Amreli Steels profit declines 79pc

KARACHI: Amreli Steels Limited profit fell 79 percent to Rs32.823 million for the year ended June 30, 2019 translating into EPS of Rs0.11, a notice to the PSX said.

The company earned Rs1.585 billion with EPS of Rs5.34 in the year ended June 30, 2018, as per the notice to the bourse. It did not announce any final cash dividend for the year ended June 30, 2019.

Topline in Q4FY19 witnessed a massive growth of 113 percent YoY to Rs9.87 billion. This might be due to robust operations at the Dhabeji plant led by suspension of ship breaking at Gadani post a fatal fire incident, along with higher rebar prices.

During FY19, volumetric growth amid aforementioned reasons, tagged with improvement in retail prices aided revenue growth of 84 percent YoY. Gross margins at 5.9 percent in Q4FY19 compared starkly to 13.2 percent in Q4FY18, down by seven ppts YoY.

Arif Habib Limited in its analysis said, “The company booked a tax credit of Rs30 million in Q4FY19 in contrast to a hefty credit of Rs395 million in SPLY on commission of its new plant.”