Crescent Steel and Allied Products Limited held its corporate briefing session to discuss the 1HYFY22 financial performance and the future outlook of the company recently.

The followings are the key takeaways:

• The unconsolidated PBT in 1HYFY22 clocked in at PKR909mn, growing by 110%YoY. The ROE in 1HYFY22 ballooned to 25.2% against 5.9% due to the diversification of investments in different areas.

• The steel segment which is the main driver of CSAP has contributed almost 13,000km to Pakistan’s gas transmission lines over the last three decades. Furthermore, they are also authorized to use API monogram and Industry leader for large diameter submerged Arc welded helical steel pipe.

• The capacity in the coating segment on a single shift operation is 66,000 tons with a notional diameter of 30 inches, and an annual capacity of 600,000 m2 based on a notional size of 14inches in diameter.

• CSAP subsidiary CS Capital (Private) Limited manages investment portfolios of securities and properties with a market value of approx. PKR4.71bn including equity investments of PKR3.04bn.

• The small unit of cotton division has about 20,000 spindles along with a daily production capacity of 385 bags.

• The CSAP billet division has a melt shop with two induction melting furnaces with a continuous casting machine. Furthermore, it gets upset due to a lack of power or grid connection. To mitigate this, the company has added a power connection for the manufacturing and hoping to run this all year and achieve the production target.

• The CSAP energy division provides electricity to the billet division along with other customers. The CSAP has a strategic investment in Altern Energy having a holding share of 17.6%. The management stated that they have an interest in a 100-MW Solar power project which is in the approval phase by NEPRA.

• The CSAP is anticipated to work on a K4 water project that requires 84inch pipe roughly about 160,000 M. tons. The management stated that it requires almost 30 months of timeframe to complete the project.

Courtesy – Spectrum Research