International Steels’ Profits Grow by 1800 percent - Android

International Steels Limited (ISL) has reported a profit of Rs. 2.21 billion in the second quarter of FY21, up by… Read More

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International Steels Limited (ISL) has reported a profit of Rs. 2.21 billion in the second quarter of FY21, up by around 18x or 1800 percent compared to the same period in FY20.

The company had reported a profit of only Rs. 118  billion in the 2QFY20, according to a notice sent to the Pakistan Stock Exchange (PSX). The announcement has beaten the industry consensus by a wide margin.

Alongside the results, the company also declared a cash dividend of Rs. 3 per share.

According to a report by Topline Securities, the sharp increase in earnings was on the back of abnormal inventory gains, which propelled gross margins to 20 percent during the second quarter. The sale of the company increased by 29.20 percent to Rs. 17.84 billion compared to Rs. 13.81 billion in the same period of FY20. The increase in sales was due to an increase in both price and quantity sold during the quarter.

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The finance cost of the company fell by 74 percent to Rs. 179 million compared to Rs. 679 million due to the decline in both borrowing rate borrowings of the company.

Earnings per share of the company were increased to Rs. 5.09 from Rs. 0.27.

Half Year

During the first half of FY21, the company booked a profit of Rs. 2.77 billion, up by 495.7 percent compared to Rs. 465 million due to the increase in both gross margins and revenues to Rs. 33.5 billion, up by 32 percent year-on-year compared to Rs. 25.36 billion.

At the time of filing this report, ISL’s shares at the bourse were trading at Rs. 100.50, up by Rs. 2.79 or 2.86 percent, with a turnover of 5.34 million shares on Friday.

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