International Steels Revenue Climbs 39% to Rs70bn in 9MFY22

By Qudsia Bano

ISLAMABAD, June 22 (INP-WealthPK): Revenues of International Steels Limited climbed by 39% to Rs70.5 billion in the first nine months (July-March) of the ongoing fiscal year 2021-22 from Rs50.9 billion in the same period of 2020-21. The company’s net income thus increased by 4% to Rs5.3 billion from Rs5.1 billion. Gross profit increased by 5% to Rs9.5 billion from Rs9 billion, while trade discounts decreased by 22% to Rs73.1 billion during the two comparable periods.

Particulars 31-Mar-22 31-Mar-21 YoY Growth
‘000 PKR ‘000 PKR
Total Revenue 70,557,394 50,917,815 39%
Gross Profit 9,514,092 9,052,664 5%
Profit before Tax 7,045,915 7,320,001 -4%
Net Income 5,355,214 5,152,136 4%

Annual Results 2020-21

PATTERN OF SHAREHOLDING – INTERNATIONAL STEELS LIMITED As of June 30,  2021
Categories of Shareholders Shares Held Percentage
Sponsors / Holding Company 245,055,543 56.335
Directors, Chief Executive Officers and their spouse(s), and minor children 11,308,500 2.600
Associated Companies, Undertakings, and related Parties 39,477,657 9.075
NIT and NBP 7,098,218 1.632
Banks, Development Financial Institutions, Non-Banking Financial Institutions 9,268,017 2.131
Insurance Companies 4,968,883 1.142
Modarabas and Mutual Funds 13,653,486 3.139
Public & Other Companies 13,403,953 3.081
Retirement Funds & Charitable Trusts 2,385,711 0.548
Strategic Investor 20,626,500 4.742
Foreign Companies 2,534,412 0.583
Modarabas & Others 25,000 0.006
General Public / Individuals – Local 58,002,078 13.334
General Public / Individuals – Foreign 7,192,042 0.9291%
Total 435,000,000 100.00
Source: Company financial Report

 

Directors, chief executive officers, their spouse(s) and minor children owned 2.6% of the company’s shares as of June 30, 2021. Sponsors or holding companies owned 56.3%, and associated companies, undertakings and related parties owned 9% of the shares.

NIT and NBP held 1.6% of the shares, while banks, development financial institutions and non-banking financial institutions owned 2.1% of the total shares of the company.

Insurance companies owned around 1.1% of the shares. Modarabas and mutual funds held 3.1%; public and other companies held 3% and strategic investors owned 4.7% of the shares. General public (local) owned 13.3% of the shares, while the general public (foreigners) held 0.9291% of the total shares of the International Steels Limited.

Financial Performance (2020-21)

The company’s net revenues climbed by 45% to Rs69.7 billion during the fiscal year 2020-21 due to good growth in all income sources. In 2019-20, the company’s revenue stood at Rs48 billion. The company’s gross profit climbed by 220% to Rs13.4 billion in 2020-21 from the previous year’s Rs4.2 billion. During 2020-21, the company made a profit-after-tax of Rs7.4 billion compared to Rs494 million in 2019-20, resulting in earnings per share (EPS) of Rs17.16 versus Rs1.14 the previous year.

Particulars 30-Jun-21 30-Jun-20 Growth %
Rs. In 000 Rs. In 000
Gross Revenue 69,796,240 48,081,937 45%
Gross Profit 13,491,873 4,212,857 220%
Operating Profit 11,106,522 2,756,987 303%
Profit after Tax 7,466,331 494,851 1409%
Earnings Per Share 17.16 1.14 1405%

Earnings Per Share

Earnings per share of International Steels Limited continued to decline from 2018 to 2020, but in 2021 the EPS increased massively to Rs17.16 from Rs1.14 the previous year. This sudden increase in EPS was the result of high revenues and net income generated by the company during 2020-21.

International Steels Limited produces cold-rolled steel coils, galvanized coils, and colour-coated steel. It offers cold-rolled steel in thicknesses ranging from 0.25mm to 3.0mm, galvanized steel in thicknesses ranging from 0.25mm to 2.0mm, and colour-coated steel in thicknesses ranging from 0.20mm to 1.50mm. It has a rolling capacity of 500,000 tonnes and generates about 400,000 metric tonnes of galvanized steel. Colour-coated sheets are produced on a variety of substrates, including cold-rolled, galvanized, galvalume, aluminum and stainless-steel sheets. Its cold-rolled steel is used in ceiling lights, tube lights, ceiling fans, oil drums, lube drums and motorcycle frames, while its galvanized steel is used in packaging, furniture, washing machines, gas ovens and microwave ovens, and its colour-coated steel is used in ice boxes, tubs, buckets and storage bins.