Qudsia Bano

Agha Steel Industries Limited’s revenue from sales decreased by 22% to Rs11.4 billion in the first six months of the ongoing financial year 2022-23 (6MFY23) from Rs14.7 billion over the corresponding period of the previous fiscal. Similarly, the gross profit of the company decreased by 21% to Rs2.24 billion in 6MFY23 from Rs2.84 billion recorded in 6MFY22.

The company posted a net profit of Rs402 million in the first six months of FY23, which was down 66% from the profit of Rs1.2 billion in the corresponding period of the previous year. This was mainly due to the decreasing demand for deformed bars and billets coupled with exorbitant currency devaluation and an abrupt spike in electricity rates during the period, reports WealthPK.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales rose to Rs30 billion from Rs23.2 billion in FY21, posting an increase of 29% year-on-year. The gross profit for FY22 stood at Rs5.4 billion, up 22% from Rs4.5 billion in FY21. The company’s before-tax profit decreased to Rs2.2 billion in FY22 from Rs2.5 billion in FY21. Likewise, the net profit inched lower to Rs1.8 billion in FY22 from Rs2 billion in FY21, posting negative growth of 9% year-on-year.

In FY21, the earnings per share of the company stood at Rs3.62, which decreased to Rs3.07 in FY22.

About the company

Agha Steel Industries Limited was incorporated on November 19, 2013 as a private limited company. It was converted into a public limited company on April 7, 2015. The firm manufactures and sells steel bars, wire rods and billets.

Credit: Independent News Pakistan-WealthPk