INIL’s profit drops almost half in 1HFY25 to Rs231.72mn

January 31, 2025 (MLN): International Industries Limited (PSX: INIL) reported a significant decline in profitability for the half-year ended December 31, 2024 (1HFY25), with a profit after tax of Rs231.72 million, marking a sharp 90.64% decrease compared to Rs2.47 billion in the same period last year.

According to the company’s unconsolidated (unaudited) financial results, INIL’s earnings per share (EPS) also declined from Rs10.76 to a negative Rs0.01 per share.

The company’s revenue from contracts with customers stood at Rs43.7bn, reflecting a 19.57% drop from Rs54.3bn reported in 1HFY24.

The decline in revenue was accompanied by a 14.25% reduction in the cost of sales, which amounted to Rs39.87bn, compared to Rs46.5bn last year.

Consequently, the company’s gross profit fell by 51.15% to Rs3.82bn, compared to Rs7.83bn in the corresponding period of the previous year.

Operating profit declined sharply by 68.96% to Rs1.74bn from Rs5,62bn.

This was driven by lower revenues, despite a reduction in selling and distribution expenses by 2.51% and administrative expenses by 5%.

The reversal of loss allowance on trade debts provided some relief, amounting to Rs14.9mn compared to a charge of Rs49.05mn last year.

Finance costs saw a decline of 24.55%, reaching Rs907.52mn from Rs1.2bn in the previous period.

Other operating charges dropped significantly by 79.27% to Rs95.61mn from Rs461.21mn.

Meanwhile, other income increased by 11.76% to Rs117.89mn, up from Rs105.48mn.

However, the share of loss in equity-accounted investees stood at Rs32.62mn, reversing from a profit of Rs58.08mn in the prior period.

Profit before income tax stood at Rs826.71mn, a stark 79.93% decline from Rs4.11bn recorded in the same period last year.

The company’s income tax expense decreased by 63.84%, amounting to Rs594.9mn compared to Rs1.64bn in 1HFY24.

Copyright Mettis Link News