ASTL_FY23 Result Review – Excessive tax charges erode earnings ,(AKD Off the Analyst's Desk Sep 08, 2023)
AKD, Off the Analyst's Desk ASTL_FY23 Result Review – Excessive tax charges erode earnings Amreli Steels Limited announced its 4QFY23 results, where the company posted a LAT of PkR969mn (LPS: PkR3.26), marking a 304% decrease when compared to a PAT of PkR476mn (EPS: PkR1.60) last quarter. This decrease is mostly attributed to a 1048% increase in tax charges and a 9% increase in finance costs QoQ. The company has not announced any dividends. • Topline for the quarter fell by 7%QoQ to PkR10.8bn, while reflecting a 19% decline on yearly basis. The said decline is possibly due to decrease in volumes, taking into account falling LSM (FY23: down 14.93%YoY) and imposed LC restrictions. • Given regressed sold volumes, GMs also fell to 13% in 4QFY23 vs. 18% in 3QFY23. • On the operating front, distribution costs rose by 7% QoQ to PkR263mn and administrative expenses increased by 17% QoQ to stand at PkR225mn. Finance costs saw a slight increase of 9%QoQ to end at PkR1,1bn, introspecting a possible increase in short term borrowings. • Taxes saw a massive jump of 1048% to end at PkR814mn, attributable to retrospective implementation of super tax and a possible deferred tax charge (ET: 524% vs. 13% for 3QFY23). AKD Research
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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