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International Steels Ltd’s profits slide down by 16% due to rising expenses

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 October 16, 2018 (MLN): International Steels Limited (ISL)’s overall profits for the first quarter of current fiscal year, have suffered a decline of 16% owing to uninhibited rise in cost of sales and overall expenses.

As narrated in the report on the company’s financial earnings, ISL experienced a decent increase of Rs.523.5 million in net sales, but due to soaring cost of sales, gross profits came down by 8.5% as compared to the corresponding period of last year.

While overall expenses surged, a 200% rise in non-core income and 23% lower tax provisions provided relief to the company.

However, the collective impact of all the components pulled down the profits from Rs.1 billion to Rs.841.3 million on a year-on-year basis.

ISL reported its basic and diluted earnings per share at Rs.1.93 per share, down from Rs.2.31 per share.

Financial Results for the first quarter ended September 30th 2018 ('000 Rupees)

 

Sep-18

Sep-17

% Change

Net Sales

                     11,231,542

                     10,708,086

4.89%

Cost of Sales

                     (9,612,454)

                     (8,939,132)

7.53%

Gross profit

                       1,619,088

                       1,768,954

-8.47%

Selling and distribution expenses

                        (109,629)

                        (103,688)

5.73%

Administrative Expenses

                           (65,870)

                           (53,987)

22.01%

Finance costs

                        (285,357)

                        (112,880)

152.80%

Other operating charges

                           (94,836)

                        (127,288)

-25.49%

Other income

                             78,252

                             25,948

201.57%

Profit before taxation

                       1,141,648

                       1,397,059

-18.28%

Taxation

                        (300,305)

                        (393,714)

-23.73%

Profit after taxation for the period

                           841,343

                       1,003,345

-16.15%

Earnings per share – basic and diluted (Rupees)

                                  1.93

                                  2.31

-16.45%

 

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Posted on: 2018-10-16T15:14:00+05:00

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