KARACHI: The profits of International Industries Limited (INIL) plunged to Rs1.27 billion translating into the earnings per share (EPS) of Rs5.07 for the quarter ended December 31, 2021, a bourse filing said on Thursday.

The company posted a profit of Rs3.25 billion, the EPS of 17.34 during the corresponding quarter of the previous year.

“The decline in the earnings is attributed to lower profitability of the flat steel segment (company’s subsidiary International Steel) along with the absence of inventory gains in the core business,” Ahmed Rauf at Sherman Securities said.

For the half year ended December 201, however, the company posted a 2.6 per cent increase to Rs3.9 billion (EPS of 16.54), against the profits of Rs3.8 billion and EPS of Rs20.13.

INIL also declared an interim cash dividend of Rs2/share along with the corporate results.

The company’s net revenue during the quarter under review clocked in at Rs25.5 billion, almost flat compared to Rs25.56 billion during the second quarter of fiscal year 2021, owing to lower volumes despite higher domestic flat steel prices, which increased around 55 per cent.

The company’s operating costs increased 27 per cent during the second quarter of FY22 owing to higher distribution expense which was up 61 per cent. The finance cost of the company increased 68 per cent to Rs0.6 billion, likely due to the higher interest rates and exchange loss during the quarter.