Quarterly Report March 31, 2024
Financial Report for the Quarter ended March 31, 2024
TABLE OF CONTENTS
Contents
Company Information
Directors' Review Report
Condensed Interim Statement of Financial Position
Condensed Interim Statement of profit or Loss and Other Comprehensive Income
Condensed Interim statement of Cash Flows
Condensed Interim statement of Changes in Equity
Notes to the Condensed Interim Financial Statements
Financial Report for the Quarter ended March 31, 2024
CORPORATE INFORMATION | |
BOARD OF DIRECTORS | |
Mrs. Shazia Agha | Chairperson, Non-Executive Director |
Mr. Hussain Iqbal Agha | Chief Executive Officer |
Mr. Raza Agha | Executive Director |
Mr. Asif Ahmad | Non-Executive Director |
Mr. Muhammad Shahid | Non-Executive Director |
Mr. Muhammad Asif | Independent Director |
Mr. Saeed Mirza | Independent Director |
AUDIT COMMITTEE | |
Mr. Saeed Mirza | Chairman |
Mr. Asif Ahmad | Member |
Mr. Muhammad Asif | Member |
HUMAN RESOURCE & RUMENERATION COMMITTEE | |
Mrs. Shazia Agha | Chairperson |
Mr. Muhammad Shahid | Member |
Mr. Raza Agha | Member |
CHIEF FINANCIAL OFFICER
Mr. Kamran Ahmed
COMPANY SECRETARY
Mr. Muhammad Muneeb Khan
HEAD OF INTERNAL AUDIT
Mr. Umar Irshad
EXTERNAL AUDITORS
Reanda Haroon Zakaria & Company Chartered Accountants
Progressive Plaza, Baumont Road, Karachi, Pakistan
Financial Report for the Quarter ended March 31, 2024
SHARE REGISTRAR
CDC Share Registrar Services Limited
CDC House, Main Shahrah-e-Faisal, Karachi, Pakistan
LEGAL ADVISOR
Asad Mehmood
Uni Shopping Center, Abdullah Haroon Road, Karachi, Pakistan
BANKERS | |||
Bank Al Habib Limited | | Faysal Bank Limited | |
| Askari Bank Limited | Habib Metro Bank Limited | |
| Habib Bank Limited | MCB Islamic Bank Limited | |
Bank Al Falah Limited | | MCB Bank Limited | |
| Meezan Bank Limited | Dubai Islamic Bank Limited | |
Bank Islami Pakistan Limited | The Bank of Khyber | ||
| United Bank Limited | National Bank of Pakistan | |
| JS Bank Limited | Allied Islamic Bank Limited | |
| Samba Bank Limited | | Bank of Punjab |
- Soneri Bank Limited
REGSITERED OFFICE
Plot No. N.W.I.Z/1/P-133,(SP-6),D-2, Port Qasim Authority, Karachi, Pakistan PTCL# 021-34156219-21
CORPORATE OFFICE
Office 801 & 804, 8th Floor, Emerald Tower, G-19
- Talwar, Block 5, Clifton, Karachi, Pakistan UAN # 021-111-111-2442Corporate@aghasteel.com
SYMBOL AT PAKISTAN STOCK EXCHANGE
AGHA
WEBSITE INFORMATION
www.aghasteel.com
Financial Report for the Quarter ended March 31, 2024
DIRECTORS' REVIEW REPORT
The Directors of your Company are pleased to present the Financial Statements for the Third Quarter ended March 31, 2024.
MACRO-ECONOMIC CHALLENGES
The Economy faced significant challenges in the third quarter of FY 2024, with high inflation and widening fiscal deficit. However, positive developments including IMF funding, improved exports, and rising foreign exchange reserves offered the potential for a rebound in 2024. The government's continued commitment to energy, fiscal, and external sector reforms is anticipated, yet potential fiscal slippages and delayed reforms pose substantial risks. While economic stabilization is expected in the later stages 2024, the pace of recovery hinges on the successful implementation of planned reforms and sustained external funding assurances.
MANAGEMENT'S RESPONSE
The management is actively engaged in a thorough review of our operations, aiming to identify areas for improvement and implement strategic adjustments to address the issues contributing to the current loss. Our focus is on stabilizing operations, optimizing costs, and exploring avenues for recovery.
FINANCIAL PERFORMANCE
Your Company showed a decline in revenue during the current period, the Company recorded net sales revenue of Rs. 2,647 million during the 03rd Quarter as compared to Rs. 5,689 million in the corresponding period. The gross loss stood at Rs. (585) million as compared to gross profit of Rs. 1,373 million in the corresponding period. . The Net loss after tax stood at Rs. (1,815) million as compared to net profit after tax of Rs. 303 million in the corresponding period.
Key financial highlights of the company is as follows:
Nine Months | Nine Months | Three Months | Three Months |
ended | ended | ended March | ended March 31, |
March 31, 2024 | March 31, 2023 | 31, 2024 | 2023 |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) |
(Rs. in million)
Financial Report for the Quarter ended March 31, 2024
Sales - net | 11,991 | 15,452 | 2,647 | 5,689 |
Gross Profit/(Loss) | 1,224 | 3,620 | (585) | 1,373 |
Operating Profit/(Loss) | (2,648) | 772 | (2,098) | 379 |
Profit /(Loss) before | (2,100) | 356 | ||
tax | (2,620) | 969 | ||
Profit/(Loss) after tax | (2,034) | 705 | (1,815) | 303 |
Earnings per share | ||||
Basic (in Rupees) | (3.36) | 1.17 | (3.00) | 0.50 |
Diluted (in Rupees) | (3.36) | 1.17 | (3.00) | 0.50 |
EARNINGS PER SHARE
Basic and Diluted Earnings per share for the period ended March 31st, 2024 was Rs. (3.00) as compared with Rs. 0.50 per share in the corresponding period.
FUTURE PROSPECTS
Our strategic initiatives include a comprehensive review of our product offerings, exploring partnerships and collaborations, and adopting innovative technologies to enhance our operational efficiency. We are also evaluating market trends and customer preferences to align our offerings with the evolving demands of the industry.
ACKNOWLEDGEMENT
The Board would like to place on record the all stakeholders, Securities and Exchange Commission of Pakistan, Pakistan Stock Exchange, State Bank of Pakistan, banks/financial Institutions, especially its customers as well as the vendors and suppliers, for their continued commitment and support to the Company. The Board would also like to thank all staff members of the Company in performing their tasks with diligence and commitment.
Financial Report for the Quarter ended March 31, 2024
FOR AND ON BEHALF OF THE BOARD OF DIRECTORS
________________ | __________________ |
Hussain Iqbal Agha | Raza Iqbal Agha |
Chief Executive Officer | Director |
Karachi: April 29, 2024 |
Financial Report for the Quarter ended March 31, 2024
AGHA STEEL INDUSTRIES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT MARCH 31, 2024
March 31 | June 30 | ||
2024 | 2023 | ||
(Un-audited) | (Audited) | ||
ASSETS | - - - - Rupees in '000'- - - - | ||
Non-Current Assets | |||
Property, plant and equipment | 6 | 22,590,018 | 21,277,380 |
Intangible asset | 39,250 | 42,390 | |
Long term deposits and receivable | 7 | 414,967 | 449,463 |
23,044,235 | 21,769,233 | ||
Current Assets | |||
Stores, spare parts and loose tools | 2,904,197 | 2,360,897 | |
Stock-in-trade | 8 | 4,821,751 | 10,439,863 |
Trade and other receivables | 9 | 5,880,536 | 4,948,795 |
Loans and advances | 10 | 2,354,153 | 1,815,346 |
Deposits | 12,500 | 17,632 | |
Tax refunds due from Government | 588,966 | 540,924 | |
Cash and bank balances | 388,412 | 87,295 | |
16,950,515 | 20,210,752 | ||
Total Assets | 39,994,750 | 41,979,985 | |
EQUITY AND LIABILITIES | |||
Share Capital and Reserves | |||
Authorized Capital | 11 | 9,250,000 | 6,250,000 |
Share Capital | |||
Issued, subscribed and paid up capital | 6,048,791 | 6,048,791 | |
Capital reserve | 2,126,687 | 2,126,687 | |
Revenue Reserve | |||
Unappropriated profit | 6,360,770 | 8,394,972 | |
Total Shareholders' Equity | 14,536,248 | 16,570,450 | |
Non-Current Liabilities | |||
Long term borrowings | 12 | 7,735,001 | 4,223,940 |
Advance against preference shares | 13 | 750,000 | 500,000 |
Lease liabilities | 90,237 | 108,721 | |
Deferred liability | 249,971 | 1,063,819 | |
8,825,209 | 5,896,480 | ||
Current Liabilities | |||
Trade and other payables | 14 | 639,688 | 829,386 |
Accrued markup | 1,524,497 | 807,704 | |
Short term borrowings | 15 | 14,243,421 | 13,728,859 |
Current portion of non-current liabilities | 16 | 225,687 | 4,147,106 |
16,633,293 | 19,513,055 | ||
Contingencies and Commitments | 17 | ||
Total Capital and Liabilities | 39,994,750 | 41,979,985 |
The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.
___________________ | ___________________ | |
Chief Executive | Chief Financial Officer | Director |
AGHA STEEL INDUSTRIES LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE
INCOME (UN-AUDITED)
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024
Nine Months | Quarter Ended | ||||
March 31, | March 31, | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | - - - - - - - - - - - (Rupees in '000') - - - - - - - - - - - | ||||
Turnover - gross | 14,149,923 | 18,107,187 | 3,147,760 | 6,684,370 | |
Sales tax | (2,158,463) | (2,655,167) | (500,964) | (995,442) | |
Turnover - net | 11,991,460 | 15,452,020 | 2,646,796 | 5,688,928 | |
Cost of sales | (10,767,366) | (11,831,721) | (3,231,543) | (4,316,385) | |
Gross profit /(Loss) | 1,224,094 | 3,620,299 | (584,747) | 1,372,543 | |
Administrative expenses | (241,198) | (247,800) | (70,272) | (104,422) | |
Selling and distribution costs | (251,411) | (338,476) | (60,522) | (136,875) | |
Finance costs | (3,379,887) | (2,262,505) | (1,382,708) | (752,318) | |
(3,872,496) | (2,848,781) | (1,513,502) | (993,615) | ||
Operating (Loss) / profit | (2,648,402) | 771,518 | (2,098,249) | 378,928 | |
Other expenses | (229,365) | (163,701) | (78,492) | (102,012) | |
Other income | 257,346 | 361,420 | 76,270 | 78,602 | |
(Loss) / Profit before taxation | (2,620,421) | 969,237 | (2,100,471) | 355,518 | |
Taxation - net | 586,219 | (264,247) | 285,309 | (52,674) | |
(Loss) / Profit after taxation | (2,034,202) | 704,990 | (1,815,162) | 302,844 | |
Other comprehensive (Loss)/ income for the peri | - | - | - | - | |
Total comprehensive (Loss) / | income | (2,034,202) | 704,990 | (1,815,162) | 302,844 |
for the period | |||||
Earnings per share | |||||
Basic and diluted - Rupees | 18 | (3.36) | 1.17 | (3.00) | 0.50 |
The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.
___________________ | ___________________ | ___________________ |
Chief Executive | Chief Financial Officer | Director |
AGHA STEEL INDUSTRIES LIMITED
CONDENSED INTERIM STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS PERIOD ENDED MARCH 31, 2024
March 31, | |||
2024 | 2023 | ||
Un-Audited | |||
A. CASH FLOWS FROM OPERATING ACTIVITIES | Note | - - - - Rupees in '000'- - - - | |
Profit before taxation | (2,620,421) | 969,237 | |
Adjustments for: | |||
Depreciation | 6.1 | 318,178 | 332,252 |
Amortization | 3,140 | 3,140 | |
Impairment loss on trade receivables - net | 9 | 229,115 | 39,649 |
Finance cost | 3,369,785 | 2,254,786 | |
Amortization of government grant | - | (1,367) | |
Finance lease markup | 10,102 | 7,719 | |
Workers welfare fund | - | 52,164 | |
Workers profit participation fund | 250 | 21,887 | |
Exchange loss - net | - | 50,000 | |
Cash generated from operations before working capital changes | 1,310,149 | 3,729,467 | |
Changes in working capital | |||
(Increase) / decrease in current assets | |||
Stores, spare parts and loose tools | (543,300) | (725,463) | |
Stock-in-trade | 8 | 5,618,112 | 3,494,848 |
Trade and other receivables | 9 | (1,160,856) | (428,123) |
Loans and advances | 10 | (538,807) | 141,294 |
Deposits | 5,132 | 9,472 | |
3,380,281 | 2,492,028 | ||
(Decrease) / increase in current liabilities | |||
Trade and other payables | (137,004) | (330,898) | |
Net cash generated from operations | 4,553,426 | 5,890,597 | |
Taxes paid - net | (275,672) | (186,375) | |
Workers profit participation fund paid | (52,944) | - | |
Financial charges paid | (2,663,094) | (2,431,985) | |
Net cash generated from operating activities | 1,561,716 | 3,272,237 | |
B. CASH FLOWS FROM INVESTING ACTIVITIES | |||
Long term deposits and receivable recovered - net | 7 | 34,496 | 32,144 |
Additions in capital work in progress - net | 6.2 | (1,865,781) | (1,186,742) |
Damage (disposals) in property, plant and equipment | 6.1 | 673,801 | |
Additions in property, plant and equipment | 6.1 | (438,836) | (258,688) |
Net cash used in investing activities | (1,596,320) | (1,413,287) | |
C. CASH FLOWS FROM FINANCING ACTIVITIES | |||
Repayments of long-term borrowings - net | 12 | (410,358) | 80,539 |
Advance received against shares | 13 | 250,000 | - |
Lease rentals paid | (18,484) | (20,845) | |
Receipts / (Repayments) of short-term borrowings - net | 15 | 514,562 | (1,902,154) |
Net cash generated from / (used in) financing activities | 335,721 | (1,842,460) | |
Net decrease in cash and cash equivalents (A+B+C) | 301,117 | 16,490 | |
Cash and cash equivalents at the beginning of the period | 87,295 | 215,063 | |
Cash and cash equivalents at the end of the period | 388,412 | 231,553 |
The annexed notes from 1 to 22 form an integral part of this condensed interim financial statements.
___________________ | ___________________ | |
Chief Executive | Chief Financial Officer | Director |
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Agha Steel Industries Ltd. published this content on 30 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2024 06:45:53 UTC.