Amreli Steels Ltd. · PSX:ASTL

Amreli Steels — 9M FY2022 Earnings Presentation

24 slides from Amreli Steels's earnings presentation, Apr 21, 2022

  1. Slide 1: Analysts' Briefing: Results for 3rd Quarter & Nine Months Ended 31 March 2022

    ANALYSTS’ BRIEFING RESULTS FOR THE 3RD QUARTER & NINE MONTHS ENDED 31 MARCH 2022 21 April 2022

  2. Slide 2: Highlights for the 3rd Quarter & Up to Nine Months FY22

    HIGHLIGHTS FOR THE 3RD QUARTER & UP TO NINE MONTHS FY 22 WIDENING CURRENT ACCOUNT DEFICIT AND DECLINING FX B 3% FURTHER TAX ON UNREGISTERED PERSON, LATER T RESERVES E WITHDRAWN H G I INCREASE IN EXCHANGE RATE, INFLATION AND I REDUCTION IN MINIMUM TAX FROM 1.25% TO 0.25% FOR R INTEREST RATES N RETAIL

  3. Slide 3: Nine Months FY 21-22

    NINE MONTHS FY 21-22 SALES GROSS OPR. REVENUE Up by PROFIT Margin PROFIT Margin Rs.42.5 Bn 56% Rs.5.09 Bn Up by 0.05% Rs.3.61 Bn Up by 0.58% NET PROFIT Margin PRIME BAR EPS Rs.1.83 Bn 0.91% Up by Rs.6.18 Up by 2 Times SOLD Up by 275,549 MT 5.0%

  4. Slide 4: Margins & EPS (9M FY22 vs 9M FY21)

    MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS 9M FY 22 11.99% 8.51% 4.31% 6.18 9M FY 21 11.94% 7.93% 3.41% 3.12

  5. Slide 5: Margins & EPS (3Q vs 2Q FY22)

    MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS 3Q FY 22 10.73% 7.64% 3.33% 1.79 2Q FY 22 11.50% 7.84% 4.07% 2.03

  6. Slide 6: Profit or Loss Statement

    PROFIT OR LOSS STATEMENT Nine months Nine months Qtr. Ended 31 Qtr. Ended % % % % 31 Mar. 2022 31 Mar. 2021 Mar. 2022 31 Dec. 2021 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Sales 42,537,223 100 27,227,909 100 15,915,681 100 14,777,840 100 Cost Of Sales (37,438,087) 88.01 (23,977,040) 88.06 (14,208,036) 89

  7. Slide 7: Quantity and Price Variance – 9M FY22 vs 9M FY21

    QUANTITY AND PRICE VARIANCE – 9M FY22 Vs. 9M FY21 Nine months Nine months VARIANCE AMOUNT ‘000 FY 22 FY 21 SALES QUANTITY 281,735 272,198 9,537 100.03 953,943 PRICE (IN THOUSANDS) 150.98 100.03 50.95 281,735 14,355,371 NET SALES VARIANCE 15,309,314 COST OF SALES QUANTITY 281,735 272,198 9,537 (88.09

  8. Slide 8: Quantity and Price Variance – 3Q vs 2Q FY22

    QUANTITY AND PRICE VARIANCE – 3Q Vs. 2Q FY22 3Q-FY 22 2Q-FY 22 VARIANCE AMOUNT ‘000 SALES QUANTITY 98,492 95,239 3,253 155.17 504,756 PRICE (IN THOUSANDS) 161.59 155.17 6.43 98,492 633,085 NET SALES VARIANCE 1,137,841 COST OF SALES QUANTITY 98,492 95,239 3,253 (137.32) (446,697) PRICE (IN THOUSANDS)

  9. Slide 9: Statement of Financial Position

    STATEMENT OF FINANCIAL POSITION ASSETS 31 MAR. 2022 % 30 JUNE 2021 % Non-current assets ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Property, Plant & Equipment 21,290,588 47.67 20,146,267 55.40 Intangibles 13,797 0.18 18,624 0.05 Long-term Investment 14,289 0.03 15,289 0.04 Lon

  10. Slide 10: Equities and Liabilities

    EQUITIES AND LIABILITIES 31 MAR. 2022 % 30 JUNE 2021 % ------------Rs. ‘000’--------- ------------Rs. ‘000’-------- Share capital & reserves 15,774,670 35.32 13,940,630 38.33 Non-current liabilities Long-term finances 4,668,914 10.45 4,820,910 13.26 Lease liabilities 72,611 0.16 84,963 0.23 Long-ter

  11. Slide 11: Cash Flow Statement

    CASH FLOW STATEMENT 31 MAR. 2022 31 MAR. 2021 Cash generated before working capital changes 4,148,652 2,589,083 Cash (used) / generated from operations (2,212,346) 1,291,767 Gratuity Paid (23,359) (24,048) Long term deposits - net (14,157) (16,815) Income tax paid (505,422) (325,037) Net cash (used)

  12. Slide 12: Ratio Analysis

    RATIO ANALYSIS UoM NINE MONTHS FY 22 NINE MONTHS FY 21 PROFITABILITY RATIOS Gross profit ratio Percentage 11.99 11.94 Net profit to sales ratio Percentage 4.31 3.40 Return on equity (annualized) Percentage 14.9 8.10 INVESTMENT/ MARKET RATIOS Earning per share Times 6.18 3.12 Interest cover Times 2.5

  13. Slide 13: Scrap Cost – Nine Months FY22 and FY21

    SCRAP COST – NINE MONTHS FY22 AND FY 21 SCRAP (CNF-$) MONTHLY SCRAP PRICES 120,000 570 560 100,000 550 Amount in USD 538 Amount in PKR 80,000 540 530 60,000 350 520 40,000 510 500 20,000 490 - 480 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 9M FY22 9M FY21 Per ton PKR Per ton $ US

  14. Slide 14: Billets Cost – Nine Months FY22 and FY21

    BILLETS COST – NINE MONTHS FY 22 AND FY 21 SCRAP CONSUMPTION (RS/MT) 101,340 58,897 9M FY22 9M FY21 BILLET COGM (RS/MT) BILLET FOH (RS/MT) 14,000 12,000 124,407 10,000 8,000 77,508 6,000 4,000 2,000 - Additives Salaries Utility Store & Spares Depreciation Others 9M FY22 9M FY21 9M FY22 9M FY21

  15. Slide 15: Rebars Cost – Nine Months FY22 and FY21

    REBARS COST – NINE MONTHS FY 22 AND FY 21 BILLET CONSUMED (RS/MT) 128,753 83,257 9M FY22 9M FY21 REBARS COGM (RS/MT) REBARS FOH (RS/MT) 4,500 4,000 136,829 3,500 3,000 90,207 2,500 2,000 1,500 1,000 500 - Stores & Salaries Cartage Utility Depreciation Others Spares 9M FY22 9M FY21 9M FY22 9M FY21

  16. Slide 16: Scrap Cost – 3rd Quarter FY22 and 2nd Quarter FY22

    SCRAP COST – 3RD QUARTER FY22 AND 2ND QUARTER FY 22 SCRAP (CNF-$) 553 536 3rd Quarter FY 22 2nd Quarter FY 22 USD VS PKR SCRAP COST (LANDED) 178 108,521 174 102,046 3rd Quarter FY 22 2nd Quarter FY 22 3rd Quarter FY 22 2nd Quarter FY 22

  17. Slide 17: Rebar Cost – 3rd Quarter and 2nd Quarter FY22

    REBAR COST – 3RD QUARTER AND 2ND QUARTER FY22 BILLET CONSUMED (RS/MT) 140,281 131,732 3rd Quarter FY 22 2nd Quarter FY 22 REBARS FOH (RS/MT) REBARS COGM (RS/MT) 4,500 4,000 148,439 3,500 3,000 2,500 2,000 1,500 139,480 1,000 500 - Stores & Salaries & Cartage Utility Depreciation Others Spares Wages

  18. Slide 18: Segment Wise Sales

    SEGMENT WISE SALES NINE MONTHS -FY 22 NINE MONTHS - FY 21 14.19% 12.75% 19.25% 23.50% 66.56% 63.75% Retail Corporate Government & PFC

  19. Slide 19: Province Wise Sales

    PROVINCE WISE SALES NINE MONTHS - FY 22 NINE MONTHS -FY 21 KPK Balochistan KPK Balochistan 6% 4% 4% 5% Punjab Punjab 29% 32% Sindh Sindh 59% 61%

  20. Slide 20: Distribution Expenses, Administrative Expenses

    DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES In 9M FY 22, Distribution expenses represents 1.91% of sales In 9M FY 22, Administration expenses represents 1.20% of sales revenue. revenue. In 9M FY 21, Distribution expenses represents 2.43% of sales In 9M FY 21, Administration expenses represents 1.4

  21. Slide 21: Production and Capacity Utilization

    PRODUCTION AND CAPACITY UTILIZATION PRODUCTION QUANTITIES CAPACITY UTILIZATION 350,000 Capacity SRM 300,000 Production 250,000 Quantities in MT Capacity DRM 200,000 Production 150,000 Capacity 100,000 SMS 50,000 Production - ‘000 - 100 200 300 400 500 NINE MONTHS FY 22 NINE MONTHS FY 21 SMS DRM SRM

  22. Slide 22: Foreign Exchange Rate

    FOREIGN EXCHANGE RATE 185 180 180.05 175 177.77 176.75 176.06 170 173.34 Rupees per Dollar 172.55 165 168.69 164.76 160 161.04 155 156.73 150 153.56 153.74 145 140 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22

  23. Slide 23: KIBOR %

    KIBOR % 12.00% 10.00% 10.45% 10.28% 9.83% 8.00% 8.38% 7.92% 7.30% 7.34% 7.34% 7.45% 7.39% 7.32% 7.54% 6.00% 4.00% 2.00% 0.00% Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 MP 7.25% MP 8.75% MP 9.75%

  24. Slide 24: Thank you

    Thank you

Amreli Steels — 9M FY2022 Earnings Presentation on 6ix