Amreli Steels Limited (PSX: ASTL) announced its financial result for the half year of the financial year 2022-23 (1HFY23) posting a loss of Rs. 184 million, compared to a net profit of Rs. 1.303 billion in 1HFY22.
For the quarter that ended on December 31st, 2022, the company posted a loss of Rs. 388 million as compared to a profit of Rs. 601 million in 2QFY22.
Net sales of the company arrived at Rs. 13.2 billion in 2QFY23, down by 11 percent year-on-year (YoY) given the economic slowdown which offset the impact of a hike in retention prices, projected at Rs. 196,000 per ton against Rs. 155,000 per ton in the same period last year.
Similarly, the sales in 1HFY23 declined by 13.5 percent YoY to Rs. 23 billion.
The company posted a gross profit of Rs. 2.44 billion in 1HFY23. During Q2, gross profit decreased to Rs. 0.85 billion with the gross margins crashing down to 6.5 percent compared to 11.5 percent in 2QFY22 despite low scrap prices.
The other income dropped by 67.6 percent YoY in 1HFY23 to Rs. 6.89 million compared to Rs. 21.32 million in 1HFY22. Meanwhile, in 2QFY23, the other income witnessed a decline of 9 percent YoY arriving at Rs. 5 million.
Administrative expenses showed a small decrease from Rs. 354 million to Rs. 334 million during the half year, while other distribution costs clocked in at Rs. 499 million, down by 0.76 percent from Rs. 502 million in 1HFY22.
The finance costs drastically increased by 129 percent YoY to Rs. 1.96 billion in 1HFY23 due to higher interest rates.
The steel maker paid Rs. 232 million in taxes during 1HFY23, 5.3 percent less than the Rs. 245 million paid the previous year.
ASTL posted a loss per share (LPS) of Rs. 0.62 for 1HFY23 compared to earnings per share (EPS) of Rs. 4.39 in 1HFY22.
The company’s scrip at the bourse closed at Rs. 17.4, down 4 percent or Rs. 0.74 with a turnover of 102,450 shares on Friday.