KARACHI: Amreli Steel Limited (ASTL) unveiled its 3QFY19 ended March 31, 2019 financial results wherein the company’s loss after tax clocked-in at PKR 293 million translating into loss per share (LPS) of PKR 0.99 compared to a profit after tax of PKR 473 million and (EPS) of PKR 1.59 recorded in the corresponding quarter of last year.[the_ad id=”31605″]“The net loss is mainly due to significant depletion in gross margins (-16ppsYoY) along with hike in finance cost during the quarter,” a report issued by Pearl Securities said.
Revenues registered growth of 38% YoY at PKR 6.406 billion as compared to PKR 4.628 billion in 3QFY18. However, cost of sales also surged 67% YoY during the quarter, thereby resulting in 68% YoY contraction in gross level profitability.
Consequently, gross level margins declined 16pps to mere 5% in 3QFY19 owing to hefty PKR devaluation, thereby increasing input cost.
Moreover, finance cost also increased 216% YoY in 3QFY19 to PKR 370 million which further exacerbated profitability.