{"id":10158,"date":"2025-07-22T14:55:29","date_gmt":"2025-07-22T09:55:29","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10158"},"modified":"2025-07-22T14:55:29","modified_gmt":"2025-07-22T09:55:29","slug":"amreli-steels-astl-still-in-the-red-amid-weak-construction-demand","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/amreli-steels-astl-still-in-the-red-amid-weak-construction-demand\/","title":{"rendered":"Amreli Steels (ASTL), still in the red amid weak construction demand"},"content":{"rendered":"\n

Amreli Steels (ASTL<\/a>) <\/strong>is set to post another quarterly loss of Rs788 million<\/strong> in 4QFY25 (April\u2013June), with a loss per share (LPS) of Rs2.65<\/strong>. This adds up to a full-year FY25 loss of Rs3.6 billion<\/strong>, highlighting ongoing struggles.<\/p>\n\n\n\n

What\u2019s going wrong?<\/h2>\n\n\n\n
    \n
  • Low capacity use<\/strong>: Production is running at less than 20%.<\/li>\n\n\n\n
  • Sales expected at Rs4.1 billion<\/strong>, down 24% YoY.<\/li>\n\n\n\n
  • Despite a slight recovery in exports, local demand stayed very weak.<\/li>\n\n\n\n
  • High finance costs<\/strong> continue to hurt earnings, even with falling interest rates.<\/li>\n<\/ul>\n\n\n\n

    Full-year performance snapshot:<\/h2>\n\n\n\n
      \n
    • Revenue<\/strong>: Rs17bn (\u219356% YoY)<\/li>\n\n\n\n
    • Gross Profit<\/strong>: Rs433mn (\u219382%)<\/li>\n\n\n\n
    • Net Loss<\/strong>: Rs3.6bn<\/li>\n\n\n\n
    • LPS<\/strong>: Rs12.28<\/li>\n\n\n\n
    • No dividend<\/strong> expected for FY25.<\/li>\n<\/ul>\n\n\n\n

      Outlook:<\/h2>\n\n\n\n

      The company\u2019s path to recovery depends on two things:<\/p>\n\n\n\n

        \n
      1. Loan restructuring<\/strong> to bring down finance costs.<\/li>\n\n\n\n
      2. A rebound in construction activity<\/strong>, which is still lagging behind.<\/li>\n<\/ol>\n\n\n\n

        Investment perspective:<\/h2>\n\n\n\n

        With high losses and no payout, ASTL remains a high-risk investment. However, analysts expect a turnaround in FY26 if demand picks up and borrowing costs ease. ASTL\u2019s forward P\/E is estimated at 8.7x FY26F<\/strong>, but no dividend is expected next year either.<\/p>\n\n\n\n

        Source: JS Global <\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

        Amreli Steels (ASTL) is set to post another quarterly loss of Rs788 million in 4QFY25 (April\u2013June), with a loss per share (LPS) of Rs2.65. This adds up to a full-year FY25 loss of Rs3.6 billion, highlighting ongoing struggles.<\/p>\n","protected":false},"author":9252,"featured_media":6453,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[215],"class_list":["post-10158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-astl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ASTL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ASTL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ASTL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/ASTL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10158","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10158"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10158\/revisions"}],"predecessor-version":[{"id":10159,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10158\/revisions\/10159"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6453"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10158"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}