February 03, 2022 (MLN): International Industries Limited (INIL) has announced its half-yearly financial results ended December 31, 2021, whereby the company has reported consolidated net profits of Rs3.9 billion (EPS: Rs16.54), only 1.42% higher than the same period a year ago.
The profitability was flat due to higher taxes and finance costs coupled with an increase in major expense head. However, the company’s sales revenue surged, driven by the higher international steel prices and pass-through impact of PKR depreciation.
Going by the financial results, topline showed a growth of 23% YoY to Rs57bn from Rs47bn, thanks to domestic and export sales. The company was able to capitalize on demand from special products from key high-value export destinations. However, the gross margins of the company remained flat at 15% due to an equal increase in the cost of sales during the said period.
On the costs front, the company witnessed an increase in its major expense heads as its selling and distribution cost went up by 91% YoY while its admin cost ballooned by 14% YoY.
Meanwhile, an increase in finance cost by 29% to Rs1.02bn due to policy rate hike restricted the company’s bottom line.
The other major highlight was a whopping 73%YoY increase in taxes that squeezed the net profits of the company.
Alongside financial results, the board of directors has announced an interim cash dividend for the half-year ended Dec 31, 2021, at Rs2 per share i.e., 20%.
| Consolidated Financial Results for the six months ended December 31, 2021 (Rupees in '000) | |||
|---|---|---|---|
|
|
Dec-21 |
Dec-20 |
% Change |
|
Revenue from contracts with customers |
57,431,394 |
46,727,640 |
22.91% |
|
Cost of sales |
(48,584,584) |
(39,896,019) |
21.78% |
|
Gross profit |
8,846,810 |
6,831,621 |
29.50% |
|
Selling and distribution expenses |
(1,643,728) |
(861,486) |
90.80% |
|
Administrative expenses |
(330,136) |
(288,741) |
14.34% |
|
Reversal of loss allowance on trade debts |
2,496 |
27,559 |
-90.94% |
|
Finance cost |
(1,015,913) |
(786,917) |
29.10% |
|
Other operating charges |
(636,594) |
(455,515) |
39.75% |
|
Other income |
448,307 |
479,331 |
-6.47% |
|
Share of profit/(loss) in equity accounted investee |
73,195 |
(23,234) |
– |
|
Profit before taxation |
5,744,437 |
4,922,618 |
16.69% |
|
Taxation |
(1,823,286) |
(1,056,424) |
72.59% |
|
Profit after taxation |
3,921,151 |
3,866,194 |
1.42% |
|
Earnings per share – basic and diluted (Rupees) |
16.54 |
20.13 |
-17.83% |
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