Karachi November 1 2021: The Statement of Financial Position footing stood at PKR 47,161.977 million as of September 30, 2021, compared to PKR 41,799.806 million as of June 30, 2021, as per information disclosed by the company.
Breakup value per share increased to PKR 62.34 as of September 30, 2021 from PKR 56.55 as at June 30, 2021. Current ratio as at September 30, 2021 stood at 1.38:1 as compared to 1.37:1 in June 30, 2021.
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Sales revenue increased from PKR 7,734.115 million to PKR 14,022.765 million as compared to corresponding period, with an increase of 81.31 percent. Increase in sales was due to increase in sale prices as well as volumes both in ferrous and non-ferrous segments. Overall gross margins increased significantly from PKR 862.389 million to PKR 2,748.778 million in the current period. Gross margins improved for both ferrous and non-ferrous segments. Within the ferrous segment the impact of increase in raw material prices in the international markets and impact of PKR devaluation had resulted in increase in sale prices of local ferrous products, however, due to inventory in hand the weighted average cost of inventory witnessed gradual increase resulting in improvement in gross margins. Within non-ferrous segment PKR devaluation resulted in increase in sale prices and resulted in increase in gross margins. Commission on sales increased as compared to corresponding quarter mainly due to commission paid to various parties in respect of export sales which was in line with increase in exports.
Sales and marketing expenses increased from PKR 28.673 million to PKR 55.385 million as compared to corresponding period, resulting in increase of 93.16 percent. The increase was mainly due to increase in salaries, advertisement and freight cost. Administrative expenses increased by 38.11 % mainly due to increase in salaries. Other charges increased from PKR 30.327 million to PKR 148.958 million as compared to corresponding period, resulting in increase of 391.18 percent. The increase was mainly due to increase in workers' profit participation fund and workers’ welfare fund which was in line with increase in profits. Other income increased from PKR 31.088 million to PKR 69.322 million as compared to corresponding period, resulting in increase of 122.99 percent. The increase was mainly due to recognition of foreign exchange gain.
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Taxation increased from PKR 53.382 million to PKR 318.275 million resulting in increase of 496.22%. The increase was mainly due to recognition of deferred taxation.
Resultantly, profit for the period increased to PKR 1,688.201 million as compared to PKR 352.434 million in corresponding period resulting in increase of 379.01%. Earnings per share (EPS) for the current period stood at PKR 5.78 as compared to EPS of PKR 1.34 (Restated) in the corresponding period.
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Additions in property, plant and equipment mainly represented addition on account of BMR of girder re-rolling mill. Capital work in progress mainly represented work on solar project and furnaces project. Further, ferro plant was leased out during the period. Inventories comprised of store, spare & loose tools, raw material and finished goods. Inventories increased by 31.78% from 14,867.878 million as at June 30, 2021 to PKR 19,592.424 million as at September 30, 2021. The increase was mainly due to increase in average inventory prices. Deposits, prepayments and other receivables decreased by 76.79 percent. The decrease was mainly due to release of bank guarantees which were issued in favor of customers for supply of steel bars. Short-term borrowings increased by 21.20 percent and were in line with increase in working capital requirements. Further, during the period, the Company issued Islamic commercial paper to the tune of PKR 1,859.260 million for meeting working capital requirements and utilized accordingly.