October 20, 2020 (MLN): International Steel Limited (ISL) has announced its financial results for the three months ended on September 30, 2020, as per results, the company’s profitability has substantially increased by 60.7% to stand at Rs 559 million (EPS: Rs 1.29) against net profits of Rs 347 million (EPS: Rs 0.80) of the same period last year.
The rise in profitability is mainly attributed to higher international CRC and Galvanized Steel prices.
During the period under review, the company’s gross profits went up by 12.77% YoY due to an increase in sales revenue (up by 35.7% YoY) amid higher demand from the 2/3 wheeler autos segment, as per a research report by Taurus Securities.
However, gross margins shrank from 10.69% to 8.88% due to depreciation of PKR against USD by 5%, revealed a report by Summit Capital.
The company witnessed a decrease in its major expense heads as distribution & selling expenses came down by 17% YoY from Rs 244 million to Rs 201 million. Moreover, administrative costs fell by 8.82% during the said period.
As per the financial statement issued by the company, the positive highlight includes a 61% decrease in finance costs on the back of a steep decline in interest rate.
Moreover, the company paid taxes worth Rs 298 million, while, it got a tax credit of Rs 46 million for the same period last year.
Financial Results for the quarter ended September 30, 2020 ('000 Rupees) | |||
|---|---|---|---|
| Sep-20 | Sep-19 | % Change |
Net Sales | 15,666,487 | 11,545,349 | 35.70% |
Cost of Sales | (14,274,689) | (10,311,143) | 38.44% |
Gross profit | 1,391,798 | 1,234,206 | 12.77% |
Administrative Expenses | (56,310) | (61,760) | -8.82% |
Selling and distribution expenses | (201,487) | (244,151) | -17.47% |
Finance costs | (258,924) | (667,214) | -61.19% |
Other operating charges | (68,818) | (24,369) | 182.40% |
Other income | 51,132 | 64,533 | -20.77% |
Profit before taxation for the year | 857,391 | 301,245 | 184.62% |
Taxation | (298,281) | 46,681 | – |
Profit after taxation for the year | 559,110 | 347,926 | 60.70% |
Earnings per share – basic and diluted (Rupees) | 1.29 | 0.80 | 61.25% |
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