Karachi: International Industries Limited (IIL) has released its financial results for the half-year ending December 31, 2024, showcasing a notable decline in profitability. The Board of Directors reviewed these results during a meeting on January 30, 2025, held at the company’s registered office in Karachi. Despite the challenging financial environment, the board decided against declaring any cash dividends, bonus shares, or right shares for the period.
According to the financial statements, IIL's revenue from contracts with customers for the half-year stood at 11.85 billion, a significant decrease from the 16.60 billion reported in the same period the previous year. The cost of sales followed a similar downward trajectory, amounting to 10.65 billion, compared to 14.06 billion in the prior year. This resulted in a gross profit of 1.20 billion, down from 2.54 billion.
The company faced challenges in controlling its expenses, with selling and distribution expenses recorded at 639.46 million and administrative expenses at 201.80 million. Despite a positive reversal of loss allowance on trade debts amounting to 15.10 million, the overall operating profit fell sharply to 375.43 million from 1.65 billion in the previous year.
International Industries Limited also struggled with finance costs, which totaled 347.08 million, although this was a reduction from the 828.69 million reported in the last financial year. When combined with other operating expenses of 9.70 million, IIL's profit before tax was 694.94 million, a considerable decrease from the 1.31 billion reported previously.
The income tax expense for the half-year was 307.45 million, leaving the company with a profit after tax of 387.48 million, compared to 864.95 million in the corresponding period of the previous year. Consequently, the earnings per share were recorded at 2.94, down from 6.56.
According to information available from Pakistan Stock Exchange (PSX), the company’s total assets also decreased, totaling 28.05 billion as of December 31, 2024, compared to 31.64 billion in June 2024. This decline was primarily due to reductions in stock-in-trade and trade debts, reflecting the challenging market conditions.
Despite these financial challenges, International Industries Limited maintained a stable equity position, with total shareholders' equity recorded at 18.35 billion. The company’s non-current liabilities were reduced to 2.69 billion, primarily due to a decrease in long-term financing. Current liabilities decreased to 7.00 billion, reflecting a reduction in short-term borrowings.
The cash flow statement indicated a net increase in cash and cash equivalents by 5.27 billion, significantly improving from the previous period. This increase was driven by positive cash flows from operating activities, which generated 9.23 billion, offset by cash used in investing activities amounting to 5.55 billion.
International Industries Limited operates within the designated market category of the manufacturing sector, specifically focusing on the production and distribution of industrial goods. The company continues to adapt to market challenges and is committed to enhancing its operational efficiency and financial stability.