April 15, 2020 (MLN): International Steel Limited (ISL) has announced its financial results for the nine months ended on March 31, 2020 as per results, the company’s profitability has substantially declined by 72% to stand at Rs 655 million (EPS: Rs 1.51) against net profits of Rs 2.35 billion (EPS: Rs 5.42) of the same period last year.
The decline in profitability is mainly attributed to lower demand for the flat steel from allied industries, higher input costs, upsurge in distribution expenses and colossal increase in finance cost to support working capital.
During the period under review, the company’s gross profits plunged by 26% YoY due to a decline in sales revenue despite a 7% decrease in the cost of sales, shrinking gross margins from 11% to 8%.
On the expense front, selling and distribution cost of the company reached to Rs 731 million, up by 56% YoY owing to augmented distribution activities while administrative expenses remained flat to Rs 198 million.
In addition, other income plunged by 65% YoY to Rs 43 million. The substantial growth was recorded in the finance cost of the company which surged by around 73% YoY to Rs 1.74 billion.
More notably, the tax expenses of the company plummeted by 98% YoY, providing the cushion to its earnings.
|
Financial Results for the nine months ended March 31, 2020 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-20 |
Mar-19 |
% Change |
|
Net Sales |
38,492,840 |
42,360,017 |
-9.13% |
|
Cost of Sales |
(35,093,053) |
(37,740,378) |
-7.01% |
|
Gross profit |
3,399,787 |
4,619,639 |
-26.41% |
|
Selling and distribution expenses |
(731,892) |
(470,411) |
55.59% |
|
Administrative expenses |
(198,144) |
(197,824) |
0.16% |
|
|
(930,036) |
(668,235) |
39.18%
|
|
Finance costs |
(1,746,490) |
(1,009,812) |
72.95% |
|
Other operating charges |
(102,074) |
(248,234) |
-58.88% |
|
|
(1,848,564) |
(1,258,046) |
46.94%
|
|
Other income |
43,437 |
124,783 |
-65.19% |
|
Profit before taxation for the year |
664,624 |
2,818,141 |
-76.42% |
|
Taxation |
(9,071) |
(458,390) |
-98.02% |
|
Profit after taxation |
655,553 |
2,359,751 |
-72.22% |
|
Earnings per share – basic and diluted (Rupees) |
1.51 |
5.42 |
-72.14% |
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