April 20, 2021 (MLN): International Steels Limited (ISL), has unveiled its financial performance during 9MFY21, wherein the company posted a whopping 7.86x YoY increase in net profits to Rs5.15bn (EPS: 11.84/sh) compared to Rs655.5mn (EPS: 1.51/sh) in the corresponding period last year.
The remarkable surge in the company’s profits was largely due to robust demand from the automobile and construction sector post-lock-down, higher revenues, lower finance costs, and inventory gains.
According to the financial statement issued, the company witnessed a 32.28% YoY increase in net revenues on the back of rising price and volume of CRC and HDGC. The gross margin was also improved to 18% against 9% in 9MFY20, mainly due to an increase in the spread between HRC-CRC.
The bottom-line of the company further supported by a significant reduction in finance cost from Rs1.74bn to Rs595.9mn (down by 66% YoY) due to a steep decline in interest rate.
The company also earned Rs364.3mn income from other sources, compared to the loss of Rs32.47mn, which further boosted the company’s profitability.
On the tax front, the company incurred tax expenses of Rs2.167bn which was 239x higher than the taxes of Rs9mn paid in the corresponding period year, this put a check on ISL’s profitability.
|
Financial Results for the nine months ended March 31, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Net Sales |
50,917,815 |
38,492,840 |
32.28% |
|
Cost of Sales |
(41,865,151) |
(35,093,053) |
19.30% |
|
Gross profit |
9,052,664 |
3,399,787 |
166.27% |
|
Selling and distribution expenses |
(615,538) |
(731,892) |
-15.90% |
|
Administrative expenses |
(276,143) |
(198,144) |
39.36% |
|
Finance costs |
(595,932) |
(1,746,490) |
-65.88% |
|
Other operating charges/income-net |
(609,386) |
(26,158) |
2229.64% |
|
Other income |
364,336 |
(32,479) |
|
|
Profit before taxation for the year |
7,320,001 |
664,624 |
1001.37% |
|
Taxation |
(2,167,865) |
(9,071) |
23798.85% |
|
Profit after taxation for the year |
5,152,136 |
655,553 |
685.92% |
|
Earnings per share – basic and diluted (Rupees) |
11.84 |
1.51 |
684.11% |
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