Amreli Steels Ltd. · PSX:ASTL
Amreli Steels — H1 FY2022 Earnings Presentation
21 slides from Amreli Steels's earnings presentation, Feb 3, 2022
Slide 1: Results for the 2nd Quarter & Half Year Ended 31 December 2021
RESULTS FOR THE 2ND QUARTER & HALF YEAR ENDED 31 DECEMBER 2021 03 February 2022
Slide 2: Highlights 1H-FY 22
1 CURRENT ACCOUNT DEFICIT AND DECLINE IN FOREIGN EXCHANGE RESERVES 2 INCREASE IN KIBOR AND EXCHANGE RATES 3 INCREASE IN INTERNATIONAL SCRAP PRICES 4 INCREASE IN GLOBAL ECONOMIC ACTIVITY AND RELATED PRICE INCREASE 3% FURTHER TAX ON UNREGISTERED PERSON WHICH HAS 5 NOW BEEN EXCLUDED HIGHLIGHTS REDUCTIO
Slide 3: First Half FY 21-22
FIRST HALF FY 21-22 SALES GROSS OPR. REVENUE Up by PROFIT Margin Up by PROFIT Margin Up by Rs.26.6 Bn 53% Rs. 3.39 Bn 1.91% Rs. 2.40 Bn 2.21% NET PROFIT PRIME BAR Margin EPS Rs. 1.30 Bn Up by 2.47% Rs. 4.39 Up by 3 Times SOLD Up by 2.0% 178,912 MT
Slide 4: Margins & EPS
MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS 1H FY 22 12.74% 9.03% 4.90% 4.39 1H FY 21 10.83% 6.76% 2.42% 1.42
Slide 5: Margins & EPS
MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS 2Q FY 22 11.50% 7.84% 4.07% 2.03 1Q FY 22 14.29% 10.51% 5.93% 2.36
Slide 6: Profit or Loss Statement
PROFIT OR LOSS STATEMENT Half year 31 Half year 31 Qtr. Ended Qtr. Ended % % % % Dec. 2021 Dec. 2020 31 Dec. 2021 30 Sep. 2021 Rs. ‘000 Rs. ‘000 Rs. ‘000 Rs. ‘000 Sales 26,621,541 100 17,452,259 100 14,777,840 100 11,843,701 100 Cost Of Sales (23,230,051) 87.26 (15,561,517) 89.17 (13,078,541) 88.50
Slide 7: Quantity and Price Variance – 2Q FY22 vs 1Q FY22
QUANTITY AND PRICE VARIANCE – 2Q FY22 Vs. 1Q FY22 2Q-FY 22 1Q-FY 22 VARIANCE AMOUNT ‘000 SALES QUANTITY 95,239 88,004 7,235 134.58 973,655 PRICE (IN THOUSANDS) 155.17 134.43 20.58 95,239 1,960,484 NET SALES VARIANCE 2,934,139 COST OF SALES QUANTITY 95,239 88,004 7,235 (115.35) (834,542) PRICE (IN TH
Slide 8: Reconciliation of Profit After Tax
RECONCILIATION OF PROFIT AFTER TAX QUANTITY AND PRICE VARIANCE IMPACT Rs. ‘000’ REMARKS GROSS PROFIT INCREASE 7,107 As explained in above slide Mainly increased due to advertisement sales & promotion Rs. 24 million and DISTRIBUTION COST INCREASE (25,139) others. ADMINISTRATIVE COST DECREASE 714 Vari
Slide 9: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION ASSETS 31 DEC. 2021 % 30 JUNE 2021 % Non-current assets ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Property, Plant & Equipment 20,805,758 48.50 20,146,267 55.40 Intangibles 15,722 0.21 18,624 0.05 Long-term Investment 15,289 0.04 15,289 0.04 Lon
Slide 10: Equities and Liabilities
EQUITIES AND LIABILITIES 31 DEC. 2021 % 30 JUNE 2021 % ------------Rs. ‘000’--------- ------------Rs. ‘000’-------- Share capital & reserves 15,244,113 35.54 13,940,630 38.33 Non-current liabilities Long-term finances 4,886,730 11.34 4,820,910 13.26 Lease liabilities 75,710 0.18 84,963 0.23 Long-ter
Slide 11: Cash Flow Statement
CASH FLOW STATEMENT 31 DEC. 2021 31 DEC. 2020 Cash (used) / generated from operations (2,777,668) 3,863,895 Gratuity Paid (10,522) (14,215) Long term deposits paid (11,931) (18,838) Finance cost paid (780,532) (1,157,721) Income tax paid (327,795) (228,808) Net cash (used) / generated from operating
Slide 12: Ratio Analysis
RATIO ANALYSIS UoM FY 22 FY 21 PROFITABILITY RATIOS Gross profit ratio Percentage 12.74 10.83 Net profit to sales ratio Percentage 4.90 2.42 Return on equity (annualized) Percentage 15.8 9.1 INVESTMENT/ MARKET RATIOS Earning per share Times 4.39 1.42 Interest cover Times 2.92 1.48 TURNOVER RATIOS To
Slide 13: Scrap Cost – 1st Half FY22 and 1st Half FY21
SCRAP COST – 1st HALF FY 22 AND 1st HALF FY 21 SCRAP PRICE (CNF-$) SCRAP PRICES 600 120,000 500 100,000 Average price PKR Average $ per ton 531 400 80,000 Average price per ton 300 60,000 200 40,000 302 100 20,000 - - 1H FY22 1H FY21 Price in USD Price in PKR USD VS PKR SCRAP COST 97,884 171 56,506
Slide 14: Scrap Cost – 2nd Quarter FY22 and 1st Quarter FY22
SCRAP COST – 2ND QUARTER FY22 AND 1ST QUARTER FY 22 SCRAP (CNF-$) 536 Average price per ton 502 2nd Quarter FY 22 1st Quarter FY22 USD VS PKR SCRAP PURCHASE COST 174 102,046 165 91,737 2nd Quarter FY 22 1st Quarter FY22 2nd Quarter FY 22 1st Quarter FY22
Slide 15: Segment Wise Sales
SEGMENT WISE SALES 1ST HALF-FY 22 1ST HALF-FY 21 12% 14% 23% 19% 65% 66% Retail Corporate Government & PFC
Slide 16: Province Wise Sales
PROVINCE WISE SALES 1ST HALF - FY 22 1ST HALF -FY 21 5% 3% 6% 5% 29% 33% 57% 61% Sindh Punjab KPK Balochistan
Slide 17: Distribution Expenses, Administrative Expenses
DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES In 1H FY 22, Distribution expenses represents 1.89% of sales In 1H FY 22, Administration expenses represents 1.33% of sales revenue. revenue. In 1H FY 21, Distribution expenses represents 2.55% of sales In 1H FY 21, Administration expenses represents 1.4
Slide 18: Production and Capacity Utilization
PRODUCTION AND CAPACITY UTILIZATION PRODUCTION QUANTITIES CAPACITY UTILIZATION 250,000 Capacity 200,000 SRM Production Quantity in MT 150,000 Capacity DRM 100,000 Production 50,000 Capacity SMS Production - 1ST HALF FY 22 1ST HALF FY 21 - 50,000 100,000 150,000 200,000 250,000 300,000 350,000 SMS DR
Slide 19: Foreign Exchange Rate
FOREIGN EXCHANGE RATE 180 175 177.77 172.55 173.34 170 168.69 Rupees per Dollar 165 164.76 160 160.54 161.04 159.33 155 156.85 156.73 153.56 153.74 150 145 140 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21
Slide 20: KIBOR %
KIBOR % 8.60% 8.40% 8.38% 8.20% 8.00% 7.80% 7.92% 7.60% 7.40% 7.54% 7.45% 7.39% 7.20% 7.30% 7.34% 7.30% 7.34% 7.34% 7.32% 7.24% 7.00% 6.80% 6.60% Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 MP 7.25% MP 8.75% MP 9.75%
Slide 21: Thank you
Thank you