Ismail Industries reports around 25% decline in profit

August 29, 2025 (MLN): Ismail Industries Limited (PSX: ISIL) has disclosed its financial results for the year ended June 30, 2025, posting a profit after tax of Rs3.7 billion, down 24.60% compared to Rs4.9bn in the previous year.

The Company has declared a final cash dividend of 50% (Rs. 5 per share) on its ordinary shares.

The company recorded sales of Rs140.07bn, up 6.65% from Rs131.33bn last year.

However, sales returns, discounts and direct expenses rose 21.82% to Rs3.7bn, while export rebate increased by 181.99% to Rs54.2m.

After accounting for sales tax of Rs13.85bn, net sales stood at Rs122.57bn, reflecting a 4.79% rise over Rs116.97bn in 2024.

Cost of sales increased 7.32% to Rs99.43bn, dragging gross profit down 4.86% to Rs23.14bn from Rs24.32bn.

Selling and distribution expenses climbed 11.38% to Rs9.94bn, while administrative expenses grew 5.11% to Rs2.08bn.

As a result, operating profit contracted 17.13% to Rs11.12bn.

Other operating expenses declined 12.09% to Rs773m, while other income decreased 7.63% to Rs1.36bn. Finance cost was lower by 9.98% at Rs7.24bn.

The company benefitted from higher contribution from its associated company, with share of profit rising 142.06% to Rs1.52bn.

Consequently, profit before levies and income tax stood at Rs5.99bn, down 9.27% from Rs6.6bn.

Levies increased 29.50% to Rs1.48bn, while taxation rose sharply by 47.27% to Rs805m, further impacting profitability.

Profit attributable to shareholders of the holding company came in at Rs4.21bn, down 19.05% from Rs5.2bn, while non-controlling interest losses widened 75.45% to Rs506m.

Earnings per share (EPS) were reported at Rs63.39, down 19.04% compared to Rs78.30 last year.

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