Amreli Steels bleeds, loss for FY24 stands at Rs6.1bn as sales drop

Amreli Steels Limited sustained massive losses to the tune of Rs6.1 billion amid a drop in sales and high expenses during the year that ended June 30, 2024.

As per the company’s latest financial results provided to the Pakistan Stock Exchange (PSX) on Monday, Amreli registered a loss of Rs697.2 million in the same period of the previous year.

Resultantly, loss per share (LPS) clocked in at Rs20.56 in the period under review compared to LPS of Rs2.35 in SPLY.

The steel manufacturer’s net sales lowered by 15% to Rs38.8 billion during FY24, compared to Rs45.5 billion recorded in the prior year.

FY23: Amreli Steels posts loss of Rs678.4mn amid drop in sales, higher finance cost

It also saw its gross profit drop to Rs2.4 billion in FY24, down 60% as compared to Rs5.95 billion in the previous year.

The steel maker saw its expenses rise to Rs2.54 billion in FY24, as compared to Rs1.96 billion in FY23, up nearly 30%.

During the period, the company’s other income also plunged to a mere Rs3.2 million, down over 63% year-on-year.

Meanwhile, the company’s cost of finance jumped to Rs4.8 billion in FY23, an increase of 18%. The increase comes as interest rate increased significantly during the year.

Its share price also plummeted during the session, closing at Rs20.64 after hitting the lower limit with a decrease of Rs2.29 or 10%.

Amreli Steels Limited was established as a private limited company in 1984. It was converted into a public unquoted company in 2009.

The company manufactures and sells steel bars and billets at its production plants located in Shershah, Karachi and District Thatta, Sindh.