ISL reports 77% drop in profit amid revenue decline

January 29, 2025 (MLN): International Steels Limited's (PSX: ISL) profit after tax fell 77.3% YoY to Rs534 million [EPS: Rs1.23] for the six months ended December 31, 2024, as compared to a profit of Rs2.35 billion [EPS: Rs5.41] in the same period last year (SPLY).

Going by the results made available by the company on the Pakistan Stock Exchange (PSX), the company's top line went down by 20% YoY to Rs31.8bn as compared to Rs39.7bn in SPLY.

The cost of sales also fell 14.53% YoY but was not enough to offset the sales decline, worsening the gross profit by 55% YoY to Rs2.4bn in 6MFY25.

The gross margins inched down to 7% as compared to 13% in SPLY.

During the period under review, other income inched down by 0.67% YoY to stand at Rs149.45m in as compared to Rs150.4m in SPLY.

On the expense side, selling and administrative costs were cut by 12.57% and 2.60%, respectively, indicating some cost-control efforts.

However, finance costs surged by 50.60%, putting additional pressure on profitability.

The company also benefited from a 78.49% reduction in other operating charges which partially cushioned the earnings decline.

The pre-tax profit plunged 76.46% to Rs826m, while tax expenses dropped by 71.70%, helping to limit the overall decline in net profit.

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