Amreli Steels Limited (ASTL) has posted net earnings of Rs 328 million in the second quarter of the ongoing fiscal year, up 28% compared with Rs 256 million in the same period of the previous year mainly on account of better than expected sales, according to the company notice sent to the Pakistan Stock Exchange (PSX).
The increase in net sales was a function of price (up ~6-7%QoQ) and volume. Earnings per share (EPS) during the period increased slightly to Rs 1.11 from an EPS of Rs 0.86 in the previous period.
Amreli Steels reported sales revenue of Rs 3.5 billion, up 6% YoY / 30% QoQ as compared to Rs 3.33 billion. This was due to the company running it’s rolling mill without any major shutdown during the outgoing quarter.
To recall in 1QFY18 the company had to shut down its rolling mills for a period of two weeks.
Gross margins for the outgoing quarter clocked in at 18.5% up 1.3ppts YoY. This was due to ASTL raising its product prices to fully pass on the impact of the recent PKR devaluation in outgoing quarter.
Effective taxation of the company clocked in at 6.5% compared to 22% reported last year due to tax credit for its new billet plant which started its commercial operations in 1QFY18.
Half year Gross Profit of the company rose by 11.96% to Rs. 1.164 billion resulting from a decline of 8% in cost of sales. Distribution Costs during the period declined by 19.94%, with other income dropping by 87.74%.
The sales during the half year ending December, 31st 2017 declined by 4.89%. Company Sales clocked in at Rs 6.237 billion against the tally of same period last year of 6.558 billion.
At the time of filing this report, ASTL at the PSX was trading at Rs 93.99, up by +2.69% with a turnover of 114,000 shares.
Amreli Steels Limited manufactures and sells steel reinforcement bars in Pakistan. It offers steel billets and deformed bars