January 29, 2024 (MLN): International Steels Limited (PSX: ISL) experienced a massive rise in its earnings for the six months ended December 31, 2023 as the profit after tax clocked in at Rs2.35 billion [EPS: Rs5.41], compared to a profit of Rs60.87m [EPS: Rs0.14] in the same period last year (SPLY).
In addition to the financial results, the Board of Directors (BoD) of the company has declared an interim cash dividend of Rs2.5 per share.
Going by the results, the company's revenue from contracts with customers increased by 17.13% YoY to Rs39.74bn as compared to Rs33.93bn in SPLY.
Similarly, the cost to sell also witnessed a rise of 11.23% YoY to Rs34.43bn. As the increase in sales was greater than proportionate to the rise in cost to sell, the gross profit improved by 78.59% YoY to Rs5.31bn in 1HFY24.
On the expense section, the company observed a surge in Selling and distribution expenses by 6.38x YoY and other expenses by 64.27% YoY to clock in at Rs947.07m and Rs398.52m respectively during the review period.
However, other operating charges recorded a substantial drop of 64.27% YoY and were reported at Rs398.52m during the review period.
Other income of the company grew 2.43x YoY to stand at Rs150.46m in 1HFY24 as compared to Rs62.01m in SPLY.
Further relief came to ISL's earnings due to a reduction in finance costs, which stood at Rs371.29m compared to Rs1.65bn in 1HFY23, reflecting a decline of 77.52% YoY.
On the tax front, the company incurred a tax expense of Rs1.16bn, against a tax rebate of Rs92.38m incurred in the SPLY.
| Condensed Interim Financial Results for 6 months ended 31 Dec 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Revenue from contracts with customers | 39,739,065 | 33,925,882 | 17.13% |
| Cost of sales | (34,425,591) | (30,950,594) | 11.23% |
| Gross Profit | 5,313,474 | 2,975,288 | 78.59% |
| Selling and distribution expenses | (947,074) | (148,478) | 537.85% |
| Administrative expenses | (235,962) | (152,846) | 54.38% |
| Other Income | 150,462 | 62,012 | 142.63% |
| Other operating charges | (398,524) | (1,115,515) | -64.27% |
| Finance cost | (371,287) | (1,651,976) | -77.52% |
| Profit before taxation | 3,511,089 | (31,515) | – |
| Taxation | (1,158,524) | 92,380 | – |
| Net profit for the period | 2,352,565 | 60,865 | – |
| Basic earnings/ (loss) per share | 5.41 | 0.14 | – |
Amount in thousands except for EPS
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Posted on: 2024-01-29T17:32:17+05:00
