Hifsa Raja

Crescent Steel & Allied Products Limited (CSAP) sales decreased 11% year-on-year to Rs5.9 million in the first nine months of the previous fiscal year 2021-22 (9MFY22). The company had sales of Rs6.6 million over the corresponding period of FY21. The gross profit saw a massive decline of 79% to settle at Rs131,000, dropping from Rs626,000 year-on-year. Similarly, loss-before-taxation plunged to Rs177,000 from Rs867,000, down 120% year-on-year.

The loss-after-tax was Rs98,000 in 9MFY22 compared to Rs703,000 in 9MFY21, showing a negative growth of 114%. During this period, loss per share stood at Rs1.27 from earning per share of Rs9.06 previously, reports WealthPK.

Directors, their spouse(s) and minor children owned 1.6% of the total shares of the company till June 30, 2021. Associated companies, undertakings and related parties owned 21% shares, NIT and ICP 2.10%, banks, development financial institutions, non-banking financial institutions 13.51%, insurance companies 3.52%, modarabas and mutual funds 1%, other companies 18.07%, and general public (local) 39.09%, (foreign) owned 0.04% shares, respectively.

Financial performance

During the fiscal year 2020-21, the company generated sales of Rs8.49 million over Rs4.47 million in 2019-20, registering an increase of 90%.  The gross profit for FY21 was Rs496,000, up a mammoth 876% over just Rs50,000 in FY20. Operating profit for FY21, showing a growth of 233%, settled at Rs637,000, rising from Rs191,000 in FY20. Profit-before-tax for FY21 was Rs426,000 compared to a loss of Rs117,000 in FY20. Similarly, profit-after-tax for FY21 was Rs351,000 compared to a loss of Rs17,000 in FY20.

Earnings per share stood at Rs1.85 in 2019, but dipped to minus Rs0.22 in 2020. However, EPS surged to Rs4.53 in 2021 and Rs4.72 in 2022.

Profit or loss over the years

The company’s profitability – gross profit ratio and operating profit margin to sales – remained robust in 2016 with some declines in 2017, but then the profits started declining. In 2019 and 2020, the profitability remained depressed, but improved in 2021.

Crescent Steel and Allied Products Limited was incorporated in Pakistan on August 1, 1983, as a public limited company under the Companies Act, 1913 (now Companies Act, 2017).

The company operates five segments – steel, cotton, investment and infrastructure development, energy and billet segment.

Credit: Independent News Pakistan-WealthPk