Karachi: International Steels Limited released its financial results for the quarter ending September 30, 2024, 0n 30 Oct 2024. Amidst fluctuating global steel prices and economic uncertainties, the company reported a profit of Rs. 179 million, a significant decrease from the Rs. 1,117 million recorded in the corresponding period last year.
During the reported period, Pakistan's economic landscape showed signs of recovery, spurred by a new agreement with the International Monetary Fund (IMF). The 37-month Extended Fund Facility, worth USD 7 billion, aims to stabilize the country's fiscal situation and foster economic reforms. Despite these positive developments, Pakistan continues to face several economic challenges, including high energy costs, reduced consumer purchasing power, and political instability, which are affecting business operations across the country.
According to information available from the Pakistan Stock Exchange (PSX), International Steels Limited has navigated these difficulties by focusing on operational efficiency and cost management. The volatile global market, particularly the decline in flat steel prices to USD 500 per metric ton from USD 640, has pressured the domestic steel industry. This pressure is further exacerbated by tax-exempt imports from the FATA/PATA regions and the evasion of anti-dumping duties on galvanized steel.
To combat rising energy costs, International Steels has increased its investment in sustainable energy, with a 6.4 MW solar power generation plant slated to become operational next quarter. This move is part of a broader strategy to enhance energy efficiency and reduce dependency on conventional power sources, which have become more expensive following a 10% increase in gas tariffs for captive power, now costing Rs. 3,000 per MMBtu.
The company remains committed to improving its financial health through stringent working capital management and ongoing cost rationalization efforts. The management has expressed its gratitude to its employees and stakeholders for their dedication during these challenging times, acknowledging their role in sustaining the company's operations.