International Steels earns profit of Rs2.66 billion

KARACHI: The International Steels Limited (ISL) has announced a net profit of Rs2.66 billion and earnings per share (EPS) of Rs6.13 for the quarter ended September 30, 2021, which is 375 per cent higher than the profit of Rs559.1 million and the EPS of Rs1.29 in the corresponding quarter of the last year.

“The result is higher than expectations due to better than expected gross margins, likely because of higher inventory gains and lower-than-estimated distribution costs,” Ahmed Rauf at Sherman Securities said.

The company did not announce any payout along with the financial results.

The sales revenues during the period surged 56.4 per cent to Rs24.4 billion, compared with Rs15.66 billion recorded in the corresponding quarter.

“[The] revenues grew primarily on the back of higher domestic CRC/GI prices (up 65 per cent).”

The finance cost declined 32.17 per cent to Rs175.9 million, while other income declined to Rs6.19 million, compared with Rs51.1 million in the same period of the last year.

Indus Motor declares cash dividend of Rs34.5/share

Indus Motor Company (IMC) has declared a cash dividend of Rs34.5/share along with the financial results for the quarter ended September 30, 2021.

IMC announced a net profit of Rs5.42 billion and earnings per share (EPS) of Rs69.02 for the quarter ended September 30, 2021, which is 194 per cent higher than the profit of Rs1.84 billion and the EPS of Rs23.48 in the corresponding quarter of the last year.

The sales revenues during the period surged 91.5 per cent to Rs65.5 billion, compared with Rs34.19 billion recorded in the corresponding quarter.

“The topline swelled 92 per cent, owing to 59 per cent increase in volumes where the reductions in prices in the light of the budgetary measures has stimulated the demand,” an analyst at AKD Securities said.

“The gross margin of the company normalised to 10.8 per cent against 12.3 per cent in the fourth quarter of FY21, owing to the currency devaluation and increase in CRC/HRC prices.”

The contribution from other income inflated 88 per cent to Rs2.04 billion attributed to gigantic cash and sales tax investment reserve of Rs84 billion as of the fourth quarter of FY21. “Although we expect a gradual slowdown industry-wide in the latter half of FY22, owing to monetary tightening, we expect IMC to sail freely on account of mounting farmers’ income and inadequate competition in sedan segment,” an AKD Securities analyst said.

Amreli Steels profit up 538%

Amreli Steels Limited (ASTL) has announced a net profit of Rs701.8 million and the earnings per share (EPS) of Rs2.36 for the quarter ended September 30, 2021, which is 538 per cent higher than the profit of Rs110.6 million and the EPS of Rs0.37 in the corresponding quarter of the last year.

The company did not announce any payout along with the financial results.

The sales revenues during the period surged 49.3 per cent to Rs11.8 billion, compared with Rs7.9 billion recorded in the corresponding quarter.

“[The] revenues increased mainly due to an increase in the gross margin to 14.3 per cent,” an analyst at AKD Securities said.

The finance cost declined 15 per cent to Rs387.6 million, while other income increased to Rs20.25 million, compared with Rs5.6 million in the same period of the last year.