Amreli Steels earns profit of Rs1.36 billion

Web DeskWeb Editor

13th Aug, 2021. 03:05 pm

KARACHI: Amreli Steels Limited has announced a net profit of Rs1.36 billion, translating into the earnings per share (EPS) of Rs4.61 for the year ended June 30, 2021, compared with the net loss of Rs1.24 billion and the loss per share (LPS) of Rs4.18 in the previous year, a bourse filing said on Friday.

The company did not announce any payout along with the financial results. For the fourth quarter of FY21, Amreli Steels announced profit of Rs443 million (EPS: Rs1.49), compared with a loss of Rs439 million in the fourth quarter of FY20.

The sales revenues in the fourth quarter of FY21 witnessed a noteworthy growth of 200 per cent to an all-time high quarterly revenue of Rs12 billion given a significant jump in rebar prices alongside the surge in the off-take (registering a jump north of 40k tonnes).

“During FY21, [the] revenues surged 48 per cent to Rs39.20 billion with the company manufacturing over 350k tonnes (FY20: 276k tonnes) together with improved pricing,” an analyst at Arif Habib Limited said.

Gross margins arrived at 10.80 per cent during the period under review, compared with 4.2 per cent in the fourth quarter of FY20 due to higher prices in this quarter and improved off-take, which offset the impact of higher scrap prices.

The finance cost declined 28.30 per cent to Rs1.64 billion in FY21, compared with Rs2.29 billion in FY20. The finance cost declined due to the prevailing interest regime. Other income also increased to Rs45.70 million during the year under review, compared with Rs8.1 million in the previous year.

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