October 14, 2019 (MLN): International Steels Limited is slated to announce its financial results for the quarter ended September 30, 2019 on Tuesday.
The projections set forth by various research houses suggest that the company is likely to endure a decline in its net earnings by roughly 50% as compared to the results of same quarter last year.
Project results for the quarter ended September 30, 2019
PAT (PKR’ Million)
Going by the analysis done by these research houses, the volumetric sales of the company is expected to stumble on the back of local demand contraction, owing to the high quality steel products being supplied by its competitor Aisha Steel Mills (ASL).
In addition, the entry of new steel manufacturer, namely Hadeed Pakistan and Siddique Sons, seems to be posing a serious threat to the market shares of ISL and ASL.
The sales revenue is also expected to receive a crushing blow from the company’s decision to lower prices of HRC. On the contrary, the company shall receive some respite in the form of rise in the prices of HDGC and CRC, due to devaluation of local currency.
Besides, the finance cost is expected to escalate due to increase in working capital requirements as well as higher interest rates on borrowings.
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