated NPAT of PKR0.5bn (EPS: PKR2.12). A higher-than-expected top line led to the deviation.

Key observations

Net sales have increased by 34% YoY but are down 11% QoQ to PKR8.3bn in 1QFY22, higher than our expected revenue of PKR7.9bn.… Continue

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Agha Steel Industries’ profitability impact due to costly domestic scrap

Agha Steel Industries Limited (AGHA) announced the financial result for 1QFY23 today, whereby earnings arrived at PKR 153mn (EPS: PKR 0.25) against PKR 558mn (EPS: PKR 0.92) last year, down by 73% YoY. Whereas the bottom line posted a 33% jump in QoQ primarily since, in the previous quarter, State Bank restrictions to open LCs forced the company to rely on domestic scrap, which was more expensive compared to imported DRI.… Continue

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Lucky Cement announces consolidated earnings of PKR 6.93 billion 1QFY23

On a consolidated basis, Lucky Cement Limited has reported a profit after tax of PKR 6.9 billion, for Q1 FY23, of which PKR 1.5 billion is attributed to non-controlling interests. The resultant earnings per share (EPS) for the quarter comes out to PKR 16.85.… Continue

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Lucky Cement’s brownfield cement expansion of 3.15mn tons at Pezu remains on track to achieve COD by Dec’22.

Lucky Cement Limited (LUCK) announced the financial result for 1QFY23 today whereby unconsolidated earnings arrived at PKR 3,852mn (EPS: PKR 11.91) against PKR 3,284mn (EPS: PKR 10.15) last year and PKR 3,990mn (EPS: PKR 12.34) in 4QFY22.

Result Highlights           

·        During 1QFY23, sales arrived at PKR 19.7bn (+17% YoY), as a result of over 65% jump in local retention prices which countered the impact of a 30% YoY decline in offtake to 1,577k tons given monsoon rains and flooding across the country.… Continue

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Kohat Cement Limited: 1QFY23 EPS @ PKR 8.89

Kohat Cement Company Limited (KOHC) announced the financial result for 1QFY23 today whereby earnings arrived at PKR 1,785mn (EPS: PKR 8.89) against PKR 1,398mn (EPS: PKR 6.96) last year and PKR 394mn (EPS: PKR 1.96) in 4QFY22. Primary reason behind the massive 5x jump in QoQ earnings is recognition of super tax to the tune of 10% on full year PBT in the last quarter, which axed earnings, compared to 4% in this quarter.… Continue

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D.G.Khan Cement Company earning down by 57% YoY in 1QFY23

D.G. Khan Cement Company Limited (DGKC) announced the financial result for 1QFY23 whereby earnings arrived at PKR 389mn (EPS: PKR 0.89) against PKR 908mn (EPS: PKR 2.07) last year, down by 57% YoY. Whereas the company posted a loss in the last quarter primarily due to hit from super tax.… Continue

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Attock Cement bottom-line declined by 57% YoY during the 1QFY23

Attock Cement Pakistan Limited (ACPL) announced the financial result for 1QFY23 today whereby earnings arrived at PKR 116mn (EPS: PKR 0.84) against PKR 271mn (EPS: PKR 1.97) last year and a loss of PKR 59mn (LPS: PKR 0.43) in 4QFY22. Primary reason behind the QoQ improvement is the 10% super tax and deferred tax liability impact booked in 4QFY22 on earnings of full year.… Continue

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DG Khan Cement finance cost has increased in 1QFY23

DG Khan Cement (DGKC) has posted an unconsolidated profit of PKR389mn (EPS: PKR0.89) in 1QFY23, down 57% YoY. This came in lower than our expected EPS of PKR1.44, where the major deviation stemmed from lower-than-expected GMs.

Key observations

Net sales have increased by 22% YoY and down 8% QoQ to PKR13.6bn.… Continue

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Amreli Steels financial results for 1QFY23 impacted due to super tax.

Amreli Steels Limited (FCCL) announced the financial result for 1QFY23 today whereby earnings arrived at PKR 204mn (EPS: PKR 0.69) against PKR 702mn (EPS: PKR 2.36) last year, down by 71% YoY. Whereas the company posted a loss in the last quarter primarily due to hit from super tax.… Continue

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FCCL, has registered decent margins and profitability post amalgamation of Askari Cement.

Fauji Cement Company Ltd (FCCL) has posted NPAT of PKR2.3bn for 1QFY23 (EPS: PKR0.94), up 70% YoY but down 24% QoQ. The result came in much higher than our estimated NPAT of PKR1.7bn (EPS: PKR0.68), majorly due to higher than expected GMs of 28.7%

Key observations

  • Net sales have increased 112% YoY (down 53% QoQ) to PKR14.7bn in 1QFY23.
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Pakistan Steel 1QFY23 result previews: Lower demand and inventory losses to dent profitability

IMS Steel Universe is expected to post cumulative NPAT of c.PKR1.6bn in 1QFY23, down 55% QoQ (-82% YoY), amid lower margins, inventory & exchange losses, and elevated finance cost.

We expect gross margins of the IMS Steel Universe to remain flat QoQ, but down 3.8ppt YoY due to (i) lower offtake due to floods and elevated construction costs, (ii) elevated power and fuel cost, and (iii) inventory losses from flat steel due to decline in HRC-CRC spreads in case of ISL.… Continue

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Bestway Cement lights up its Kiln in Punjab today

Bestway Cement Limited, Pakistan’s 2 nd largest cement manufacturer with an annual production capacity of 10.8 million tonnes achieved another milestone today. Early morning on 20 th October the Company lit up its Kiln with 7,200 tonnes per day clinker capacity at its greenfield Mianwali Plant.… Continue

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Two new cement lines formally start operations in Pakistan

Pakistan Cement Industry has received good news today. Company Secretary of Bestway Cement Limited Hassan Niazi has informed Pakistan Stock Exchange (PSX) that the Company has achieved a major milestone of lighting up the kiln at its 7,200tpd Greenfield plant near Paikhel, District Mianwali in Punjab Province of Pakistan today.… Continue

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Cement dispatches declined by 6.83 per cent during September 2022: APCMA

According to the data released by the All Pakistan Cement Manufacturers Association, cement dispatches declined by 6.83 percent in September 2022. Total Cement dispatches during September 2022 were 4.276 million tons against 4.589 Million Tons dispatched during the same month of last fiscal year.… Continue

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International Steel sees lackluster outlook for FY23

ISL held its Analyst Briefing Session yesterday to discuss the recent financial performance, also painting a lackluster outlook for FY23 amid monsoon flooding. To recall, ISL posted a dull EPS of PKR0.13 in 4QFY22 (FY22 EPS of PKR12.44), despite healthy gross margin, which were overshadowed by the sharp decline in volumetric sales and inflated operating cost.… Continue

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Lucky Cement awarded for best corporate report

Lucky Cement Limited has won the Best Corporate Report Award in the Cement Sector Category at the “Best Corporate & Sustainability Report Awards 2021.” The recognition was jointly announced by the Institute of Charted Accountants of Pakistan (ICAP) and Institute of Cost and Management Accountants of Pakistan (ICMAP).… Continue

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Pakistan cement sales in Sep-2022 likely to rebound

Pakistan cement sales are expected to increase by 22-26% MoM to 4.0-4.2mn tons with local dispatches likely to be jump 20-24% MoM mainly due to (1) higher working days in Aug-2022 compared to Jul-2022 amid Ashura holidays in July and (2) slight pickup in construction activity post monsoon season.… Continue

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Fauji Cement announced bonus shares at 12.5%.

FCCL announced financial results for FY22, wherein the company posted a Profit after tax of Rs7,113 (EPS: 3.26/share) versus PAT of Rs3,471 (EPS: 2.52/share unadjusted) in FY21. During 4QFY22, the company recorded PAT of Rs.3,049mn versus PAT of Rs.861mn last year.… Continue

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Mughal Iron & Steel Industries posted a profit of PKR1.0bn for 4QFY22,

MUGHAL posted a profit of PKR1.0bn (EPS: PKR3.10) for 4QFY22, up from PKR0.8bn (EPS: PKR2.50) last quarter. This has translated FY22 NPAT to PKR5.4bn (EPS: PKR16.12), c.13% up from SPLY. The announcement is against our earnings expectation of PKR2.25/sh, where the major deviation stemmed from lower than expected tax rate (15.3%) and finance cost.… Continue

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D.G. Khan Cement Company to announce its FY22 financial result tomorrow

DG Khan Cement Company Limited (DGKC) is scheduled to announce its FY22 financial result on 13th Sep’22 whereby we expect the company to post earnings of PKR 4,202mn (EPS: PKR 9.59) against PKR 3,721mn (EPS: PKR 8.49) in SPLY, depicting a jump of 13% YoY.… Continue

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Cement dispatches declined by 24 percent during August 2022 in Pakistan

Total cement dispatches declined by 23.98 percent in August 2022 to 3.296 million tons against 4.336 Million Tons dispatched during the same month of last fiscal year, according to the data released by All Pakistan Cement Manufacturers Association (APCMA). The breakdown shows that local cement dispatches by the industry during August 2022 were 2.90 million tons compared to 3.81 million tons in August 2021, showing a decline of 23.75 percent.… Continue

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Agha Steel’s Green steel to make Gulberg Mall, Islamabad’s first Eco-friendly Green Structure Project

Agha Steel Industries Ltd. a renowned Steel manufacturing company in Pakistan has signed an accord with Gulberg Mall and Signature Living to solely supply Green Electric Arc Furnace Technology steel rebars to their mega project, making it Islamabad’s first eco-friendly Green Structure Project.  … Continue

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Amreli Steels Limited posts a loss after tax of PKR 509mn

Amreli Steels Limited (ASTL) announced the financial result for 4QFY22 today, posting a loss after tax (LAT) of PKR 509mn (LPS: PKR 1.71) compared to a PAT of PKR 443mn (EPS: PKR 1.49) in SPLY. Primary culprit behind this loss has been the fuel charge adjustment (FCA) in the energy tariff as well as recognition of super tax and deferred tax liability.… Continue

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