AMRELI STEELS LIMITED

F I NA NCIA L STAT MENTS F O R T HE Y E A R E ND E D 3 0 J U NE 2024

ECONOMIC
HIGHLIGHTS
FOR THE YEAR ENDED 30 JUNE 2024

Improved Current Account Stability in Reserves and

position strengthening of PKR

Decline in sales volume by 23%:

• Demand Compression & Price Competition
The positives in 1 & 2 have its • PKR Volatility in 1st Half of FY-24
impacts on aggregated • Election year and Political uncertainty
• Increase in Volumes of Un-graded Steel
national demand • IMF fresh Package & related conditions
• Working Capital Limits
 CURRENT ACCOUNT DEFICIT

Ex to Imp
Months Import Exports Trade deficit Remittance CAD
ratio
July 4,991 2,706 (2,285) 1,544 (741) 54%
August 5,117 3,081 (2,036) 1,884 (152) 60%
September 4,834 3,029 (1,805) 1,669 (136) 63%
1Q – FY24 14,942 8,816 (6,126) 5,097 (1,029) 59% Monthly Averages
October 5,176 3,357 (1,819) 1,626 (193) 65% Import USD 5.3 bn (USD 5bn) Increased by 5.6%
November 5,280 3,347 (1,933) 1,868 (65) 63%
December 4,972 3,542 (1,430) 1,795 365 71% Export USD 3.2 bn (USD 2.9 bn) Increased by 11.5%
2Q – FY24 15,428 10,246 (5,182) 5,289 107 66% Trade deficit USD 1.9 bn (USD 2.1 bn) Reduced by 2.6%
January 5,575 3,363 (2,212) 1,899 (313) 63%
February 5,068 3,209 (1,859) 2,019 160 60% Remittances USD 1.9 bn ( USD 1.8 bn) Increased by 6%
March 5,408 3,221 (2,187) 2,659 472 62% CAD USD 5 mn ( USD 227 mn) Reduced by 75%
3Q – FY24 16,051 9,793 (6,258) 6,577 319 61%
April 5,282 3,280 (2,002) 2,501 499 62%
May 5,897 3,688 (2,209) 1,961 (248) 63%
June 5,675 3,081 (2,594) 2,281 (313) 54%
4Q – FY24 16,854 10,049 (6,805) 6,743 (62) 60%
Total 63,275 38,904 (24,371) 23,706 (665) 61%
4th Vs 3rd 5% 3% 9% 3% -119%

SUMMARY – JULY – JUNE 2024

- Trade Deficit USD 24.3 bn (Last year USD 25bn) ------------- Reduced by 3%
- CAD USD 665 mn (Last year USD 2.7bn) ---------------------- Reduced by 76%
 USD VS PKR
Average PKR during 4Q was 279 (3Q FY24: 280). The dollar went up to 305 during the month of Aug-23.
However, after crackdown on smuggling and illegal exchange business PKR has gained its value and its now
trading at 280.
12 months (July to June-24) average PKR was 286 Vs 239 same period last year recording devaluation of 21%
(YoY).

INFLATION
The annual inflation rate in Pakistan clocked at 12.6% in June 2024. The decline in inflation is mainly due to a slowdown in
price increase of food and other commodities. Average inflation rate for FY-24 is 24%. In corresponding same period
inflation was 31.5%.

INTEREST RATE

Interest rate Reduced to 20.5% as of June-24 due to lower inflation number. As of today kibor reduced to 15%.

L.S.M

During FY-24, LSM grew by 0.99%.

LSM sector recorded by negative 10.26% in FY-23 (in same period last year it was positive 11.7%)
 FOREIGN EXCHANGE RATES
350

300
294
300 282 287 285
281 281 280 279 279 279 279

250
Rupees per USD

200

150

100

50

-
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
 KIBOR & POLICY RATES
30.00%

25.00% 23.16%
22.91%
21.98% 21.78% 22.12% 22.26% 21.99%
21.43% 21.62% 21.30% 21.59%
20.63%
20.00%
KIBOR

15.00%

10.00%

5.00%

0.00%
Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24
FINANCIAL
PERFORMANCE
FOR THE YEAR ENDED 30 JUNE 2024

Sales Gross Profit Operating loss

38.78 2.40 0.13

Billion Billion Billion

Loss per Bars Sold

Net (Loss) share
LPS
6.11 (20.56) 174,071
Billion Per share MT
 MARGINS & EPS
Year / FY 24 FY23 4th Qtr. 3rd Qtr.
Qtr. FY24 FY24
Gross
Profit / 6.19 13.09 (18.17) 7.94
(loss)%

Opr.
(loss) / (0.34) 8.79 (34.09) 3.14
Profit%

Net
(Loss)% (15.75) (1.53) (88.77) (4.68)

(LPS) (20.56) (2.35) (15.97) (1.76)

 PROFIT OR LOSS STATEMENT
Year ended 30 Year ended Qtr. Ended Qtr. Ended
June 2024 30 June 2023 30 June 2024 31 Mar. 2024
Rs. ‘000 % Rs. ‘000 % Rs. ‘000 % Rs. ‘000 %
Sales 38,775,737 100 45,492,724 100 5,342,089 100 11,182,624 100
Cost of sales (36,374,311) 93.81 (39,538,794) 86.91 (6,312,544) 118.17 (10,294,339) 92.06
Gross profit 2,401,426 6.19 5,953,930 13.09 (970,455) 18.17 888,285 7.94
Distribution cost (1,114,552) 2.87 (1,008,778) 2.22 (241,393) 4.52 (319,714) 2.86
Administrative cost (842,398) 2.17 (751,114) 1.65 (198,568) 3.72 (202,371) 1.81
ECL (Allowance) / Reversal (379,205) 0.98 (119,602) 0.26 (302,743) 5.67 (47,293) 0.42
Other charges (199,214) 0.51 (84,097) 0.18 (26,392) 0.49 (49,880) 0.45
Other income 3,156 0.01 8,312 0.02 (81,449) 1.52 82,492 0.74
Operating (loss) / profit (130,787) 0.34 3,998,651 8.79 (1,821,000) 34.09 351,519 3.14
Finance cost (4,772,416) 12.31 (4,043,279) 8.89 (1,221,600) 22.87 (1,287,686) 11.52
(Loss) before tax, Min and Final (4,903,203) 12.65 (44,628) 0.10 (3,042,600) 56.96 (936,167) 8.37
Levy (488,193) 1.26 (256,558) 0.56 (2,805) 0.05 (1,175) 0.01
(Loss) before taxation (5,391,396) 13.90 (301,186) 0.66 (3,045,406) 57.01 (937,343) 8.38
Taxation (Expense) / Reversal (715,327) 1.84 (396,010) 0.87 (1,696,939) 31.77 413,508 3.70
(Loss) after tax (6,106,723) 15.75 (697,196) 1.53 (4,742,345) 88.77 (523,835) 4.68
 RATIO ANALYSIS
UoM FY 24 FY 23
PROFITABILITY RATIOS
Gross profit ratio Percentage 6.19% 13.09%
Net (Loss) to sales ratio Percentage -15.75% -1.53%
Return on equity Percentage -42.9% -4.8%
INVESTMENT/ MARKET RATIOS
(Loss) per share Times (20.56) (2.35)
Interest cover Times -0.03 2.04
TURNOVER RATIOS
Total asset turnover Times 0.83 1.13
Fixed asset turnover Times 1.29 2.04

LIQUIDITY RATIOS 30 JUNE 2024 30 JUNE 2023

Current ratio Times 0.60 : 1 0.88:1
Quick / acid test ratio Times 0.33 : 1 0.53:1
Debtor turnover Days 36 46
Break value per share Rupees 48 48
CAPITAL STRUCTURE RATIOS
Long-term debt / equity ratio Times 0.28 : 1-N/A 0.38:1
Financial leverage ratio Times 1.54 : 1 1.43:1
FINANCIAL
STATEMENTS
 STATEMENT OF FINANCIAL POSITION
30 JUNE. 2024 30 JUNE 2023
Non-Current Assets ------Rs. ‘000’------ % -----Rs. ‘000’----- %
Property, Plant & Equipment 29,955,369 63.96 22,263,497 55.07
Right of use assets 100,238 0.21 135,731 0.34
Intangible assets 3,187 0.01 6,600 0.02
Long term deposits 175,573 0.37 193,717 0.48
Total Non-Current Assets 30,234,367 64.55 22,599,545 55.90
Current Assets
Stores and spares 2,453,480 5.24 2,609,216 6.45
Stock in-trade 7,162,016 15.29 7,092,139 17.54
Trade debts 2,349,962 5.02 4,973,402 12.30
Loans and advances 60,122 0.13 45,494 0.11
Trade deposits and prepayments 30,034 0.06 20,767 0.05
Shor-term Investment 14,289 0.03 14,289 0.04
Other receivables 988,633 2.11 211,236 0.52
Taxation – net 2,925,252 6.25 2,589,023 6.40
Cash and bank balances 195,444 0.42 271,913 0.67
16,179,233 34.54 17,827,479 44.10
Non current asset held for sale 423,170 0.90 - 0.00
Total Assets 46,836,770 100.00 40,427,024 100.00
 30 JUNE. 2024 30 JUNE 2023
-------Rs. ‘000’------ % -----Rs. ‘000’----- %
Share Capital & Reserves 14,226,002 30.37 14,376,185 35.56
Non-Current Liabilities
Long-term finances - 0.00 3,704,899 9.16
Long-term provision - 0.00 5,831 0.01
Loan from related party 124,922 0.27 - 0.00
Deferred taxation 4,946,265 10.56 1,149,001 2.84
Deferred liability 511,949 1.09 452,985 1.12
Lease liabilities 105,818 0.23 121,797 0.30
Government grant - 0.00 381,564 0.94
Total Non-Current Liabilities 5,688,955 12.15 5,816,077 14.39
Current Liabilities
Trade and other payables 2,471,417 5.28 4,801,861 11.88
Contract liabilities 437,296 0.93 479,226 1.19
Unclaimed Dividend 5,280 0.01 5,456 0.01
Accrued interest 1,457,719 3.11 800,283 1.98
Short term finance - secured 17,861,957 38.14 11,698,105 28.94
Current maturity of long-term finances 4,002,484 8.55 1,799,680 4.45
Current maturity of long-term provision 282,189 0.60 272,127 0.67
Current portion of government grant 369,161 0.79 27,161 0.07
Current maturity of related party loan - 0.00 316,333 0.78
Current maturity of right of use assets 34,310 0.07 34,529 0.09
Total Current Liabilities 26,921,813 57.48 20,234,762 50.05
Total Equities and Liabilities 46,836,770 100.00 40,427,024 100.00
 STATEMENT OF CASH FLOWS
30 JUNE 2024 30 JUNE 2023

---Rs.’000--- ---Rs.’000---
Cash generated before working capital changes 974,477 4,913,514
Cash generated from operations 151,315 11,563,827
Income taxed paid (329,302) (821,178)
Gratuity paid (54,380) (32,833)
Long term deposits and loans – net 18,144 10,276
Net cash (used in) / generated from operating activities (214,223) 10,720,092

Fixed capital expenditure (513,505) (1,597,660)

Proceeds from disposal of operating fixed assets 29,009 10,781
Addition to intangible assets - (2,347)
Net cash used in investing activities (484,496) (1,589,226)

Dividend paid (178) (154)

Short-term borrowings – net 4,888,680 (4,887,751)
Long-term financing – net (1,502,095) (525,273)
Related party loan (3,411) (25,000)
Finance cost paid (3,997,870) (3,680,499)
Lease rental paid (38,048) (52,730)
Net cash generated from / (used in) financing activities (652,922) (9,171,407)
Net (decrease) in cash and cash equivalents (1,351,640) (40,542)
Cash and cash equivalent at the beginning of the year (1,700,884) (1,660,341)
Cash and cash equivalents at the end of period (3,052,524) (1,700,884)
SALES
AND
PRODUCTION
 SALES ANALYSIS
4% 1% PROVINCE SEGMENT 8%
3% 3%
3%
WISE SALES WISE SALES
12%

FY 24
FY 24 59%
74%

33%
3%
7% 2% 7%
3%
9%

FY 23 23% FY 23
34%
58%
55%

PUNJAB GILGIT-
KPK BALOCHISTAN
BALTISTAN
SINDH CORPORATE GOVERNMENT PFC INDIVIDUAL RETAIL
 PRODUCTION AND CAPACITY UTILIZATION
PRODUCTION CAPACITY UTILIZATION
250,000

Production
200,000

SRM
Capacity

150,000
Production

DRM
100,000
Capacity

50,000 Production

SMS
Capacity
-
FY24 FY23 - 100,000 200,000 300,000 400,000 500,000 600,000
SMS DRM SRM FY23 FY24

SMS DRM SRM SMS DRM SRM

QTY FY 24 (MT) 167,043 134,238 34,301 QTY - FY 24 (MT) 28% 32% 19%
22% 6% 56%
QTY –FY 23 (MT) 215,230 127,097 78,383 QTY –FY 23 (MT) 36% 30% 44%
FUTURE OUTLOOK
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