The financial results for Amreli Steels Limited for the year ending 30 June 2024 reveal significant changes compared to the previous year (2023). Here’s a brief review based on the key points observed:
- Revenue and Cost of Sales:
- The company’s net sales dropped from PKR 45.49 billion in 2023 to PKR 38.77 billion in 2024.
- Despite a reduction in net sales, the cost of sales remained high at PKR 36.37 billion, leading to a sharp decline in gross profit to PKR 2.40 billion, down from PKR 5.95 billion in the previous year.
- Operating Costs and Expenses:
- Distribution costs increased slightly to PKR 1.11 billion from PKR 1.01 billion.
- Administrative expenses also grew to PKR 842.39 million, up from PKR 751.11 million.
- The allowance for expected credit losses rose substantially from PKR 119.60 million to PKR 379.20 million.
- Other expenses also increased from PKR 84.10 million to PKR 199.21 million.
- The company’s other income declined marginally to PKR 3.16 million from PKR 8.31 million.
- Operating and Financial Performance:
- Amreli Steels reported an operating loss of PKR 130.79 million in 2024, compared to an operating profit of PKR 3.99 billion in 2023, indicating a significant drop in profitability.
- Finance costs also escalated, reaching PKR 4.77 billion, up from PKR 4.04 billion in 2023, further contributing to the overall loss.
- Net Loss:
- The company recorded a net loss before taxation of PKR 5.39 billion compared to a slight loss of PKR 301.19 million in the previous year.
- After taxation, the net loss for 2024 amounted to PKR 6.11 billion, a stark contrast to the much lower loss of PKR 697.20 million in 2023.
- Loss Per Share:
- The loss per share increased dramatically to PKR 20.56 in 2024 from PKR 2.35 in 2023, reflecting the company’s overall weak financial performance for the year.
In conclusion, Amreli Steels Limited faced a challenging financial year, with significant reductions in profitability and a substantial increase in its losses. Both operational inefficiencies and increased financial costs have contributed to the overall poor performance. The board has recommended no dividends, bonus shares, or rights issues, indicating a conservative financial strategy in the wake of these results.