Corporate results: International Steels’ profit jumps 77% to Rs1 billion
Quarterly sales revenue touches record high
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.
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%.
Corporate corner: UBL and PMIC sign deal
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.
Auto part makers urge removal of regulatory duty on steel material
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.