Corporate results: International Steels’ profit jumps 77% to Rs1 billion

Published: October 18, 2017
A worker cuts a steel rod inside a steel factory. PHOTO: REUTERS

A worker cuts a steel rod inside a steel factory. PHOTO: REUTERS

KARACHI: International Steels Limited (ISL) posted a net profit of Rs1 billion in the first quarter ended September 30, 2017, up 77% compared to Rs566 million in the same period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs2.31 in July-September 2017 compared to an EPS of Rs1.30 last year.

The KSE-100 index closed at 40,724.96, down 66 points or 0.16% on Tuesday whereas ISL’s share price stood at Rs104.97, down 3.4%.

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Topline Securities commented that the result was in line with its forecast.

ISL recorded highest-ever quarterly sales revenue of Rs10.7 billion depicting a strong growth of 63% year-on-year. As per estimates, the volumetric growth was 20% while realised prices increased around 35% year-on-year.

ISL, Pakistan’s largest steel sheet producer, easily passed on increase in steel prices as international cold-rolled coil (CRC) prices went up 36% year-on-year in the first quarter of fiscal year 2018.

Gross margins came in at 16.5% compared with 16.2% in the same quarter last year (15% in previous quarter) while gross profit increased 66% year-on-year to Rs1.8 billion.

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ISL is well poised to capture demand growth with its added capacity coming online next year along with protection in the form of anti-dumping duty in the wake of a petition filed against dumping of colour-coated steel, the report added.

A downward revision in the duty structure, volatility in commodity prices, dumping from countries not covered by anti-dumping duties and delay in expansion were key risks to the company, the report said.

Published in The Express Tribune, October 18th, 2017.

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