reports
- Team AKD Research
MUGHAL_4QFY23 Result Review-Surprise dividend announced, (AKD Off the ...
Mughal Iron & Steel Industries Limited announced its 4QFY23 results, where the company posted an earnings of PkR834mn (EPS: PkR2.48), marking a 36% decrease compared to PkR1.31bn (EPS: PkR3.89) last quarter. This decline is majorly attributable to an increase in finance cost compared to last quarter, clocking in at PkR1.5bn (up by 49%QoQ). The company also announced a cash dividend of PKR3.2/sh whereas the dividend for FY22 was PkR3/sh. Topline for the quarter increased by 10%QoQ to PkR18....
- IMS Research Team
Mughal Iron & Steel Industries: 3QFY23 Result Review - Strong gross ma...
MUGHAL has posted 3QFY23 NPAT of PKR1.3bn (EPS: PKR3.89), up 56% YoY and 10% QoQ. The result came in well above our projected NPAT of PKR0.4bn (EPS: PKR1.32), due to: higher-than-expected gross margins. This result takes 9MFY23 NPAT to PKR2.6bn (EPS: PKR7.89), down 39% YoY. KEY TAKEAWAYS FROM 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR17.2bn, up 14% YoY and 25% QoQ – in line with our expectations. The QoQ increase is despite the decline in sales volumes, where multiple price hikes and...
- Shahmir Malik
Amreli Steel: 3QFY23 Review - Higher-than-expected GMs lead to earning...
ASTL has posted NPAT of PKR476mn (EPS: PKR1.60) in 3QFY23 versus a loss of PKR389mn (LPS: PKR1.31) in the last quarter. The result came in higher than our expected EPS of PKR0.71, where major deviation stemmed from higher-than-expected GMs and lower finance cost. KEY TAKEAWAYS FROM 3QFY23 RESULT INCLUDE: * Revenue clocked in at PKR11.7bn, down 12% QoQ and 27% YoY. Decline in revenue is mainly led by sluggish demand amid lower construction activity and PSDP allocation. We expected net sales ...
- IMS Research Team
Pakistan Steel – 3QFY23 Result Previews
LOWER DEMAND AND INVENTORY LOSSES TO DENT PROFITABILITY * IMS Steel Universe is expected to post a cumulative NPAT of c.PKR1.1bn in 3QFY23, compared to losses of PKR0.3bn in the last quarter. Higher steel product prices and inventory gains amid rupee devaluation are expected to uplift quarterly earnings. * Multiple price hikes of rebar and CRC are likely to increase sector gross margins by 6ppt to 12%. However, depressed demand, import restrictions and rising energy cost may pose a ris...
- IMS Research Team
Amreli Steel: 2QFY23 Review: Inventory losses and higher finance cost ...
ASTL has posted net loss of PKR389mn (LPS: PKR1.31) in 2QFY23 from EPS of PKR2.03 SPLY. The loss can be attributed to massive rise in COGS due to stock pile up and elevated finance cost. This result wiped out the profits from last quarter and takes 1HFY23 into NLAT of PKR185mn (LPS: PKR0.62) from EPS of PKR7.80 in 1HFY22. KEY TAKEAWAYS FROM 2QFY23 RESULT INCLUDE: * Revenue clocked in at PKR13.2bn down 11% YoY, but up 44% QoQ in 2QFY23. The sequential increase in revenue is led by improvement...
MUGHAL_FY22 Analyst Briefing Takeaways, (AKD Daily, Nov 30, 2022)
MUGHAL: FY22 Analyst Briefing Takeaways To recall, company posted consolidated PAT of PkR5.4bn (EPS: PkR16.12) for FY22 against PAT of PkR3.4bn (EPS: PkR10.22) SPLY, up 58% YoY. The main markets of the company are domestic housing sector both in urban (rebar) and rural areas (girder), and the international market for copper ingots, which is majorly exported to China. Company has been continuously involved in efficient supply chain management through various initiatives e.g. strong retail net...
ASTL_1QFY23 Analyst Briefing Takeaways, (AKD Off the Analyst's Desk No...
Amreli Steels Limited (ASTL) held its analyst briefing earlier today, wherein the following was discussed: To recall, the company posted PAT of PkR1.3bn (EPS: PkR4.46) for FY22, lower by 3%YoY compared to the same period last year. ASTL’s Net sales for the year were PkR58.1bn, higher by 48%YoY. Despite declining volumes, the risen revenue was majorly due to higher retention prices. However, gross margins for the quarter remained under pressure due to sky rocketing scrap prices, peaking a...
- Abdul Ghani Mianoor
Mughal Iron & Steel Industries: 1QFY23 Review - Earnings beat on GMs a...
MUGHAL posted a profit of PKR872mn (EPS: PKR2.60) for 1QFY23, down 48% YoY and 5% QoQ. Profits are above our expected EPS of PKR1.43, where the major deviation stemmed from higher-than-expected gross margins and other income. Despite softer demand and surging interest rate, the company was able to produce a decent result. Key Observations: * Revenue has clocked in at PKR14.1bn, flat QoQ and down 26% YoY, lower than our expected revenue of PKR15bn. Lower-than-expected volumes majorly led to t...
- Ali Aziz Soorty
Amreli Steel: 1QFY23 Review: Earnings beat on GMs and taxation
ASTL has posted NPAT of PKR204mn (EPS: PKR0.69) in 1QFY23, down 71% YoY, while halving QoQ. The 1Q result has come in higher than our projected EPS of PKR0.33, where the variance emanated from higher-than-expected gross margins and low effective tax rate. KEY TAKEAWAYS FROM 1QFY23 RESULT INCLUDE: * Revenue has clocked in at PKR9.8bn (down 17% YoY), significantly lower than our expected revenue of PKR12bn. The decline in revenues is majorly attributed to lower-than-expected volumetric sales. ...
- Ali Aziz Soorty
Pakistan Steel: Lower demand and inventory losses to dent profitabilit...
* IMS Steel Universe is expected to post cumulative NPAT of c.PKR1.6bn in 1QFY23, down 55% QoQ (-82% YoY), amid lower margins, inventory & exchange losses, and elevated finance cost. * We expect gross margins of the IMS Steel Universe to remain flat QoQ, but down 3.8ppt YoY due to (i) lower offtake due to floods and elevated construction costs, (ii) elevated power and fuel cost, and (iii) inventory losses from flat steel due to decline in HRC-CRC spreads in case of ISL. * IMS Steel...
- Ali Aziz Soorty
Mughal Iron & Steel Industries: 4QFY22 Review: Tax credit and low inte...
MUGHAL posted a profit of PKR1.0bn (EPS: PKR3.10) for 4QFY22, up from PKR0.8bn (EPS: PKR2.50) last quarter. This has translated FY22 NPAT to PKR5.4bn (EPS: PKR16.12), c.13% up from SPLY. The announcement is against our earnings expectation of PKR2.25/sh, where the major deviation stemmed from lower than expected tax rate (28.7%) and finance cost. Despite a dampened demand outlook and surging interest rate the company was able to produce an impressive result, albeit opting out of a final cash ...
- Ali Aziz Soorty
Amreli Steel: 4QFY22 review – Lower volumes and margins dragged to los...
ASTL posted a loss of PKR509mn (LPS: PKR1.71) for 4QFY22, down from a NPAT of PKR531mn (EPS: PKR1.79) last quarter. This has taken FY22 NPAT to PKR1.3bn (EPS: PKR4.61), c.3% down from SPLY. The announcement is against our positive earnings expectation of PKR1.23/sh, with major deviation stemming from a variance in volumetric sales, PKR devaluation affected scrap costs, and blistering electricity cost related Fuel Cost Adjustments (FCA). Recent adverse monsoon spells have put ASTL to reduce pr...
- Ali Aziz Soorty
Pakistan Steel: 4Q preview – Profits to decelerate amid supertax, lowe...
IMS Steel Universe is expected to post cumulative NPAT of c.PKR1.6bn in 4QFY22, down 34% QoQ, as slower volumes amid elevated construction cost and one-off tax implications will drag profits. We expect gross margins of long steel companies will hold up due to i) sequential increase in rebar prices, and ii) mild softening in international scrap prices. Similarly, flat steel margins are likely to improve sequentially, due to relaying of costs and high inventory levels. Despite the series of pri...
Pakistan Metal_Global metal prices are in place, (AKD Daily, Jun 16, 2...
AKD Daily Pakistan Metal: Global metal prices are in place International aluminum/zinc/lead/nickel prices have started mean reversion, contracting 35/19/17/48% from their peak in Mar-Apr’22, depicting signs of metal commodities upcycle losing stream. Moreover, scrap has also accompanied these industrial metals where it has lost 45% from its peak of US$700/ton to US$385/ton which bodes well for local long steel manufacturers (MUGHAL, ASTL, AGHA, and ITTEFAQ). On the local front, rebar pric...
MUGHAL & ASTL_Projections incorporating macro-developments, (AKD Daily...
AKD Daily MUGHAL & ASTL: Projections incorporating macro-developments · We revisit our investment case for MUGHAL and ASTL where we revised our target prices to PkR94/sh and PkR35/sh from PKR140/sh and PkR57/sh for MUGHAL and ASTL, respectively. Incorporating RF of 15.5% and PkR/US$ of 198/210 in FY23/24F. · We expect the earnings outlook for MUGHAL and ASTL to remain dreary in FY23 with the companies expected to see a volumetric decline of 10-12%YoY to 280-340K tons in rebar/girder dispatches f...
Pakistan Steel_Scrap down 22%MoM in May’22, amid cheaper Russian impor...
Scrap down 22%MoM in May’22, amid cheaper Russian importsInternational scrap prices have contracted 22%MoM in May’22, currently hoveringaround US$487/ton compared to FYTD/CYTD avg. of US$508/553/ton. Following periodsof high volatility, scrap prices have declined rapidly amid abundant cheap Russian importsavailable at European ports resulting in dampening prices. India has raised duties on export of major steel products including iron ore to curb downsoaring steel production costs to curtail en...
- Ali Aziz Soorty
Mughal Iron & Steel Industries: 3QFY22 review – weak ferrous margins l...
MUGHAL has posted a NPAT of PKR0.8bn (EPS: PKR2.50) for 3QFY22, down 24% yoy and 54% qoq. This takes 9MFY22 NPAT to PKR4.4bn (EPS: PKR13.02), up 74% yoy. The 3Q result has come in substantially lower than our projected EPS of PKR4.31, where the major variance has emanated from (i) depressed local sales volume, and (ii) lower-than-expected gross margins. KEY TAKEAWAYS FROM 3QFY22 RESULT: * Revenues have clocked in at PKR15.1bn, up c.46% yoy but down c.16% qoq. It is lower than our expectation...
MUGHAL & NML_9MFY22E Result Previews,
AKD Daily MUGHAL & NML: 9MFY22E Result Previews MUGHAL - earnings to clock in at 4.95/sh: MUGHAL is slated to announce its 3QFY22 result (28th Apr'22), where we expect the company to register NPAT of PkR1.7bn (EPS: PkR4.95) vs PkR1.1bn (EPS: PkR3.31) in 3QFY21. This will take 9MFY22 earnings to PkR5.1bn (EPS: PkR15.48) against PkR2.5bn (EPS: PkR7.47) in 9MFY21. The earnings are primarily expected to emanate from 94.4%YoY/11.7%QoQ growth in topline largely on account of higher rebar (+7%QoQ) an...
- Ali Aziz Soorty
Amreli Steel: 3QFY22 review – depleted margins hurt profitability
ASTL has posted NPAT of PKR531mn (EPS: PKR1.79) for 3QFY22, which is up 6% yoy but down c.12% qoq. This has taken 9MFY22 NPAT to PKR1.8bn (EPS: PKR6.18), almost double the NPAT of PKR9.29mn (EPS: PKR3.12) in SPLY. The 3Q result has come in lower than our projected EPS of PKR2.09, where the variance emanated from lower-than-expected gross margins. KEY TAKEAWAYS FROM 3QFY22 RESULT INCLUDE: * Revenue has clocked in at c.PKR15.9bn (up c.63% yoy), beating our expected revenue of PKR14.3bn, where ...
- Ali Aziz Soorty
Pakistan Steel: 3Q22 preview – Profitability to decelerate amid slower...
* IMS Steel Universe to post cumulative NPAT of c.PKR3.2bn in 3QFY22, down c.14% qoq, this is due to slower volumes amid elevated construction cost and seasonal slowdown. * We expect that gross margins of long steel companies will hold strong due to (i) sequential increase in rebar prices, and (ii) slight let off in international scrap prices. However, flat steel margins are likely to decline qoq due to contraction in CRC-HRC spreads internationally. * Despite the series of price h...
Unfortunately, this report is not available for the investor type or country you selected.
Report is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.