January 30, 2024 (MLN): International Industries Limited (PSX: INIL) experienced a massive surge in its earnings for 1HFY24, clocking in its profit after tax at Rs2.47 billion [EPS: Rs10.76], compared to a profit of Rs127.24m [EPS: Rs0.5] in the same period last year (SPLY).
Driven by the earnings growth, the company has declared an interim cash dividend of Rs2 per share, representing 20%, for the half-year ended December 31, 2023.
Analyzing the income statement reveals that the company's turnover marked an increase of 19.58% YoY to Rs54.34bn as compared to Rs45.44bn in SPLY.
Accordingly, the cost of sales rose by 15.85% YoY but remained proportionately lower than the sales increase. As a result, the gross profit of the company improved by 47.85% YoY to Rs7.83bn in 1HFY24.
The expense section shows that INIL observed a rise in Sales and distribution expenses by 65.11% YoY and other expenses by 58.91% YoY to clock in at Rs1.68bn and Rs461.21m respectively during the review period.
Likewise, the administrative costs grew by 41.94% YoY to Rs479.49m during the review period.
The company experienced a decline in its other income, which was reported at Rs105.48m, marking a 76.58% YoY decrease.
On the other hand, the share of profit in equity accounted investee witnessed an increase of 29.82% to be reported at Rs49.06m in 1HFY24.
As other income declined and expenses increased, the significant reduction in INIL's finance cost emerged as the primary factor contributing to its improved earnings.
The company’s finance costs contracted by 53.43% YoY and stood at Rs1.2bn as compared to Rs2.58bn in 1HFY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs1.65bn against the Rs600.52m paid in the corresponding period of last year, depicting an increase of 2.74x YoY.
| Consolidated Financial Results for six months ended 31 December 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 54,337,907 | 45,442,289 | 19.58% |
| Cost of sales | (46,506,334) | (40,145,250) | 15.85% |
| Gross Profit | 7,831,573 | 5,297,039 | 47.85% |
| Sales and distribution expenses | (1,682,587) | (1,019,073) | 65.11% |
| Administrative expenses | (479,494) | (337,824) | 41.94% |
| Share of profit in equity accounted investee | 58,081 | 44,740 | 29.82% |
| (Charge) / reversal of loss allowance on trade debts | (49,055) | (2,417) | -% |
| Other Income | 105,483 | 450,462 | -76.58% |
| Other operating charges | (461,210) | (1,122,365) | -58.91% |
| Finance cost | (1,202,843) | (2,582,811) | -53.43% |
| Profit before taxation | 4,119,948 | 727,751 | 466.12% |
| Taxation | (1,645,502.00) | (600,516.00) | – |
| Net profit | 2,474,446 | 127,237 | – |
Amount in thousands except for EPS
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Posted on: 2024-01-30T14:52:13+05:00
