Amreli Steels Ltd. · PSX:ASTL
Amreli Steels — FY2021 Earnings Presentation
24 slides from Amreli Steels's earnings presentation, Nov 12, 2021
Slide 1: Corporate Briefing for the Year Ended 30 June 2021
CORPORATE BRIEFING FOR THE YEAR ENDED 30 JUNE 2021 12 November 2021
Slide 2: Highlights FY 20-21
DECLINE IN EXCHANGE RATE DECLINE & STABILTY IN KIBOR DEFERMENT OF LOANS INCREASE IN INTERNATIONAL SCRAP PRICES INCREASE IN DEMAND OF CONSTRUCTION MATERIALS HIGHLIGHTS CONSTRUCTION PACKAGE, HOUSING LOANS & TAX AMNESTY FY 20-21 CHANGE OF DEPRECIATION EST. AND ACCONTING POLICY FOR INVENTORY VALUATION C
Slide 3: Financial Year 2020-2021
FINANCIAL YEAR 2020-2021 SALES GROSS OPR. REVENUE Up by PROFIT Margin PROFIT Margin Rs.39 Bn 48% Rs.4.5 Bn Up by 4.7% Rs.3.0 Bn Up by 6.3% NET PROFIT Margin EPS Times QTY SOLD Rs.1.3 Bn Up by 8.1% Rs. 4.61 Up by 2.0 362,949 MT Up by 33%
Slide 4: Margins & EPS
MARGINS & EPS GROSS PROFIT OPR. PROFIT NET PROFIT EPS FY 21 11.58% 7.73% 3.49% 4.61 FY 20 6.83% 1.34% -4.68% (4.18)
Slide 5: Income statement: year ended 30 June 2021
Year ended 30 Year ended 30 Qtr. Ended 30 Qtr. Ended 31 % % % % Jun. 2021 Jun. 2020 June. 2021 Mar. 2021 (Restated) Rs.000 Rs.000 Rs.000 Rs.000 Sales 39,218,453 100 26,532,144 100 11,990,544 100 9,775,650 100 Cost Of Sales (34,676,315) 88.42 (24,718,958) 93.17 (10,699,276) 89.23 (8,415,523) 86.09 Gr
Slide 6: Quarterly income statement
Qtr. ended 30 Qtr. ended 31 Qtr. Ended 31 Qtr. Ended 30 % % % % Sep. 2021 Dec. 2020 Mar. 2021 June. 2021 Rs.000 (Rs.000 Rs.000 Rs.000 Sales 7,914,003 100 9,538,256 100 9,775,650 100 11,990,544 100 Cost Of Sales (7,051,171) 89.10 (8,510,346) 89.22 (8,415,523) 86.09 (10,699,276) 89.23 Gross Profit 862
Slide 7: Quantity and Price Variance – FY21 vs FY20
QUANTITY AND PRICE VARIANCE – FY21 Vs. FY20 FY 21 FY 20 VARIANCE AMOUNT ‘000’ SALES QUANTITY 376,685 282,982 93,702 93.76 8,785,430 PRICE (IN THOUSANDS) 104.11 93.76 10.36 376,685 3,900,879 NET SALES VARIANCE 12,686,309 COST OF SALES QUANTITY 376,685 282,982 93,702 (87.35) (8,185,041) PRICE (IN THOU
Slide 8: Statement of Financial Position
STATEMENT OF FINANCIAL POSITION ASSETS 30 JUNE 2021 % 30 JUNE 2020 % Non-current assets ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Property, Plant & Equipment 20,146,267 55.40 17,650,951 50.08 Intangibles 18,624 0.05 24,266 0.07 Long-term Investment 15,289 0.04 15,289 0.04 Lon
Slide 9: Equities and Liabilities
EQUITIES AND LIABILITIES 30 JUNE 2021 % 30 JUNE 2020 % ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Restated Share capital & reserves 13,940,630 38.33 10,950,519 31.07 Non-current liabilities Long-term finances 4,820,910 13.26 5,429,984 15.41 Lease liabilities 84,963 0.23 63,600
Slide 10: Equities and Liabilities: share capital and reserves
EQUITIES AND LIABILITIES 30 JUNE 2021 % 30 JUNE 2020 % ------------Rs. ‘000’----------- ------------Rs. ‘000’----------- Restated Share capital 2,970,114 8.17 2,970,114 8.43 Capital reserve 2,788,742 7.67 2,788,742 7.91 Revenue reserves - accumulated profit 4,471,374 12.30 2,963,238 8.41 Actuarial l
Slide 11: Cash Flow Statement
CASH FLOW STATEMENT Cash flow from operations 30 JUNE 2021 30 JUNE 2020 ‘000’ ‘000’ (Restated) Profit / (loss) before taxation 1,383,951 (1,943,015) Adjustments for: Depreciation – operating fixed assets 528,806 859,352 Depreciation – right-of-use-asset 23,012 10,816 Amortization 8,681 12,903 Un-rea
Slide 12: Cash Flow Statement
CASH FLOW STATEMENT 30 JUNE 2021 30 JUNE 2020 Cash generated from operations 4,879,330 (1,486,148) Gratuity Paid (36,236) (16,284) Long term deposits paid (17,387) 2,784 Income tax paid (437,141) (435,303) Finance cost paid (1,948,293) (2,067,971) Net cash generated from / (used in) operating activi
Slide 13: Ratio Analysis
RATIO ANALYSIS UoM FY 21 FY 20 (Restated) PROFITABILITY RATIOS Gross Profit ratio Percentage 11.58 6.83 Net profit / (loss) to sales ratio Percentage 3.49 (4.68) Return on Equity Percentage 9.8 (11.30) INVESTMENT/ MARKET RATIOS Earning / (Loss) per Share Times 4.61 (4.18) Interest Cover Times 1.86 0
Slide 14: Sales Analysis and Reason for Variance
REASON FOR VARIANCE - YoY SALES ANALYSIS Sales revenue observed an inclining trajectory during the ended of FY 21. The sales revenue SALE PRICE PER TON increased by 48% and sales quantity increased by 140 33% when compared to same period of last year. 120 Prices also increased by 11% YoY due to upti
Slide 15: Scrap Cost
SCRAP COST Scrap Purchase cost (Rs. per ton) 100,000 80,000 60,000 40,000 20,000 - September 30 - 1Q December 31 - 2Q March 31 - 3Q June 30 - 4Q 2020-2021 2019-2020 PKR Vs USD SCRAP CNF USD 180.00 500 450 160.00 400 140.00 350 120.00 300 100.00 250 September 30 - 1Q December 31 - 2Q March 31 - 3Q Ju
Slide 16: Cost of Sales Analysis
COST OF SALES ANALYSIS Cost of sale – Per ton Cost of sale on YoY basis increased by 120 5% on per ton basis . The increase pertains to provision for FCA (July-19 to 100 May-21), significant increase in scrap Rupees in ‘000’ prices, increase in electricity tariff by 80 Rs. 2.89 per kwh and Rs. 1.95/
Slide 17: Segment Wise Sales
SEGMENT WISE SALES FY 21 FY 20 13.64% 16.10% 22.68% 25.07% 58.83% 63.68% Retail Corporate Government & PFC Retail Corporate Government & PFC
Slide 18: Province Wise Sales
PROVINCE WISE SALES FY 21 FY 20 3.70% 5.67% 5.25% 1.03% 0.08% 3.79% 27.66% 31.88% 63.22% 57.73% Sindh Punjab Gilgit-Baltistan KPK Balochistan Sindh Punjab Gilgit-Baltistan KPK Balochistan
Slide 19: Sales Quantities
SALES QUANTITIES 50,000 45,000 42,911 40,000 36,438 35,000 33,585 33,014 32,464 30,801 30,666 Quantities in M.Tons 30,000 28,588 26,149 25,600 24,643 25,000 20,000 18,089 15,000 10,000 5,000 - July-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 March-21 April-21 May-21 June-21
Slide 20: Administrative & Distribution Expenses
ADMINISTRATIVE & DISTRIBUTION EXPENSES DISTRIBUTION EXPENSES ADMINISTRATIVE EXPENSES In FY 21, distribution expense represents 2.41% of sales revenue. In FY 21, Admn. expense represents 1.41% of sales revenue. In FY 20, distribution expense represents 2.57% of sales revenue. In FY 20, Admn. expense
Slide 21: Production and Capacity Utilization
PRODUCTION AND CAPACITY UTILIZATION PRODUCTION QUANTITIES CAPACITY UTILIZATION 400,000 Capacity SRM 350,000 Production 300,000 250,000 Capacity DRM 200,000 Production 150,000 Capacity 100,000 SMS 50,000 Production - - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 FY21 FY20 FY 21 FY 20 Bill
Slide 22: Foreign Exchange Rate
145.00 150.00 155.00 160.00 165.00 170.00 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 FY 20 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 FOREIGN EXCHANGE RATE FY 21 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Slide 23: KIBOR
10.00% 12.00% 14.00% 16.00% 0.00% 2.00% 4.00% 8.00% 6.00% Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 FY20 Feb-20 Mar-20 Apr-20 2020 May-20 Jun-20 Jul-20 KIBOR % Aug-20 2021 Sep-20 Oct-20 Nov-20 Dec-20 FY 21 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Slide 24: Thank you
“Thaw you