ISL’s profit drops by 35% YoY, announces 55% dividend

August 22, 2023 (MLN): International Steels Limited (PSX: ISL) 's profitability declined significantly by 34.98% YoY in FY23, clocking in its profit after tax at Rs3.52bn [EPS: Rs8.09] compared to a profit of Rs5.41bn [EPS: Rs12.44] in the same period last year (SPLY).

Along with the results, the company announced a final cash dividend of Rs2.5 per share i.e. 25%.

This is in addition to the Rs3 i.e. 30% interim cash dividend already announced and paid, making a total dividend of Rs5.5 per share i.e. 55% per share for the year ended June 30, 2023.

Going by the results, the company's top line decreased by 16.05% YoY to Rs76.75bn as compared to Rs91.42bn in SPLY.

The cost of sales fell by 16.32% YoY but was not enough to offset the sales decline, which worsened the gross profit by 14.33% YoY to Rs10.61bn in FY23.

During the period under review, other income fell by 22.48% YoY to stand at Rs155.8 million in FY23 as compared to Rs200.97m in SPLY.

On the expense side, the company observed a fall in selling and distribution expenses by 36.20% YoY while other expenses rose by 41.71% YoY to clock in at Rs389.06m and Rs1.92bn respectively during the review period.

The company’s finance costs inflated by 71.19% YoY and stood at Rs2.26bn as compared to Rs1.32bn in FY23, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs1.67bn against the Rs2.59bn paid in the corresponding period of last year, depicting a fall of 35.38% YoY.

Amount in thousand except for EPS

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