ISR registers 59% decline in profit in H1FY23

Pakistan’s largest flat steel exporter becomes the latest to succumb to adverse economic conditions

PESHAWAR: According to a Wealth Pak report, the International Steels Limited (ISL) posted a net profit of Rs2.9 billion, while its half-yearly revenue fell by 22%. ISL registered sales of Rs 33 billion as compared to its sales volume for the same period in FY22, which was Rs 43 billion. 

ISL is the largest flat steel manufacturer and exporter of Pakistan and is a daughter company of International Industries Limited. ISL is the largest engineering company in Pakistan with a market cap of Rs 18.2 billion. Despite being export oriented, the company saw losses in the second quarter of the fiscal year owing to the price cap on the US dollar.

The net profit saw a massive drop of Rs 4.1 billion, which fell from Rs4.2 billion to Rs 60 million and the company recorded a net profit ratio of just 0.18%. The total sales of the company were Rs 16 billion, out of which, the gross profits were recorded at Rs 2.2 billion in the first quarter of FY23.  The generated value per share stood at Rs1.03 in that period. The wealth Pak report said that the gross profit ratio and net profit ratio of ISL stood at 13.54% and 2.71% respectively in the Q1.

In the second quarter of fiscal year 2023, the ISL income increased to Rs 17 billion, which stood at Rs 16 billion, for the same period in fiscal year 2023. Thus, the loss per share for the quarter was Rs 0.89.  The ISL’s market value fell by 23%, to Rs 19 billion from Rs 25 billion. However, in the second quarter, the company experienced a further 17% decline in market value, from Rs 23 billion to Rs 19 billion.

The company recorded a decline of 59% in its gross profit during the first half of the financial year 2022-23 compared to the same period of the previous financial year.  ISL also exports its products to over 20 countries and is recognised as a largest exporter of flat steel.

 

Aziz Buneri
Aziz Buneri
Aziz Buneri covers financial, social, political and regional issues for Pakistan Today and Profit. He can be reached at [email protected]

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