Slide 1: Corporate Briefing Session for the Year Ended 30 June 2020
Amreli Steels Limited Corporate Briefing Session For the Year Ended 30 June 2020 24 November 2020
Slide 2: Key Highlights of FY-20
Key Highlights of FY-20 Change of Sales Tax Regime from “Special Sales Tax Procedure” to “Normal Sales Tax Procedure” resulting in increase in sales price due to charging of 17% GST. As a result cost of rebar for the end consumer increased to Rs. 110,948 per ton from Rs. 97,410 per ton when compared
Slide 3: Retrospective FCA charge, ISPA withdrawal, COVID-19, rupee and KIBOR
Retrospective charge by K.E of Fuel Charges Adjustment (FCA) claimed on prior years starting from July 2016 till June 2019 amounting to Rs. 192 million Withdrawal of Industrial Support Package Adjustment with effect from July 19, charged as an arrear (July-19 to Dec-19) in March 2020 amounting to Rs
Slide 4: Highlights FY20 by Quarter
Highlights FY20 Q1 Q4 Q2 Q3 Gross Profit 7.4% Gross Profit 10.9% Opr. Profit 1.9% Opr. Profit 6.0% Net Loss 1.33% Gross Profit 7.8% Gross Profit 4.1% Net Loss 4.2% LPS 0.27 Opr. Profit 3.3% Opr. Loss 2.0% LPS 3.79 Net Loss 3.0% Gross Profit 6.4% Net Loss 8.5% LPS 0.78 Opr. Loss 0.02% LPS 1.48 Net Lo
Slide 5: Profit or loss statement
Profit or loss statement Year Ended 30 Year Ended 30 Qtr. Ended 30 Qtr. Ended 31 June. 2020 % June. 2019 % June. 2020 % March 2020 % Rs.000 Rs.000 Rs.000 Rs.000 Sales 26,532,144 100.00% 28,595,976 100.00% 5,141,879 100.00% 7,747,928 100.00% Cost Of Sales (24,556,406) 92.55% 26,172,392) 91.52% (4,926
Slide 6: Quantity and Price Variance – Year ended June-20 vs June-19
QUANTITY AND PRICE VARIANCE – Year ended June-20 VS Year ended June-19 Up to June -20 Up to June -19 Variance Amount (Rs.000) SALES Quantity 282,983 293,551 (10,569) Rs. 97.41/ton (1,029,544) Price (in thousands) 93.76 97.41 (3.65) 282,983 Tons (1,034,288) Net sales variance (2,063,832) COST OF SALE
Slide 7: Reconciliation of Profit After Tax
RECONCILIATION OF PROFIT AFTER TAX Impact Quantity and Price Variance Rupees ‘000’ Remarks Decrease Gross Profit (447,846) As explained in above slide Mainly decreased due to advertisement sales and promotion which is reduced by 131 Decrease Distribution Cost 34,407 million . Increase Administrative
Slide 8: Quantity and Price Variance – 4th quarter FY20 vs 3rd quarter FY20
QUANTITY AND PRICE VARIANCE – 4th quarter FY20 VS 3rd quarter FY 20 June-20 Mar-20 Variance Amount (Rs’000’) SALES Quantity 54,301 82,863 (28,561) Rs. 93.50/ton (2,670,560) Price (in thousands) 94.69 93.50 1.19 54,301 Tons 64,512 Net sales variance (2,606,048) COST OF SALES Quantity 54,301 82,863 (2
Slide 9: Reconciliation of Profit After Tax
RECONCILIATION OF PROFIT AFTER TAX Impact Quantity and Price Variance Rupees ‘000’ Remarks Decrease Gross Profit (280,692) As explained in above table Mainly decreased due to advertisement expenses and freight expenses due to Decrease Distribution Cost 72,350 lockdown Increase Administrative Cost in
Slide 10: Sale quantity (M.Tons)
Sale quantity (M.Tons) SALE QUANTITY (TONS) 120 COVID-19 100 IN THOUSANDS 80 AXIS TITLE 60 RUPEES 40 20 - September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q 2018-2019 60,019 64,885 66,432 100,519 2019-2020 63,299 81,626 82,548 54,081
Slide 11: Sale price per ton
Sale price per ton 2018-2019 2019-2020 99 98 97 Rupees in Thousands 96 95 94 93 Impact of 92 change in ST regime 91 90 89 88 September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q
Slide 12: Reasons for Variance in Revenue
Reasons for Variance in Revenue 1st Quarter: Volumes remained higher as compared to previous period however there was pressure on price sustainability due to change in regime from Sale tax special procedure to Normal tax regime resulting in increase in prices by 17% for end consumer. This has result
Slide 13: Cost of sales
Cost of sales 2018-2019 2019-2020 94 92 90 Rupees in Thousands 88 COVID-19. 86 Unabsorbed fixed cost & 84 some This is net Provision variable cost 82 of input of ISPA & sale tax FCA cost 80 78 September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q
Slide 14: Scrap Cost
Scrap Cost 58,000 Scrap Purchase cost per ton 57,000 Impact of rupee 56,000 devaluation. 3% CD on 55,000 HMS 54,000 Reduction in Impact to 53,000 CNF and rupee discountinuation devaluation 52,000 of HMS to save 3% CD 51,000 September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q 2019-2020 2018
Slide 15: Scrap prices & Rupee Dollar parity
Scrap prices & Rupee Dollar parity PKR Vs USD SCRAP CNF USD 2019-2020 2018-2019 2019-2020 2018-2019 170.00 390 160.00 370 150.00 350 140.00 330 130.00 310 120.00 290 110.00 270 100.00 250 September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q September 30 - 1Q December 31 - 2Q March 31 - 3Q J
Slide 16: KIBOR %
Slide 17: Production Quantities
Production Quantities Bars Billets 350,000 350,000 294,882 297,283 300,000 290,892 300,000 273,103 250,000 250,000 QUANTITIES IN METRIC TONS QUANTITIES IN METRIC TONS 200,000 200,000 150,000 150,000 100,000 100,000 77,249 81,229 50,650 50,633 50,000 50,000 - - FY 20 FY 19 4th Qtr FY 20 3rd Qtr FY 20
Slide 18: Adoption of accounting treatment under IAS/IFRS
Adoption of accounting treatment under IAS/IFRS Adoption of IFRS-16 “ Leases” – applied on rented properties previously recorded under prepayments Application of IAS-20 “ Government Grant” – applied on subsidized loan for salary under SBP scheme
Slide 19: Had there been no Covid-19 & One-offs
Had there been no Covid-19 & One-offs
Slide 20: Statement of Value Addition
STATEMENT OF VALUE ADDITION 2020 2019 Variance Wealth Generated ‘Rs. 000’ % ‘Rs. 000’ % ‘Rs. 000’ % Revenue from sales 26,532,144 28,595,976 -2,063,832 -7% Revenue from other income 8,167 7,096 1,071 15% Less: bought in material and services (18,016,173) (22,118,921) 4,102,748 19% Value added by com
Slide 21: Thank You
Thank You