International Steels Limited (ISL), today posted six month and quarterly results for the period ended December 31st, 2017 and beat almost all industry expectations. ISL performed much better than the industry expectation as local industry expands at an aggressive pace to satiate the local demand and cap imports in the steel sector.
Total PAT rose by 88% beating forecasts of Rs. 1.9 billion to clock in at Rs. 2.181 billion. Net sales for the period also rose by a more than 45%, falling at Rs. 22.189 billion.
Steel Sector is expected to remain buoyant by healthy demand from key end-use industries such as automobiles, consumer durables and construction. Analysts forecast the demand for steel segment to grow at a healthy pace of 10% per annum over the next 5 years. ISL net sales increase of 45.79% to cross the 22 billion rupees mark during last six months only second that opinion as local demand picks up in the wake of CPEC related projects.
Stock Analysts have reiterated their stance as ISL being the top preferred company in the Steel Scrips. With an increase of 88.1% in EPS, the company reported earnings of Rupees 5.02 per share during the half year.
|
Unconsolidated Profit and Loss Account – Six Months Ended December 31st, 2017 |
|||
|---|---|---|---|
|
Key Financials |
2017 |
2016 |
% Change |
|
Amounts in PKR ‘000 |
|||
|
Net Sales |
22,189,671 |
15,220,084 |
45.79% |
|
Cost of Sales |
18,417,178 |
12,386,709 |
48.68% |
|
Gross Profit |
3,772,493 |
2,833,375 |
33.14% |
|
Selling and Distribution Expenses |
206,207 |
152,043 |
35.62% |
|
Administrative Expenses |
116,879 |
88,725 |
31.73% |
|
Financial Charges |
232,316 |
236,759 |
-1.88% |
|
Other Income |
75,055 |
53,968 |
39.07% |
|
Profit before Taxation |
3,040,118 |
2,205,971 |
37.81% |
|
Taxation – Net |
858,575 |
1,046,231 |
-17.94% |
|
Profit/(Loss) for the period |
2,181,543 |
1,159,740 |
88.11% |
|
EPS – Basic & diluted |
5.02 |
2.67 |
88.01% |
Company release on Earnings Report can be accessed here.
