Karachi: The Board of Directors of International Steels Limited (ISL) convened on January 28, 2025, at the company’s registered office to review the unaudited financial results for the half-year ending December 31, 2024. The meeting concluded with the decision to recommend no cash dividends, bonus shares, or rights shares for the shareholders. Additionally, there were no other entitlements or corporate actions proposed.
According to the financial report, ISL experienced a decline in revenue and profit margins during the six-month period. The company's revenue from contracts with customers stood at 31.80 billion rupees, a significant drop from the 39.74 billion rupees recorded during the same period in the previous year. Consequently, the gross profit decreased to 2.38 billion rupees from the previous year's 5.31 billion rupees.
Operating profit also suffered, falling to 1.32 billion rupees from 4.13 billion rupees. The profit before income tax was reported at 826.61 million rupees, compared to 3.39 billion rupees for the same period in the previous year. After accounting for income tax expenses, the company's profit for the half-year was 534.09 million rupees, a sharp decrease from the 2.35 billion rupees recorded in the previous year. Earnings per share (EPS) reflected this downturn, decreasing to 1.23 rupees from 5.41 rupees.
The financial performance was impacted by several factors, including increased finance costs, which rose to 559.15 million rupees from 371.29 million rupees the previous year. Other expenses totaled 85.71 million rupees, a reduction from the previous year's 398.52 million rupees. Despite these challenges, the company managed to generate other income of 149.45 million rupees.
International Steels Limited's total assets as of December 31, 2024, were valued at 47.66 billion rupees, up from 44.69 billion rupees as of June 30, 2024. The company's non-current assets included property, plant, and equipment valued at 19.66 billion rupees, and intangible assets amounting to 462.84 million rupees. Current assets saw an increase, with cash and bank balances rising to 6.74 billion rupees from 2.71 billion rupees.
In terms of liabilities, the company's current liabilities increased to 22.82 billion rupees, up from 18.73 billion rupees, primarily due to higher short-term borrowings, which climbed to 8.44 billion rupees from 3.56 billion rupees.
Despite the financial challenges, the company generated a substantial net cash flow from operating activities amounting to 5.23 billion rupees, compared to 3.17 billion rupees in the previous year. However, cash used in investing activities amounted to 5.31 billion rupees, primarily due to investments in Pakistan Investment Bonds. Financing activities resulted in a net cash inflow of 3.36 billion rupees, driven by proceeds from short-term borrowings.
According to information available from the Pakistan Stock Exchange (PSX), ISL's financial performance reflects the broader challenges faced by the steel industry, including fluctuating market conditions and increasing production costs. The company aims to navigate these challenges and improve its financial standing in the coming quarters.