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Amreli Steels Limited, a prominent manufacturer of steel bars and billets in Pakistan, faced significant losses in the fiscal year ending on June 30th, 2023. Here are the key details:
Financial Loss: The company reported a substantial loss of Rs678.44 million for FY23. This marked a stark contrast to the previous fiscal year, FY22, during which the company had registered a profit of Rs1.33 billion.
Earnings per Share (EPS): The company declared a loss of Rs2.28 per share for FY23, which is a significant deviation from the profit of Rs4.46 per share reported in FY22.
Declining Sales: Amreli Steel’s sales declined notably from Rs58.19 billion in FY22 to Rs45.5 billion in FY23, reflecting a decrease of 22%.
Cost of Sales: The cost of sales also decreased by 23.5% to Rs39.53 billion in FY22, contributing to an 8% year-on-year decline in the company’s net profits. The net profit for FY23 was Rs5.96 billion compared to Rs6.5 billion in FY22.
Other Income: The company reported a substantial decline in its other income, which dropped by 66% to Rs8.3 million in FY23, in contrast to profits of Rs24.5 million in FY22.
Challenging Economic Landscape: The company’s poor financial performance in FY23 can be attributed to rising costs and the challenging political and economic conditions prevailing during that fiscal year.
Industry Challenges: The steel industry in Pakistan has faced difficulties in recent years due to sluggish economic conditions and import restrictions, which have impacted the financial performance of companies operating in this sector.
These financial challenges highlight the need for a conducive economic environment and supportive policies to strengthen the steel industry in Pakistan and enhance its contribution to national development.