Amreli Steels Ltd. · PSX:ASTL
Amreli Steels — Q1 FY2022 Earnings Presentation
28 slides from Amreli Steels's earnings presentation, Oct 26, 2021
Slide 1: Results for the First Quarter Ended 30 September 2021
RESULTS FOR THE FIRST QUARTER ENDED 30 SEPTEMBER 2021 26 October 2021
Slide 2: Highlights 1Q-FY 22
C.A DEFICIT / DECLINE IN FX RESERVES INCREASE IN KIBOR / EXCHANGE RATES INCREASE IN INTERNATIONAL SCRAP PRICES INCREASE IN GLOBAL ECONOMIC ACTIVITY AND RELATED PRICE INCREASE 3% FURTHER TAX ON UNREGISTERED PERSON WHICH HAS NOW BEEN EXCLUDED. HIGHLIGHTS REDUCTION IN MINIMUM TAX FROM 1.25% TO 0.25% FO
Slide 3: 1st Quarter FY-22
st 1 QUARTER FY-22 SALES GROSS OPR. REVENUE Up by PROFIT Margin Up by PROFIT Margin Rs.11.8 Bn 50% Rs.1.6 Bn 3.39% Rs.1.2 Bn Up by 4.11% PRIME BAR NET PROFIT Margin EPS Up by SOLD Rs.701 Mn Up by 4.53% Rs.2.36 6 Times 85,356 MT Up by 7.0%
Slide 4: Margins & EPS
MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS 1Q FY 22 14.29% 10.51% 5.93% 2.36 1Q FY 21 10.90% 6.40% 1.40% 0.37
Slide 5: Margins & EPS
MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS Q1-FY22 14.29% 10.51% 5.93% 2.36 Q4-FY21 10.77% 7.29% 3.69% 1.49
Slide 6: Income statement, quarter ended 30 Sep 2021
Qtr. ended 30 Qtr. ended 30 Qtr. Ended 30 % % % Sep. 2021 Sep. 2020 June. 2021 Rs.000 Rs.000 Rs.000 Sales 11,843,701 100 7,914,003 100 11,990,544 100 Cost Of Sales (10,151,510) -85.71 (7,051,171) -89.10 (10,699,276) -89.23 Gross Profit 1,692,192 14.29 862,832 10.90 1,291,269 10.77 Distribution Cost
Slide 7: Quantity and Price Variance – 1Q FY22 vs. 1Q FY21
QUANTITY AND PRICE VARIANCE – 1Q FY22 Vs. 1Q FY21 JULY-SEP 22 JULY-SEP 21 VARIANCE AMOUNT ‘000’ SALES QUANTITY 88,102 83,511 4,591 94.77 435,042 PRICE (IN THOUSANDS) 134.43 94.77 39.67 88,102 3,494,656 NET SALES VARIANCE 3,929,698 COST OF SALES QUANTITY 88,102 83,511 4,591 (84.43) (387,611) PRICE (I
Slide 8: Reconciliation of Profit After Tax
RECONCILIATION OF PROFIT AFTER TAX QUANTITY AND PRICE VARIANCE IMPACT Rs. ‘000’ REMARKS GROSS PROFIT INCREASE 829,359 As explained in above slide Increase is due to salaries and wages Rs. 30 million, Bundling Rs.12.0 million, packing DISTRIBUTION COST INCREASE (37,403) material 5 million and repairs
Slide 9: Quantity and Price Variance – 1Q FY22 vs. 4Q FY21
QUANTITY AND PRICE VARIANCE – 1Q FY22 Vs. 4Q FY21 1Q-FY 22 4Q-FY 21 VARIANCE AMOUNT ‘000’ SALES QUANTITY 88,102 104,487 (16,384) 114.76 (1,880,229) PRICE (IN THOUSANDS) 134.43 114.76 19.67 88,102 1,733,386 NET SALES VARIANCE (146,843) COST OF SALES QUANTITY 88,102 104,487 (16,384) (102.40) 1,677,746
Slide 10: Reconciliation of Profit After Tax
RECONCILIATION OF PROFIT AFTER TAX QUANTITY AND PRICE VARIANCE IMPACT Rs. ‘000’ REMARKS GROSS PROFIT INCREASE 400,923 As explained in above slide Mainly decreased due to advertisement sales & promotion 38 million and cartage Rs. DISTRIBUTION COST DECREASE 46,312 26.7 million ADMINISTRATIVE COST INCR
Slide 11: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION ASSETS 30 SEP. 2021 % 30 JUNE 2021 % Non-current assets ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Property, Plant & Equipment 20,571,868 54.81 20,146,267 55.40 Intangibles 16,741 0.04 18,624 0.05 Long-term Investment 15,289 0.04 15,289 0.04 Lon
Slide 12: Equities and Liabilities
EQUITIES AND LIABILITIES 30 SEP. 2021 % 30 JUNE 2021 % ------------Rs. ‘000’--------- ------------Rs. ‘000’-------- Share capital & reserves 14,642,476 39.01 13,940,630 38.33 Non-current liabilities Long-term finances 5,104,237 13.60 4,820,910 13.26 Lease liabilities 79,478 0.21 84,963 0.23 Long-ter
Slide 13: Cash Flow Statement
CASH FLOW STATEMENT 30 SEP 2021 30 SEP 2020 Cash generated from operations 917,410 2,350,171 Gratuity Paid (5,249) (5,406) Long term deposits paid (9,661) (12,478) Income tax paid (171,690) (112,599) Net cash generated from operating activities 730,810 2,219,688 Fixed capital expenditure (591,308) (
Slide 14: Ratio Analysis
RATIO ANALYSIS UoM 1QFY 22 1QFY 21 PROFITABILITY RATIOS Gross Profit ratio Percentage 14.29 10.90 Net profit to sales ratio Percentage 5.93 1.40 Return on Equity - Annualized Percentage 16.8 3.1 INVESTMENT/ MARKET RATIOS Earning per Share Times 2.36 0.37 Interest Cover Times 3.24 1.12 TURNOVER RATIO
Slide 15: Scrap Cost – 1Q FY22 and 1Q FY21
SCRAP COST – 1Q FY 22 AND 1Q FY 21 SCRAP (CNF-$) SCRAP PRICES 600 100,000 90,000 500 80,000 Rupees per MT 70,000 502 400 USD per MT 60,000 300 50,000 40,000 296 200 30,000 100 20,000 10,000 - - FY22 FY21 Price in USD Price in PKR USD VS PKR SCRAP COST 167.17 91,737 56,971 165.17 FY22 FY21 FY22 FY21
Slide 16: Billets Cost – 1Q FY22 and 1Q FY21
BILLETS COST – 1Q FY 22 AND 1Q FY 21 SCRAP CONSUMPTION (RS/MT) 88,038 57,774 FY22 FY21 BILLET COGM (RS/MT) BILLETS FOH (RS/MT) 14,000 12,000 110,797 10,000 RUPEES 8,000 75,804 6,000 4,000 2,000 0 Additives Salaries Utility Store & Depreciation Others Spares AXIS TITLE FY22 FY21 FY22 FY21
Slide 17: Rebars Cost – 1Q FY22 and 1Q FY21
REBARS COST – 1Q FY 22 AND 1Q FY 21 BILLET CONSUMED (RS/MT) 113,310 80,267 FY22 FY21 REBARS COGM (RS/MT) REBARS FOH (RS/MT) 4,500 4,000 3,500 121,677 3,000 2,500 86,956 2,000 1,500 1,000 500 - Stores & Salaries Cartage Utility Depreciation Others Spares FY22 FY21 FY22 FY21
Slide 18: Scrap Cost – 1Q FY22 and 4Q FY21
SCRAP COST – 1Q FY22 AND 4Q FY21 SCRAP (CNF-$) 502 444 1st Quarter FY 22 4th Quarter FY21 USD VS PKR SCRAP (CNF-PKR) 165 86,696 70,310 155 1st Quarter FY 22 4th Quarter FY21 1st Quarter FY 22 4th Quarter FY21
Slide 19: Rebar Cost – 1Q FY22 and 4Q FY21
REBAR COST – 1Q FY22 AND 4Q FY21 BILLET CONSUMED (RS/MT) 113,310 99,024 1st Quarter FY 22 4th Quarter FY21 REBARS COGM (RS/MT) REBARS FOH (RS/MT) 4,500 4,000 121,677 3,500 3,000 2,500 2,000 1,500 106,211 1,000 500 - Stores & Salaries Cartage Utility Depreciation Others Spares 1st Quarter FY 22 4th Q
Slide 20: Segment Wise Sales
SEGMENT WISE SALES 1Q-FY 22 1Q-FY 21 13.15% 10.36% 19.57% 23.29% 67.28% 66.35% Retail Corporate Government & PFC Retail Corporate Government & PFC
Slide 21: Province Wise Sales
PROVINCE WISE SALES 1Q - FY 22 1Q -FY 21 4.25% 5.87% 0.92% 2.32% 7.01% 0.20% 29.43% 59.53% 54.37% 36.10% Sindh Punjab Gilgit-Baltistan KPK Balochistan Sindh Punjab Gilgit-Baltistan KPK Balochistan
Slide 22: Vertical Analysis - Administrative Expenses
VERTICAL ANALYSIS - ADMINISTRATIVE EXPENSES 30 Sep 2021 % 30 Sep 2020 % 30 Jun 2021 % Rs.’000 Rs.’000 Rs.’000 Salaries, allowances and other benefits 133,749 1.13 80,323 1.01 117,676 0.98 Depreciation 6,917 0.06 5,477 0.07 6,161 0.05 Repairs and maintenance 6,069 0.05 2,137 0.03 4,748 0.04 Computer
Slide 23: Vertical Analysis - Distribution Expenses
VERTICAL ANALYSIS - DISTRIBUTION EXPENSES 30 Sep 2021 % 30 Sep 2020 % 30 Jun 2021 % Rs.’000 Rs.’000 Rs.’000 Salaries, allow. & other benefits 66,779 0.56 36,159 0.46 56,255 0.47 Cartage and transport 66,021 0.56 72,897 0.92 92,812 0.77 Advertisement, sales promotion & others 37,007 0.31 47,962 0.61
Slide 24: Distribution Expenses and Administrative Expenses
DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES In 1Q FY 22, Distribution expenses represents 2.02% of sales In 1Q FY 22, Administration expenses represents 1.50% of sales revenue. revenue. In 1Q FY 21, Distribution expenses represents 2.55% of sales In 1Q FY 21, Administration expenses represents 1.4
Slide 25: Production and Capacity Utilization
PRODUCTION AND CAPACITY UTILIZATION PRODUCTION QUANTITIES CAPACITY UTILIZATION Capacity SRM 100,000 Production 80,000 Capacity Quantity in MT DRM 60,000 Production 40,000 Capacity SMS 20,000 Production - FY22 FY21 - 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000 Billets Rebars DRM Rebar
Slide 26: Foreign Exchange Rate
FOREIGN EXCHANGE RATE 170 168.19 168.69 167.16 165 166.25 164.76 162.22 Rupees per Dollar 160 161.04 160.47 160.54 159.50 159.33 156.85 156.73 155 153.56 153.74 150 145 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21
Slide 27: KIBOR %
KIBOR % 7.90% 7.80% 7.70% 7.76% 7.78% 7.68% 7.60% 7.50% 7.49% 7.40% 7.43% 7.37% 7.38% 7.37% 7.30% 7.34% 7.34% 7.34% 7.32% 7.30% 7.30% 7.20% 7.24% 7.10% 7.00% 6.90% Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21
Slide 28: Thank you
Thank you