Amreli Steels Ltd. · PSX:ASTL
Amreli Steels — FY2023 Earnings Presentation
23 slides from Amreli Steels's earnings presentation, Jun 30, 2023
Slide 1: Amreli Steels Limited Financial Statements for the Year Ended 30 June 2023
AMRELI STEELS LIMITED FINANCIAL STATMENTS FOR THE YEAR ENDED 30 JUNE 2023
Slide 2: Company Profile
=a AMRELI STEELS Building for Life OMPANY PROFILE
Slide 3: Company Profile
COMPANY PROFILE Amreli Steels Limited (the Company) was incorporated in 1984 as a private limited Company and converted into a public unquoted Company in 2009. The Company enlisted on Pakistan Stock Exchange in December 2015 and is mainly engaged in manufacturing and sale of steel rebars and billets
Slide 4: Economic Highlights
=a Building for Life CONOMIC HIGHLIGHTS
Slide 5: For the Year and Quarter Ended June 2023
FOR THE YEAR AND QUARTER ENDED 30 JUNE 2023 Record decline in foreign exchange reserves Letter of credit crisis & declining economic growth Significant rupee devaluation Imbalance between twin deficits Record inflation and rising interest rates Political & Market uncertainty & demand compression
Slide 6: USD vs PKR, Inflation, Interest Rate
USD Vs. PKR INFLATION INTEREST RATE Interest rate closed at 21% Average PKR during 4Q The annual inflation rate in as of June-23. However, in was 286 (3Q: 261) Pakistan eased for the first July-23 interest rate was increased mainly due to time in seven months to increased by 1% to 22%. uncertainty r
Slide 7: Foreign Exchange Rates
FOREIGN EXCHANGE RATES 350 300 285 286 287 271 276 250 232 235 222 225 221 223 226 Rupees per USD 200 150 100 50 - Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23
Slide 8: KIBOR & Policy Rates
KIBOR & POLICY RATES 25.00% 20% 22% 20% 20.00% 17% 17% 17% 15% 15% 16% 16% 16% 15% 15.00% KIBOR 10.00% 5.00% 0.00% Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 MP 15.0% MP 16.0% MP 17.0% MP 20.0% MP 22.0%
Slide 9: Financial Performance
a AMRELI STEELS Building for Life FINANCIAL PERFORMANCE
Slide 10: For the Year Ended June 2023
FOR THE YEAR ENDED 30 JUNE 2023 Sales Gross Profit Operating Profit 45.4 5.9 4.0 Billion Billion Billion Loss per Bars Sold Net Loss share EPS 678.4 2.28 218,279 Million Per share MT
Slide 11: Margins & EPS
MARGINS & EPS Year Year Year / ended ended 4th Qtr. 3rd Qtr. Qtr. FY23 FY22 FY23 FY23 Gross Profit % 13.11 11.16 13.09 18.06 Opr. Profit % 8.81 7.54 8.59 13.18 Net (Loss) / Profit % (1.49) 2.28 (8.98) 4.08 EPS / (LPS) (2.28) 4.46 (3.26) 1.60
Slide 12: Financial Statements
FINANCIAL Mihing ore STATEMENTS
Slide 13: Profit or Loss Statement
PROFIT OR LOSS STATEMENT Period ended Period ended Qtr. Ended Qtr. Ended 30 June. 2023 30 June. 2022 30 June. 2023 31 Mar. 2023 Rs. ‘000 % Rs. ‘000 % Rs. ‘000 % Rs. ‘000 % Sales 45,492,724 100 58,184,282 100 10,794,901 100 11,666,940 100 Cost of sales (39,530,560) 86.89 (51,692,795) 88.84 (9,382,263
Slide 14: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION 30 JUNE 2023 30 JUNE 2022 Non-Current Assets ------Rs. ‘000’------ % -----Rs. ‘000’----- % Property, Plant & Equipment 22,263,497 55.08 21,578,252 49.55 Right of use assets 135,731 0.34 76,410 0.18 Intangible assets 6,600 0.02 11,872 0.03 Long term investment 14,289 0
Slide 15: Statement of Financial Position: Equity and Liabilities
30 JUNE 2023 30 JUNE 2022 -------Rs. ‘000’------ % -----Rs. ‘000’----- % Share Capital & Reserves 14,562,241 36.96 15,254,706 35.03 Non-Current Liabilities Long-term finances 3,704,899 9.17 4,820,914 11.07 Long-term provision 146,863 0.36 154,463 0.35 Related party loan - 0.00 341,333 0.78 Deferred
Slide 16: Statement of Cash Flows
STATEMENT OF CASH FLOWS 30 JUNE 2023 30 JUNE 2022 ---Rs.’000--- ---Rs.’000--- Cash generated before working capital changes 5,170,706 4,766,788 Cash generated from operations 11,564,461 522,899 Income taxed paid (821,178) (631,537) Gratuity paid (32,833) (27,871) Finance costs paid (3,680,499) (2,00
Slide 17: Ratio Analysis
RATIO ANALYSIS UoM FY 23 FY 22 PROFITABILITY RATIOS Gross profit ratio Percentage 13.11% 11.16% Net (loss) / profit to sales ratio Percentage -1.49% 2.28% Return on equity Percentage -4.7% 8.7% INVESTMENT/ MARKET RATIOS (Loss) / Earning per share Times (2.28) 4.46 Interest cover Times 1.03 1.97 TURN
Slide 18: Sales and Production
SALES AND PRODUCTION
Slide 19: Sales Volume
SALES VOLUME SALE QUANTITY (TONS) REASON FOR VARIANCE – YoY 120 The sales revenue decreased by 22% primarily due to decline in sale volumes by 100 38% contributed by series of event such as flash floods, political unrest, record high TONNAGE 80 interest rates and inflation, falling reserves and meas
Slide 20: Variance in Cost of Sales
VARIANCE IN COST OF SALES REASON FOR VARIANCE - YoY Cost of sale on YoY basis increased by 24% on per ton basis . The major increase pertains to increase in scrap cost which contribute 60% in total increase. Rupee YoY depreciated by 35% from 177 to 240 whereas scrap prices decline by 11% from 543 to
Slide 21: Production and Capacity Utilization
PRODUCTION AND CAPACITY UTILIZATION PRODUCTION CAPACITY UTILIZATION 400,000 Capacity 350,000 SRM 300,000 Production 250,000 Capacity DRM 200,000 Production 150,000 100,000 Capacity SMS 50,000 Production - FY 23 FY 22 - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 SMS DRM SRM FY 23 FY 22 S
Slide 22: Future Outlook
Future Outlook Local Projected growth target of 2.4% Related Current Account Deficit approx. USD 6.5 bn and its management Management of Fiscal Deficit approx. R. 7.5 trillion Reserves position, gap b/w projected inflows and outflows and related USD situation Ongoing and Upcoming IMF rev
Slide 23: Thank You
THANK YOU