International Steels Limited’s board of directors approved undertaking a 6.4 MW solar power project at its Karachi factory which is expected to be completed in Q1 FY25.
The company said, in a notice to the Pakistan Stock Exchange (PSX), that the solar energy initiative, costing Rs 1 billion, plays a critical role in cost savings and reinforces its commitment to sustainable environmental practices.
In another notice, International Steels said that its profit after tax (PAT) increased to Rs 2,353 million in the first half of the FY24, compared to just Rs 61 million in the corresponding period last year.
The company’s revenue increased by 17% in 6MFY24, gross profit by 79%, and other income by 143% compared to the same period last year. The primary reason for increased profitability in FY24 is the reduction in finance costs.
During FY2022-23, the company generated a cash flow of Rs 22.3 billion from operational activities and successfully lowered its overall long and short-term borrowings by Rs 16.8 billion in the same period.
The company’s board recommended an interim cash dividend of Rs 2.50 per share, providing a return of 25% to shareholders.
Profit before taxation improved from a loss of Rs -32 million to a profit of Rs 3,511 million, showcasing an extraordinary turnaround in the company’s operational performance in the first half of the current financial year.
| Sixth Months Ended | |||
| All Values in Rupees Million | 31-Dec-22 | 31-Dec-23 | Percentage Changes |
| Revenue | 33,926 M | 39,739 M | 17% |
| Cost of sales | -30,951 M | -34,426 M | 11% |
| Gross profit | 2,975 M | 5,313 M | 79% |
| Selling and distribution expenses | -148 M | -947 M | 538% |
| Administrative expenses | -153 M | -236 M | 54% |
| -301 M | -1,183 M | ||
| Finance cost | -1,652 M | -371 M | -78% |
| Other operating charges | -1,116 M | -399 M | -64% |
| -2,767 M | -770 M | ||
| Other income | 62 M | 150 M | 143% |
| Profit / Loss before taxation | -32 M | 3,511 M | -11241% |
| Taxation | 92 M | -1,159 M | -1354% |
| Profit / Loss After taxation | 61 M | 2,353 M | 3765% |
