International Steels Limited (ISL) Managing Director Towfiq Chinoy. PHOTO: ISL
KARACHI: International Steels Limited (ISL) has posted a net profit of Rs857 million for the quarter ended March 31, 2017, up 102% from Rs425 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Tuesday.
Earnings per share rose to Rs1.97 for Jan-Mar 2017 compared to Rs0.98 in the corresponding period of previous year. Cumulatively, in the first nine months (Jul-Mar) of current financial year 2016-17, the company earned Rs2.01 billion, up a massive 479% from just Rs347 million in the same period of last year.
Revenues increased 11% quarter-on-quarter as international steel prices remained on the uptrend and local players tracked the movement and increased rates in the domestic market.
Gross margins of the company dropped from 21% in the second quarter to 18% in the third quarter.
However, a high effective tax rate of 38% in the third quarter (44% in nine months of FY17) dented the overall earnings.
Recent imposition of anti-dumping duties on steel is set to benefit the company as the decision gives it more autonomy to influence prices. However, any reversal of the duties, as the case is still going on, can significantly dent the earnings outlook.
Similarly, any favourable decision on this front will significantly help the company earnings.
Published in The Express Tribune, April 19th, 2017.
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