Amreli Steels faces losses of Rs678.44m in FY23
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Amreli Steels Limited (SPLY), a prominent manufacturer of steel bars and billets, has reported a loss of Rs678.44 million for the fiscal year ending on June 30th, 2023. This marks a significant contrast from the previous fiscal year, FY22, during which the company registered a profit of Rs1.33 billion.
The sharp downturn in financial performance, amounting to nearly -49% compared to FY22, can be attributed to rising costs and the challenging political and economic landscape prevailing during FY23. Consequently, the company has declared a loss of Rs2.28 per share, in stark contrast to the Rs4.46 profit per share reported in FY22.
The company’s sales have witnessed a substantial decline, falling from Rs58.19 billion in FY22 to Rs45.5 billion in FY23, reflecting a straight loss of 22%. Additionally, the cost of sales dropped by 23.5% to Rs39.53 billion in FY22, contributing to an 8% year-on-year decline in the company’s net profits, which stood at Rs5.96 billion in FY23 compared to Rs6.5 billion in FY22. The steel industry plays a vital role in supporting the country’s infrastructural development. However, the sluggish economic conditions in recent years, coupled with import restrictions, have taken a toll on this sector, resulting in substantial losses for companies operating within it.
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Amreli Steel also reported a sharp decline in its other income, plummeting by 66% to Rs8.3 million in FY23, as opposed to profits of Rs24.5 million in FY22.
The company’s financial challenges in FY-23 highlight the need for a conducive economic environment and supportive policies to bolster the steel industry and its contribution to national development.
Published in The Express Tribune, September 9th, 2023.
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