Amreli Steels Ltd. · PSX:ASTL
Amreli Steels — FY2022 Earnings Presentation
26 slides from Amreli Steels's earnings presentation, June 2022
Slide 1: Corporate Briefing for the Year Ended 30 June 2022
CORPORATE BRIEFING FOR THE YEAR ENDED 30 JUNE 2022
Slide 2: Highlights for the 4th Quarter & Year Ended 30 June 2022
HIGHLIGHTS FOR THE 4TH QUARTER & YEAR ENDED 30 JUNE 2022 F N O POLITICAL UNSTABILITY I 3% FURTHER TAX ON UNREGISTERED PERSON, LATER WITHDRAWN U N R UKRAINE CRISIS AND DISRUPTION OF GLOBAL SUPPLY CHAIN E REDUCTION IN MINIMUM TAX FROM 1.25% TO 0.25% FOR RETAILERS T H WIDENING CURRENT ACCOUNT DEFICIT A
Slide 3: FY 22 vs 21
FY – 22 Vs 21 SALES Up by GROSS Margin OPR. Margin down down REVENUE PROFIT by PROFIT by 48% 0.4% 0.2% Rs. 58.1 Bn Rs. 6.4 Bn Rs. 4.3 Bn Margin down PRIME BAR Down NET PROFIT by EPS by 1.2% Rs. 0.14 SOLD 1,362 Rs. 1.3 Bn Rs. 4.46 361,587 MT MT
Slide 4: Margins & EPS FY22 vs FY21
MARGINS & EPS GROSS OPR. NET EPS PROFIT PROFIT PROFIT FY 22 11.16% 2.28% 4.46 7.54% FY 21 11.58% 7.73% 3.49% 4.61
Slide 5: Margins & EPS 4Q FY22 vs 3Q FY22
MARGINS & EPS GROSS OPR. NET PROFIT EPS / PROFIT PROFIT / (LOSS) (LPS) 4Q FY 22 8.90% ‐3.25% (1.71) 4.93% 3Q FY 22 10.73% 7.64% 3.33% 1.79
Slide 6: Profit or Loss Statement
PROFIT OR LOSS STATEMENT Year ended Year ended 30 Qtr. Ended 30 Qtr. Ended 31 % % % % 30 June. 2022 June. 2021 June. 2022 Mar. 2022 Rs. ‘000 Rs. ‘000 Rs. ‘000 Sales 58,184,281 100 39,218,453 100 15,647,058 100 15,915,681 100 Cost of sales (51,692,794) 88.84 (34,676,316) 88.42 (14,254,706) 91.10 (14,
Slide 7: Taxation & Profitability
TAXATION & PROFITABILITY 1,000,000 800,000 600,000 Rupees in thousands 400,000 200,000 ‐ (200,000) (400,000) (600,000) Q1 Q2 Q3 Q4 Profit / (loss) before tax Tax expense Net Profit / (Loss)
Slide 8: Key elements effecting 4th Quarter
Key elements effecting 4th Quarter: Impact on PBT FCA for the month of; ‐ May @ 9.5 / kwhs 203,555,104 ‐ June @ 11.37 / kwhs 285,150,656 488,705,760 Tax impact Super tax @ 10% 126,088,029 A Deferred tax due to increase in rate from 29%to33% 383,829,705 B Tax impact 509,917,734 Had there been no Supe
Slide 9: Quantity and Price Variance – FY22 vs FY21
QUANTITY AND PRICE VARIANCE – FY22 Vs. FY21 FY 22 FY 21 VARIANCE AMOUNT ‘000 SALES QUANTITY 370,075 376,685 (6,610) 104.11 (688,182) PRICE (IN THOUSANDS) 157.22 104.11 53.11 370,075 19,654,010 NET SALES VARIANCE 18,965,828 COST OF SALES QUANTITY 370,075 376,685 (6,610) (92.06) 608,480 PRICE (IN THOU
Slide 10: Quantity and Price Variance – 4Q vs 3Q FY22
QUANTITY AND PRICE VARIANCE – 4Q Vs. 3Q FY22 4Q‐FY 22 3Q‐FY 22 VARIANCE AMOUNT ‘000 SALES QUANTITY (10,152) 161.59 (1,640,451) 88,340 98,492 PRICE (IN THOUSANDS) 177.12 161.59 15.53 88,340 1,371,828 NET SALES VARIANCE (268,623) COST OF SALES QUANTITY 88,340 98,492 (10,152) (144.26) 1,464,442 PRICE (
Slide 11: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION ASSETS 30 JUNE. 2022 % 30 JUNE 2021 % Non‐current assets ‐‐‐‐‐‐‐‐‐‐‐‐Rs. ‘000’‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐Rs. ‘000’‐‐‐‐‐‐‐‐‐‐‐ Property, Plant & Equipment 21,578,252 49.55 20,146,267 55.40 Right of use assets 76,410 0.18 100,334 0.28 Intangible assets 11,872 0.03 18,624 0
Slide 12: Equities and Liabilities
EQUITIES AND LIABILITIES 30 JUNE. 2022 % 30 JUNE 2021 % ‐‐‐‐‐‐‐‐‐‐‐‐Rs. ‘000’‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐Rs. ‘000’‐‐‐‐‐‐‐‐ Share capital & reserves 15,254,706 35.03 13,940,630 38.33 Non‐current liabilities Long‐term finances 4,820,914 11.07 4,820,910 13.26 Long‐term provision 154,463 0.35 166,963 0.46 Rel
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT 30 JUNE. 2022 30 JUNE. 2021 Cash generated before working capital changes 4,799,195 3,591,957 Cash (used) / generated from operations 555,306 4,879,330 Income taxed paid (631,537) (437,141) Gratuity paid (27,871) (36,236) Finance cost paid (2,043,559) (1,948,293) Long term deposi
Slide 14: Ratio Analysis
RATIO ANALYSIS UoM FY 22 FY 21 PROFITABILITY RATIOS Gross profit ratio Percentage 11.16% 11.58% Net profit to sales ratio Percentage 2.28% 3.49% Return on equity Percentage 8.70% 9.80% INVESTMENT/ MARKET RATIOS Earning per share Times 4.46 4.61 Interest cover Times 1.97 1.90 TURNOVER RATIOS Total as
Slide 15: Scrap Cost – 4th Quarter FY22 and 3rd Quarter FY22
SCRAP COST – 4TH QUARTER FY22 AND 3RD QUARTER FY 22 SCRAP (CNF‐$) 600 Rupees per MT 553 4th Quarter FY 22 3rd Quarter FY 22 USD VS PKR SCRAP PURCHASE COST (LANDED) 121,338 193 Rupees per MT Rupees per MT 178 108,521 4th Quarter FY 22 3rd Quarter FY 22 4th Quarter FY 22 3rd Quarter FY 22
Slide 16: Billet Cost – 4th Quarter FY22 and 3rd Quarter FY22
BILLET COST – 4TH QUARTER FY22 AND 3RD QUARTER FY 22 BILLET COGM 149,458 Rupees per MT 136,127 4th Quarter FY 22 3rd Quarter FY 22 Axis Title BILLETS FOH 25,000 Rupees per MT 20,000 15,000 10,000 5,000 ‐
Slide 17: Rebar Cost – 4th Quarter and 3rd Quarter FY22
REBAR COST – 4TH QUARTER AND 3RD QUARTER FY22 BILLET CONSUMED REBARS COGM 168,788 156,525 Rupees per MT Rupees per MT 148,440 140,281 4th Quarter FY 22 3rd Quarter FY 22 4th Quarter FY 22 3rd Quarter FY 22 REBARS FOH Rupees per MT
Slide 18: Sales Quantity
SALES QUANTITY SALES QUANTITY REASON FOR VARIANCE – YoY 120 The sales revenue witnessed growth by 48% YoY which is mainly attributable to increase in sale price by 51% 100 reduced by drop in volume by 2%. The positive price variance is the sum of all cost push inflation i.e. scrap 80 prices increase
Slide 19: Variance in Cost of Sales
VARIANCE IN COST OF SALES 180,000 Cost Of Sales 160,000 Cost of sale on YoY basis increased by 49%. The increase 140,000 pertains to charge of FCA of average Rs. 2.97/kwh Amount in Rs. 120,000 (monthly average) above based tariff resulting in annual 100,000 charge of FCA Rs. 834 million, significant
Slide 20: Province Wise Sales
PROVINCE WISE SALES FY 22 FY 21 4.12% 5.67% 6.22% 4.72% 28.87% 31.88% 57.73% 60.79% Sindh Punjab KPK Baluchistan
Slide 21: Distribution Expenses, Administrative Expenses
DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES In FY 22, Distribution expenses represents 2.07% of sales In FY 22, Administration expenses represents 1.26% of sales revenue. revenue. In FY 21, Distribution expenses represents 2.41% of sales In FY 21, Administration expenses represents 1.41% of sales
Slide 22: Production and Capacity Utilization
PRODUCTION AND CAPACITY UTILIZATION PRODUCTION QUANTITIES CAPACITY UTILIZATION 400,000 Capacity SRM 350,000 300,000 Production 250,000 Capacity DRM 200,000 Production 150,000 Capacity SMS 100,000 Production 50,000 ‐ ‐ 100,000 200,000 300,000 400,000 500,000 600,000 FY 22 FY 21 FY 22 FY 21 SMS DRM SR
Slide 23: Foreign Exchange Rate
FOREIGN EXCHANGE RATE 250 205 197 200 185 178 177 176 180 169 173 173 161 165 Rupees Per USD 150 100 50 0 Jul‐21 Aug‐21 Sep‐21 Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22 Apr‐22 May‐22 Jun‐22
Slide 24: KIBOR %
KIBOR % 14.00% 12.00% 12.68% 12.08% 11.36% 10.00% 10.28% 10.45% 9.83% 8.00% 8.38% 7.92% 7.45% 7.39% 7.32% 7.54% 6.00% 4.00% 2.00% 0.00% Jul‐21 Aug‐21 Sep‐21 Oct‐21 Nov‐21 Dec‐21 Jan‐22 Feb‐22 Mar‐22 Apr‐22 May‐22 Jun‐22 MP 7.25% MP 8.75% MP 9.75% MP 12.25% MP 13.75%
Slide 25: Future Outlook
FUTURE OUTLOOK • Flood losses • Current Account Pressure & Declining FX reserves • Rupee Forecast • Interest rates • Global contraction and interest rates • Rehabilitation
Slide 26: Thank you
Thank you