Karachi: International Steels Limited (ISL), a major player in the steel manufacturing sector of Pakistan, has shown a mix of growth and challenges in its financial performance for the fiscal year ending June 30, 2024. Despite a decrease in revenue and profit, the company managed to increase its total assets and net cash flow from operations.

For the year 2024, ISL reported a decline in revenue to PKR 69.30 billion from PKR 76.75 billion in 2023. This decrease was primarily due to a reduction in costs of sales, allowing the company to record a gross profit of PKR 8.57 billion, down from PKR 10.61 billion the previous year. The operating profit notably decreased to PKR 6.01 billion from PKR 9.22 billion, largely impacted by higher selling and distribution expenses along with administrative costs.

According to information available from the Pakistan Stock Exchange (PSX), ISL’s finance costs also saw a decline to PKR 856.09 million from PKR 2.26 billion in 2023, reflecting a lower burden of debt servicing. Other expenses and income also decreased, leading to a net profit before taxes of PKR 4.47 billion compared to PKR 5.02 billion in the prior year. After accounting for income tax expenses, the net profit for the year stood at PKR 3.65 billion, a decrease from PKR 3.52 billion in 2023.

The company’s assets experienced growth, increasing to PKR 44.69 billion in 2024 from PKR 42.39 billion in 2023. This was bolstered by a significant rise in non-current assets, including property, plant, and equipment, and long-term deposits. The total equity of the company also improved, reaching PKR 23.97 billion, up from PKR 21.68 billion in 2023.

In terms of cash flow, ISL improved its net cash generated from operating activities, reporting PKR 4.98 billion in 2024 compared to PKR 2.26 billion in 2023. However, cash flows from investing and financing activities indicated more expenditures and higher dividend payments, leading to an overall net increase in cash and cash equivalents of PKR 1.97 billion by the end of 2024.

The financial metrics point to a strategic handling of finance costs and investments in core assets despite the falling revenue and profits. The company's ability to maintain a solid asset base and manage cash flow effectively highlights its resilience in a challenging market environment.