Engineering: 4QFY23: Lower demand to dent profitability – By Taurus Research

<p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">We expect TSL&rsquo;s long steel universe to post a PAT of ~PKR 1Bn, up ~56% due to the low base effect amid imposition of super tax during 4QFY22. However, on a sequential basis, PAT during 4QFY23 is expected to decline significantly i.e. ~52%QoQ due to squeezed demand owing to inflationary pressure coupled with lower rebar prices during the outgoing quarter.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">In addition, higher finance cost and the imposition of increased super tax is expected to further dent the bottom line in 4QFY23.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">Further, during 4QFY23 local rebar prices declined ~13%QoQ to an aver...