August 19, 2022 (MLN): International Steels Limited (ISL) has announced its financial performance for the year ended on June 30, 2022, as per which the profits after tax (PAT) of the company declined by 27.5% YoY to clock in at Rs5.41 billion (EPS: Rs12.44), against the profit of Rs7.47bn (EPS: Rs17.16) in FY21.
In conjunction with the results, the company announced a final cash dividend of Rs4.50 per share i.e., 45%. This is in addition to the Rs2 i.e., 20% interim cash dividend already announced and paid, making a total dividend of Rs6.50 per share i.e., 65% per share for the year ended June 30, 2022.
This decline in net income was due to a drop in gross margins amid low CRC-HRC spreads and the absence of inventory gains.
According to the financial statement sent to PSX, the net revenue of the company increased by 31% YoY due to higher domestic CRC/GI prices, however, a 40.4% YoY jump in the cost of sales reduced gross margins to 14% from 19%.
On the back of higher interest rates, the finance cost of the company almost surged by 63% YoY during FY22, standing at Rs1.32bn, affecting the financial health of the company.
On the tax front, the effective tax rate stood at 32% during FY22 against 27% in FY21.
|
Financial Results for the year ended June 30, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Revenue from contracts with customers |
91,423,698 |
69,796,240 |
30.99% |
|
Cost of Sales |
(79,042,389) |
(56,304,367) |
40.38% |
|
Gross profit |
12,381,309 |
13,491,873 |
-8.23% |
|
Selling and distribution expenses |
(1,611,628) |
(1,062,996) |
51.61% |
|
Administrative expenses |
(339,808) |
(361,519) |
-6.01% |
|
Finance costs |
(1,322,584) |
(811,931) |
62.89% |
|
Other operating charges |
(1,307,510) |
(1,276,659) |
2.42% |
|
Other income |
200,971 |
315,833 |
-36.37% |
|
Profit before taxation for the year |
8,000,750 |
10,294,601 |
-22.28% |
|
Taxation |
(2,588,560) |
(2,828,270) |
-8.48% |
|
Profit after taxation for the year |
5,412,190 |
7,466,331 |
-27.51% |
|
Earnings per share – basic and diluted (Rupees) |
12.44 |
17.16 |
-27.51% |
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Posted on:2022-08-19T11:10:00+05:00
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