Pakistan-based Aisha Steel (ASML) produced 202,164mt steel in 2019, down by 2pc from 217,370mt in 2018. Sales volume was down by 5pc at 205,456mt compared to 217,043mt in 2018.
ASML’s profitability was hit by decline in sales due mainly from lower domestic consumption amid political uncertainty and steep devaluation of Pakistani Rupee (PKR). The company’s gross margin dipped as input costs and borrowing cost rose on account of PKR devaluation, according to the company release. Value of PKR against US$ declined by 9.5pc since Jan 2019.
In 2019, ASML posted a net revenue of PKR20,231mn ($131.17mn), up by 7pc from PKR18,904mn in 2018. Loss before tax was PKR412mn in 2019 from a profit of PKR 1,916mn in 2018 as the company paid taxes for import of plant and machinery for its expansion project. However, the company posted a profit of PKR254mn by utilising tax credits from the expansion project. In 2018, ASML reported a profit of PKR1,284mn. In 2017, ASML commenced an expansion project to increase its steel capacity to 700,000mt/yr from 220,000mt.