Amreli Steels expects 10% growth in FY22
The management of Amreli Steels Limited (ASTL) is expecting 10 per cent growth with 400k tonnes of rebars in FY22 and is anticipating to maintain 12 to 13 per cent average gross margins during the period.
Additionally, the company is hopeful that the higher volumetric growth coupled with the stability in prices will cushion the margins in the forthcoming periods.
In the first-half ended December 31, 2021, ASTL sold 183,243 tonnes of bars, including prime bars. Similarly, the overall volume during the second quarter of FY22 stood at 95,239 tonnes with an upside of 8 per cent from 88,004 tonnes in the first quarter of FY22.
This surge in volumes is mainly accredited to the demand revival from retail, corporate, and government and PFC segments.
Similarly, the clientele mix of the ASTL stands at retail (66 per cent in the first half of FY22 against 65 per cent in the first half of FY21), corporate (19 per cent in the first half of FY22 versus 23 per cent in the first half of FY21) and the government and PFC (14 per cent in the first half FY22 versus 12 per cent in the first half of FY21).
Concurrently, province-wise sales include Sindh, 61 per cent in the first half of FY22 against 57 per cent in the first half of FY21; Punjab, 29 per cent in the first half of FY22 versus 33 per cent in the first half of FY21; Balochistan, 5 per cent in the first half of FY22 versus 6 per cent in the first half of FY21; and KP, 5 per cent in the first half of FY22 against 3 per cent in the first half of FY21.
According to the management, the average scrap price (CNF) during the period under review rose to $531/tonne, up 76 per cent, compared with $302/tonne in the same period of FY21. Also, the scrap cost jumped to Rs98k/tonne during the first half of FY22.
Further, the billet cost of goods manufactured (COGM) during the first half of FY22 increased to Rs119k/tonne, compared with Rs76k/ton last year. Also, the rebar COGM during the first half of FY22 rose to Rs131k/tonne, compared with Rs88k/tonne last year.
Amreli Steels Limited was incorporated in 1984 as a private limited company and converted into a public unquoted company in 2009.
The company was enlisted on the Pakistan Stock Exchange in December 2015 and is mainly engaged in manufacturing and sale of steel rebars and billets.
Pak Datacom implements 5-year plan
Pak Datacom Limited has implemented the 5-year Strategic Master Plan that has been geared at improving both the top-line and the bottom-line of the company from the ground up.
The company commenced its commercial activities from July 1, 1994 and is principally engaged in setting up, operating and maintaining a network of data communication and serving the needs of the customers.
The company believes given pragmatic reorganisation taking place within, and the various initiatives of the government of Pakistan to promote the ICT sector as a whole, such as the reduction of minimum tax from 8 per cent to 3 per cent, the classification of telecommunication companies as industrial undertakings so that they are able to reclaim advance tax on the import of capital equipment and plant machinery, and the reduction in the federal excise duty from 17 per cent to 16 per cent, the company’s outlook for the future remains positive and stable with increasing shareholder value in the times to come.
During the quarter ended September 30, 2021, the company recorded an increase of 81.99 per cent to its revenue in comparison with the same period last year.
The revenues of the company as on September 30, 2021 stood at Rs293 million, compared with Rs161 million on September 30, 2020.
Pak Datacom Ltd specialises in providing end-to-end data communication solutions through satellite-based SCPC VSAT, DAMA, iDirect, Terrestrial networks and radio.
Pak Datacom is a subsidiary of Telecom Foundation, which has an equity share of 55 per cent, whereas 45 per cent investment in the company is made by the general public and foreign investors.
Established in November 1991, Telecom Foundation is a self-supporting entity with assets exceeding Rs1 billion and is the holding the company of Pak Datacom Ltd.
Century Papers sales stand at Rs17.915 billion
Century Papers and Board Mills has availed SBP’s Temporary Economic Refinance (TERF) loan facility from different banks for upgradation of paper and board machines, cogeneration plants and auxiliaries relating thereto. As on the balance-sheet date, the company has utilised the major chunk of the financing by retiring letters of credit established under the facility.
The company aims at finishing work on most of the projects by the end of this year. Moreover, Century has collaborated with foreign consultants to use their artificial intelligence tools for quicker and precise analysis of data and to improve machine operations to yield better productivity.
The management is confident that promising growth in demand for the paper and paperboard products coupled with enhanced production capacities will enable the company maximise the sale volumes and improve the market share, despite the growing domestic competition.
On the flip side, soaring key input costs in the wake of higher global commodity prices, depreciation of the rupee and rising indigenous inflation are mounting pressures on margins.
A well thought pricing strategy is in place to recover the cost escalations in line with the market conditions and prices are being adjusted to achieve better profit margins during the second half of the year in the prevailing scenario of significant cost upsurge.
Century Paper and Board Mills Limited was incorporated in 1984. It is engaged in manufacturing and marketing of paper, board and related products.
The company posted a gross profit of Rs2.297 billion for the period July-December 2021 (first half of FY22), compared with Rs2.815 billion during the corresponding period of the last year.
The gross profit margin for the period under review declined owing to elevated raw materials and fuel prices coupled with upward movement of exchange rate, resulting in a significant increase in the cost of production, which could only be recouped partially through necessary adjustments in selling prices in line with the market conditions.
