Amreli Steel Limited Faces Major Setback with PKR 4.8 Billion Loss

Amreli Steel Limited, Pakistan’s largest billet manufacturer, has reported a significant loss of PKR 4.8 billion in the fourth quarter of fiscal year 2024. This massive loss effectively wiped out the company’s lifetime profits, as per its official filing with the Pakistan Stock Exchange (PSX).

Share Price Drop After Announcement

Following the announcement of the Q4 results, Amreli Steel’s share price dropped by PKR 2.22 Billion, representing a 9.68% decline. The market reaction reflects the severity of the financial blow faced by the company.

Revenue Hits a Historic Low

Amreli Steel generated a total revenue of PKR 5.3 billion during the quarter, marking its lowest since June 2022. This is nearly half of what the company earned in the same period last year, further underscoring the challenges faced by the steel manufacturer in a struggling market environment.

First Gross Loss in Company History

For the first time in its history, Amreli Steel recorded a gross loss. Even though the company’s interest income rose by 11.8% to PKR 1.2 billion during the quarter, it was insufficient to offset the significant operating losses. The reported PKR 4.8 billion loss completely erased all previously accumulated profits, a startling development for the industry giant.

Advanced Manufacturing Capabilities

Despite the current financial struggles, Amreli Steel operates two advanced re-rolling plants in S.I.T.E. Karachi and Dhabeji. These plants utilize some of the most modern hot-rolling technologies available, with production capacities of 180,000 metric tons and 425,000 metric tons of rebars per year.

Additionally, the company’s melt shop, located in the industrial zone of Dhabeji, Port Qasim, spans 65 acres and boasts a nameplate capacity of 600,000 metric tons annually. Despite its current financial downturn, these cutting-edge facilities position Amreli Steel as a key player in the region.