August 19, 2019 (MLN): International Steels Limited has reported net profits of Rs. 2.6 billion (EPS: Rs. 6.12) for the year ended June 30, 2019, which is around 39% lower than the earnings of last year.
The Board of Directors of the company also recommended a payment of 15% final cash dividend i.e. Rs. 1.50 per share in addition to the interim dividend of 15% already paid, making a total dividend of 30% i.e. Rs. 3 per share for the said period.
Regrettably, the company’s performance for the year was slightly worse than what the market had expected.
The decline in company’s profit was mainly due to lower than expected volumetric sales during the last quarter. This can be attributed to the increase in prices of Cold Rolled Coil and Hot Dipped Galvanized Coil due to PKR devaluation.
On top of that, the finance costs for the year surged by a massive 139% due to increase in interest rates.
Nevertheless, fall in income tax expense by 29% provided much needed relief to the company.
Profit and loss account for the year ended June 30, 2019 (Rupees'000)
