April 21, 2022 (MLN): International Steels Limited (ISL), a market leader in CRC and GI sheets has announced its financial performance for the nine months ended on March 31, 2021, as per which the profits after tax (PAT) of the company expanded by 4% YoY to clock in at Rs5.35 billion, compared to Rs5.1bn in 9MFY21.
Given this, the company’s earnings per share moved up from Rs11.84 per share to Rs12.31 per share.
The growth in earnings were mainly attributable to strong demand from the automobile and construction sector; High CRC-HRC spread; full impact passed on to consumers amidst rising raw material prices; and inventory gains.
The net revenue of the company increased by 38.57%YoY mainly due to a positive shift in economic activities and rebound in sectors like autos, pipes, and appliances. However, the gross margins clocked in at 13% during the review period compared to 18% in 9MFY21.
On the costs front, distribution and other expenses have come at Rs742.5 million and Rs755 million, up by 21% and 24% YoY respectively. Higher distribution expenses can be explained by greater export proceeds. Meanwhile, other expenses declined by 13% YoY to Rs239.5mn.
Due to increase in short-term debt given higher rise working capital requirement amid increase in interest rates, the finance cost of the company surged significantly by 52% YoY during 9MFY22 and stood at Rs905.6mn.
On the tax front, the effective rate of the company clocked in at 24% compared to 30% in 1Q of FY21.
|
Financial Results for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Revenue from contracts with customers |
70,557,394 |
50,917,815 |
38.57% |
|
Cost of Sales |
(61,043,302) |
(41,865,151) |
45.81% |
|
Gross profit |
9,514,092 |
9,052,664 |
5.10% |
|
Selling and distribution expenses |
(742,502) |
(615,538) |
20.63% |
|
Administrative expenses |
(239,569) |
(276,143) |
-13.24% |
|
Finance costs |
(905,649) |
(595,932) |
51.97% |
|
Other operating charges/income-net |
(755,231) |
(609,386) |
23.93% |
|
Other income |
174,774 |
364,336 |
-52.03% |
|
Profit before taxation for the year |
7,045,915 |
7,320,001 |
-3.74% |
|
Taxation |
(1,690,701) |
(2,167,865) |
-22.01% |
|
Profit after taxation for the year |
5,355,214 |
5,152,136 |
3.94% |
|
Earnings per share – basic and diluted (Rupees) |
12.31 |
11.84 |
3.97% |
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