The Board of Directors of Aisha Steel Mills Limited (ASL) announced the financial result for 1QFY21 today, where the company posted its highest ever quarterly profit since inception of PKR 660 million translating into EPS PKR 0.82.
Pertinently, sales of the company grew by a stunning 82% YoY as the company undertook expansion in its CRC capacity to 700,000 tons per annum which augmented volumes and improved its sales mix (ASL now sells galvanized steel; a higher margin product). This remarkable growth in revenue translated into a 420bps YoY jump in the gross margins to 13.2% as compared to 9.0% in same period last year, which offset the impact of PKR depreciation and higher HRC prices.
Aisha Steel Limited’s management also highlighted that since Mar’20 to date, the State Bank of Pakistan (SBP) has slashed the benchmark policy rate to 7%, which aided a 38% decline in financial charges to PKR 444 million, supporting bottom-line growth. The company also booked effective taxation at 26% as compared to a tax credit of PKR 36million in 1QFY20.