Karachi November 1 2021: Amreli Steel Limited continued towards delivering strong performance and achieved an impressive growth by registering a turnover of PKR 11.8 billion during the first quarter of FY22; this is 50 percent higher than the revenue corresponding to the same period last year.
The topline increased due to better price retention and 7 percent volumetric growth. The improvement in revenue translated into a healthy gross profit of PKR 1.7 billion, as compared to Rs.863 million in the similar period last year. The GP margins stood at 14.29 percent as compared to 10.90 percent in the corresponding period last year.
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The operating profit registered an excellent growth of 145.7 percent to PKR 1,245 million during the quarter under review, as compared to PKR 507 million in the similar quarter last year. Finance cost decreased by 15 percent during the period under review mainly due to reduction in policy rate by the State Bank of Pakistan and partially because of reduced levels of borrowings in the quarter under review.
Operating expenses remained under control to 3.78 percent of sales for the quarter under review, as compared to 4.5 percent in the similar quarter last year. Similarly, profit before tax increased from PKR 50 million in the last comparable quarter to PKR 857 million this quarter, registering a phenomenal growth of 1714 percent. The impressive topline, together with healthy gross margins, allowed the Company to outperform its previous best efforts by registering PAT of PKR 702 million, which is 534 percent more than the PAT registered in the similar period last year. Consequently, the Company achieved an EPS of PKR 2.36 per share as against PKR 0.37 per share in the similar quarter last year.
If the constant increase in costs of raw material and other inputs do not give head winds to the steel demand, your Company is well poised to meet its production and sales target for the next quarter and will continue to grow and post a stellar performance for the financial year 2022.
Amreeli Steel is benefiting from lower rate of withholding tax and minimum tax on turnover for steel distributors, dealers, sub-dealers and retailers of 0.25 percent; reducing sales tax rate on import of re-meltable scrap by steel melters to 14 percent; exempting steel sector from payment of further sales tax of 3 percent on their supplies made to un-registered persons and rationalizing minimum sale price of rebars.
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