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07 May 2018 17:52:00
Management Discussion and Analysis Quarter 1 Ending 31 Mar 2018
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                Management Discussion and Analysis

Company name                             : BANGSAPHAN BARMILL PUBLIC COMPANY 
Year                                     : 2018
Quarter                                  : Quarter 1
Ending                                   : 31-Mar-2018
Note                                     :
The Company would like to disclose the Financial Statements (reviewed) for the 
Quarter ended 31 March 2018 with management explanation as following.
Income Statements Analysis, Comparison of Quarter 1 of 2018 VS Quarter 1 of 2017
Revenue from sales in Q1 of 2018 was at Baht 568.4 million, decreased by 14% 
yoy, due to the decrease in sales volume as a result of the slowdown in
construction industry. The steel price has continually decreased in Q1 of 2018.
Sales volume in Q1 this year of 29,831 MT was 24% lower than the sales volume in
the same period last year. Meanwhile, the average selling price was in the
downward trend as a result of the market mechanism and the world steel bar
In the first quarter of 2018, the Company's gross profit margin was at 4.7% 
comparing to gross profit margin of 13.2% in the same period last year. This
derived from the reduction of the spread between selling price and cost of the
major raw material, steel billet, since the cost of billet increased at the
higher rate than the selling price of steel bar. Cost of steel billet generally
accounts 85-90% of total cost of the goods sold, therefore, the decrease in
Metal Spread has the major impact to the gross margin.
The selling expenses in Q1 of 2018 and 2017 were at Baht 6.9 million and Baht 
12.8 million, respectively. The major expense was the transportation cost which
directly related with the sales amount at the approximate rate of 1-2%. The
administrative expenses which most of them represented the employee expenses
were slightly decreased from the same period of last year.
As a result, the Company had the net income of Baht 10.8 million in Q1 of 2018, 
comparing to the net profit of Baht 40.8 million in the same period last year.
Analysis of Statement of Financial Position, for the Quarter Ended 31 March 2018
As at 31 March 2018, the Company's total assets, Baht 2,010.7 million, were in 
the same level as Baht 2,012.3 million at the end of 2017. Cash on Hand and
Trade Receivables were increased while Inventory was reduced from the end of
2017. The Company's average periods of trade receivable and inventory held were
at 53 days of revenue from sale and 3 days of cost of the goods sold,
Total liabilities as at 31 March 2018, Baht 60.6 million, were decreased from 
those of Baht 72.8 million at end of 2017. The major decrease came from Trade
Payable as a result of the reduction in the purchase of billet in Q1 of 2018.
The Company's liquidity ratio (Current Assets / Current Liabilities) as at 31 
March 2018 was still at a high rate, 21.6 times, due to the decrease of trade
payable. This ratio as at 31 December 2017 was at 17.5 times. Moreover, the
Company's debt-to-equity ratios as at 31 March 2018 and 31 December 2017 were
still low at 0.03 and 0.04 time, respectively. These were because the Company
funded most of capital from shareholders' equity instead of long term loan.
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