August 23, 2022 (MLN): International Industries Ltd. (INIL) announced its financial results for FY22 wherein the company posted a consolidated profit of Rs4.73 billion (EPS: Rs18.38), showing a decrease of 46% YoY compared to net profits of Rs8.72bn (EPS: Rs41.38) in FY21.
Along with the results, the board of directors of the company recommended a final cash dividend of Rs6 per share i.e., 60%. This is in addition to the Rs2 i.e., 20% interim cash dividend already announced and paid, making a total dividend of Rs8 i.e. 80% per share for the year ended June 30, 2022.
The decline in profitability was mainly due to lower margins and higher finance costs.
According to the financial statement sent to PSX, net sales went up by around 23% YoY to Rs121.7bn on the back of higher product prices which offset the impact of a contraction in sales volume.
Despite higher revenue, the gross margins of the company shrank to 13% from 18% in FY21 which might be due to the lower CRC-HRC spread and the absence of inventory gains in the flat steel segment.
On the costs front, INIL’s selling and distribution expenses swelled by 76.5% YoY to Rs4.45bn in FY22 while administrative costs dropped by 7.6% YoY.
Notably, the finance costs during FY22 surged by 60% YoY to Rs2.5bn as the central bank increased interest rates on the back of growing inflation. The higher financial charges also affected the net income of the company.
On the tax front, the effective tax rate of the company stood at 45% against 26% in FY21.
|
Financial Results for the Year ended June 30th, 2022 (Rupees in '000) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Revenue from contracts with customers |
121,740,071 |
98,745,775 |
23.29% |
|
Cost of sales |
(105,364,174) |
(81,178,237) |
29.79% |
|
Gross profit |
16,375,897 |
17,567,538 |
-6.78% |
|
Selling and distribution expenses |
(4,456,860) |
(2,524,761) |
76.53% |
|
Administrative expenses |
(730,782) |
(791,370) |
-7.66% |
|
(Charge)/ reversal of loss allowance on trade debts |
(38,394) |
42,768 |
– |
|
Finance cost |
(2,504,160) |
(1,566,622) |
59.84% |
|
Other operating charges |
(816,729) |
(1,466,241) |
-44.30% |
|
Other income |
574,756 |
492,806 |
16.63% |
|
Share of profit in equity accounted investee – net of tax |
165,629 |
34,084 |
385.94% |
|
Profit before taxation |
8,569,357 |
11,788,202 |
-27.31% |
|
Taxation |
(3,835,009) |
(3,070,796) |
24.89% |
|
Profit after taxation for the year |
4,734,348 |
8,717,406 |
-45.69% |
|
Earnings per share – basic and diluted (Rupees) |
18.38 |
41.38 |
-55.58% |
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Posted on:2022-08-23T12:03:13+05:00
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