The largest steel mill in private sector, Amreli Steels Limited, declared its financial results for the nine months ended March-2020 where company posted losses of Rs. 688 million (Loss Per Share: 2.2), as compared to profit of Rs. 223.5 million (Earnings Per Share: 0.75) recorded in the same period of last year.
The main reason of the losses were higher raw material cost which significantly decreased the gross margins, rise in major operational expenses, and increased tax expense.
The profitability of the company also declined as Finance cost increased by 1.08 times due to the increase in Interest rates in the last few months.
The Revenue of the company, witnessed 14% growth on due to higher price adjustments, witnessed especially during the third quarter.
|Rs. In ‘000||9MFY2020||9MFY2019||% Change|
|Cost of sales||(19,630,105)||(16,882,764)||16.27%|
|Net profit for the year||(688,044)||223,573|
|Earnings per share||(2.23)||0.75|