ASTL rides back into profit territory
29-Apr-2026
MettisGlobal
April 29, 2026 (MLN): Amreli Steels Limited (PSX: ASTL) reported a
spectacular financial turnaround for the nine months ended March 31, 2026,
swinging from a massive net loss of Rs2.86bn in the previous year to a robust
net profit of Rs868.16m.
Reflecting this dramatic recovery, the company's basic and
diluted earnings per share (EPS) turned positive, recording Rs2.72 compared to
a loss per share of Rs9.62 in 9MFY25.
However, the multi-fold profit growth masked ongoing
weaknesses in the company's core operations.
ASTL’s top-line sales remained virtually flat, edging up by
just 1% year-on-year to Rs13.04bn from Rs12.91bn.
The cost of sales increased at a slightly faster pace of
1.4% to Rs12.75bn.
This resulted in further margin compression, causing the
gross profit to shrink by 13% to Rs294.12m, down from Rs339.88m last year.
On the operational front, the company remained in the red,
although the deficit narrowed.
Administrative expenses rose by 4% to Rs597.05m, and the
company booked a Rs62.94m provision for expected credit losses (a reversal from
a Rs78.18m credit last year).
However, other expenses were slashed by 53% to Rs146.52m,
and "other income" witnessed a massive surge to Rs667.37m.
Aided heavily by this secondary income, the company managed
to narrow its operating loss by 62%, bringing it down to Rs300.21m from
Rs791.88m in 9MFY25.
Below the operating line, finance costs remained a heavy
burden at Rs2.38bn, despite dropping by 24% year-on-year.
Standing alone, the operating losses and massive debt
servicing would have plunged the company deep into a Rs2.68bn deficit.
The absolute catalyst that rescued ASTL's financials was a
massive, one-off "Gain on restructuring of loans" amounting to
Rs3.07bn.
This single extraordinary item instantly catapulted the
company out of the red, resulting in a profit before levy and taxation of
Rs390.52m.
After accounting for a flat statutory levy of Rs162.75m, the
profit before taxation stood at Rs227.78m.
Finally, a significant tax credit/reversal of Rs640.39m
further amplified the bottom line, allowing Amreli Steels to securely close the
nine-month period with a final net profit of Rs868.16m.
|
STATEMENT OF PROFIT OR
LOSS FOR THE NINE MONTH ENDED MARCH 31, 2026 (Rs.000) |
|||
|
Description |
2026 |
2025 |
change % |
|
Sales |
13,039,970 |
12,910,413 |
1% |
|
Cost
of sales |
(12,745,854) |
(12,570,532) |
1% |
|
Gross
profit |
294,116 |
339,881 |
-13% |
|
Distribution
costs |
(455,191) |
(444,051) |
3% |
|
Administrative
expenses |
(597,052) |
(572,210) |
4% |
|
(Provision
) / reversal of expected credit loss |
(62,935) |
78,177 |
|
|
Other
expenses |
(146,518) |
(313,520) |
-53% |
|
Other
income |
667,367 |
119,843 |
457% |
|
Operating
(loss) / profit |
(300,213) |
(791,880) |
-62% |
|
Finance
costs |
(2,381,913) |
(3,140,724) |
-24% |
|
(Subtotal) |
(2,682,126) |
(3,932,604) |
-32% |
|
Gain
on restructuring of loans |
3,072,647 |
- |
|
|
Profit
/ (loss) before levy and taxation |
390,521 |
(3,932,604) |
|
|
Levy |
(162,745) |
(162,053) |
0.4% |
|
Profit
/ (loss) before taxation |
227,776 |
(4,094,657) |
|
|
Taxation |
640,388 |
1,236,053 |
-48% |
|
Profit
/ (loss) for the period |
868,164 |
(2,858,604) |
|
|
Profit
/ (loss) per share – basic and diluted (Rupees) |
2.72 |
(9.62) |
|
Copyright