A man walks past machines at the hot strip mill department of the Pakistan Steel Mills (PSM) on the outskirts of Karachi, Pakistan. PHOTO: REUTERS
KARACHI: Amreli Steels Limited, one of the largest re-bar makers in the country, posted net income of Rs1.07 billion in fiscal year ended June 30, 2017, down 16% compared to Rs1.28 billion in the previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) came down to Rs3.62 compared to an EPS of Rs4.81 in the period under review.
Amreli Steels’ profit falls 9%, amounts to Rs337m
Also, earnings for the quarter were registered at Rs255 million or an EPS of Rs0.86 compared to Rs357 million or an EPS of Rs1.20 in the fourth quarter of fiscal year 2016, down 24.4%.
The company announced a surprise cash payout of Rs2 per share. The KSE-100 Index closed at 41,974, down 667 points or 1.57%. Amreli Steels’ share price closed at Rs92.09, down 3.94%.
Meanwhile, revenues of the company increased by 7% year on year, largely on the back of an increase in tons of re-bars rolled out to consumers as prices remained soft during the fiscal year.
On the margin front, they normalised to 18.58% in fiscal year 2017 against 22.52% in fiscal year 2016, a drop of 3.94 percentage points mainly as scrap prices continued to increase (+~15%) during the year against fiscal year 2016.
Amreli Steels’ profit surges 17%
However, on a sequential basis, margins increased by 3.64 percentage points mainly due to a 3% increase in average retail prices coupled with a slight 0.50% drop in scrap prices.
Further, effective tax rate for the year settled at 25.7% compared to 26.9% in fiscal year 2016 as the company continued to avail tax credits based on its equity-backed expansion which is to push its annual rolling capacity to 750,000 tons.
Published in The Express Tribune, August 29th, 2017.
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