January 27, 2020 (MLN): International Steels Limited has declared net earnings of Rs.465.9 million with an Earning per share of Rs. 1.07 for the half-year ended on December 31, 2019, i.e. nearly 73% lower than the earnings of the same period last year.
The decline in net profits is mainly attributable to the normalization of the tax rate and an increase in finance cost.
During the period, the topline of the company declined marginally by 1.62%YoY, on account of lower volumes. In addition, despite lower raw material prices, the gross margins declined 3 ppts to 9% from 12% on the back of PKR devaluation.
Moreover, the Company witnessed a massive rise in finance cost from Rs 591.8 million to Rs 1.34 billion mainly due to rise in running finance for higher working capital requirements and higher borrowing cost.
With regards to the company’s major expense head, admin expenses remained stagnant while distribution cost surged by 62%YoY.
Financial Results for the Half-year ended December 31, 2019 ('000 Rupees)
