KARACHI: Amreli Steels Limited announced a net profit of Rs196 million for the quarter ended September 30, 2017, down 13.2% compared with Rs226 million in the same period of last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).
Earnings per share (EPS) dropped to Rs0.66 compared to an EPS of Rs0.76 in the period under review.
Taurus Securities commented that the net profit of the company was below its expectations, attributable to a 15.9% year-on-year drop in sales revenue likely on the back of lower than expected volumes in this quarter.
Amreli Steels’ share price closed at Rs90.74, down 3.1% on a day when KSE-100 Index managed to close at 41,409, down 185 points or 0.45%.
Margins for the quarter clocked in 2.8 percentage points year-on-year higher at 18.8% compared with 16.1% in the same period of last year. Higher margins of 13% year-on-year can be attributed to the rise in average selling prices in the first quarter of fiscal year 2018 compared with the same quarter of fiscal year 2017.
On a sequential basis, sales revenue has observed a 14.1% quarter-on-quarter decline due to lower quarter-on-quarter quantity of re-bars rolled out. Moreover, margins have followed suit as well where they have fallen by 2.6 percentage points quarter-on-quarter on the back of rising scrap prices (up 17% quarter-on-quarter).
Published in The Express Tribune, October 27th, 2017.
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Source: Tribune News | Corporate results: Amreli Steels’ profit decreases 13.2% to Rs196m