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13 May 2019 17:24:00
Management Discussion and Analysis Quarter 1 Ending 31 Mar 2019
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                Management Discussion and Analysis

Company name                             : BANGSAPHAN BARMILL PUBLIC COMPANY 
Year                                     : 2019
Quarter                                  : Quarter 1
Ending                                   : 31-Mar-2019
Note                                     :
Income Statements Analysis, Comparison of Quarter 1 of 2019 VS Quarter 1 of 2018
    Revenue from sales in Q1 of 2019 was at Baht 600.3 million, increased by 5.6% 
yoy, due to the increase in sales volume from 29,831 MT in Q1 of 2018 to 33,691
MT in Q1 of 2019 or increased by 13% yoy. The steel price has continually
declined in Q1 of 2019 as a result of the market mechanism and the world steel
bar price.
    In the first quarter of 2019, the Company's gross profit margin was at 2.4% 
comparing to gross profit margin of 4.6% 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 selling price of steel bar had
decreased at the higher rate than the cost of the billet. 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 2019 and 2018 were at Baht 9.8 million and Baht 
6.9 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 increased from the same period of last year.
    As a result, the Company had the net loss of Baht 43,466 in Q1 of 2019, 
comparing to the net profit of Baht 10.8 million in the same period last year.

Analysis of Statement of Financial Position, for the Quarter Ended 31 March 2019
    As at 31 March 2019, the Company's total assets, Baht 1,973.6 million, were in 
the same level as Baht 1,959.3 million at the end of 2018. Cash on Hand and
Trade Receivables were increased while Inventory was reduced from the end of
2018. The Company's average periods of trade receivable and inventory held were
at 23 days of revenue from sale and 3 days of cost of the goods sold,
    Total liabilities as at 31 March 2019, Baht 57.7 million, were decreased from 
those of Baht 43.4 million at end of 2018. The major decrease came the increase
in VAT Payable in Q1 of 2019.
The Company's liquidity ratio (Current Assets / Current Liabilities) as at 31 
March 2019 was still high at 22.9 times, comparing to 31.2 times at end of 2018.
The decrease in this ratio was due to the increase in Other Liabilities in Q1
of 2019.
     Moreover, the Company's debt-to-equity ratios as at 31 March 2019 and 31 
December 2018 were still low at 0.03 and 0.02 time, respectively. These were
because the Company funded most of capital from shareholders' equity instead of
long term loan.
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