August 27, 2021 (MLN) International Industries Limited (INIL) has reported a massive financial turnaround, posting net profits of Rs8.7bn for FY21, compared to the net loss of Rs320.37mn incurred in the previous fiscal year due to the economic shock triggered by the onset of the COVID-19 pandemic.
In line with profits, the earnings per share of the company clocked in at Rs41.38/sh as opposed to the net loss of Rs4.6/sh.
In addition, the company also announced a cash dividend of Rs6.50 per share i.e., 65%. This is in addition to the Rs3.50 i.e., 35% interim cash dividend already announced and paid, making a total dividend of Rs10 i.e., 100% per share for the year ended June 30, 2021.
The rebound, driven by a strong steel demand that was witnessed in 1HFY21, translated into a significant improvement in turnover and profitability.
The net revenues of the company showed a missive growth of 50.4% YoY to Rs98.7bn from Rs65.65bn, as growth was witnessed in all major product lines, reflecting a recovery in large-scale manufacturing and broader economic gains post-lockdown. Export sales revenue also increased during the period, as the Company was able to capitalize on tight global allocation of raw materials in order to achieve record growth numbers.
A massive jump in revenues combined with a 35.8% YoY surge in cost of sales, resulted in a 9ppt increase in gross margin from 9% to 18%.
On the costs front, the company witnessed an increase in its major expense heads as its selling and distribution cost went up by 47.5% YoY while its Admin cost soared by 35.4% YoY. However, the impact was counterbalanced by a substantial decline in finance cost by 55.8% or Rs1.98bn on the back of lower prevailing benchmark rates.
As a result, cash flow coverage indicators have depicted improvement.
Financial Results for the Year ended June 30th, 2021 (Rupees in '000)
Cost of sales
Selling and distribution expenses
Impairment reversal on trade debts
Other operating charges
Share of profit in equity accounted investee – net of tax
(Loss) / Profit before taxation
(Loss) / Profit after taxation for the year
(Loss)/Earnings per share – basic and diluted (Rupees)
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