Earning Preview: Lower volumetric sales, higher finance cost to weigh on ISL’s earnings

By MG News | August 16, 2019 at 03:43 PM GMT+05:00

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August 16, 2019 (MLN): The meeting of the Board of Directors of International Steels Limited (ISL) is Scheduled to take place on Monday i.e. August 19, 2019 to review and discuss the financial results of the company for the year ended on June 30^th 2019.

According to the projections put forward by various research houses, the company is expected to report Profit-after-Tax (PAT) of over Rs. 3.12 billion, as compared to PAT of Rs. 4.36 billion. This suggests that the company is expected to observe approx. 29% decline in its earnings compared to last year.

Brokerage House	Profit-After-Tax (PAT) for FY19	EPS (Earnings per share)	YoY % Change in PAT

Taurus Securities Limited	Rs 3.16 billion	Rs 7.26	-27.7%
Ismail Iqbal Securities	Rs 3.12 billion	Rs 7.17	-29 %
Multiline Securities Limited	Rs 3.13 billion	Rs 7.19	-28%

The expected decline in company’s profit is mainly attributed to lower volumetric sales during the last quarter. As the company increased its prices of Cold Rolled Coil (CRC) and Hot Dipped Galvanized Coil (HDGC) due to PKR devaluation which are expected to impact demand negatively.

Furthermore, higher finance cost due to increase in borrowings for higher working capital requirements and hike in interest rate during FY19 is also expected to play a major role in declining company’s earnings.

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