Amreli Steels Ltd. (ASTL) held its corporate briefing today to discuss its FY25 financial results and future outlook. The following are the key highlights as stated by AKD Research:
- In FY25, ASTL recorded sales of PkR16.1bn, down 59% YoY from PkR38.8bn during SPLY, primarily due to a 59% YoY drop in rebar sales during the period. The company’s utilization during the period dropped to 11% from 28% during SPLY.
- Notably, the company sold 72k tons of rebar during FY25, compared to 157k tons during SPLY, due to ongoing financial restructuring, which led to the unavailability of working capital lines. Moreover, the company has temporarily shut down its Site Rolling Mill due to lower utilization during the year.
- Management briefed that the company charged a premium of PkR25–30k/ton on rebars during the period. However, due to raw material shortages stemming from a working capital crunch, they concentrated solely on retail sales and temporarily stepped back from government and institutional segments.
- The company reported a loss of PkR3.8bn in FY25 (LPS: PkR12.8), down 16% YoY, compared to PkR6.1bn (LPS: PkR20.6) in FY24, due to a tax reversal during the period.
- The company has recently entered into a Master Restructuring Agreement with its lenders, under which principal and mark-up payments are deferred for 2-3 years during the Moratorium Period. An existing short-term facility of around PkR11bn will be converted into a long-term facility, and payments will be made over 10 years, including a 3-year grace period.
- Moreover, the company aims to ease working capital pressures through the planned sale of non-core assets valued at approximately PkR4bn, along with an additional PkR1bn equity injection from the sponsor.
https://research.akdsl.com/638998650981248830.pdf
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