Karachi January 27 2023: International Steels Limited, the largest cold rolled manufacturer in Pakistan, reported historic high loss of PKR 388 million in the quarter ended December 2022, according to company filing to the exchange.
Company share price fall PKR 3.01 or 6.97 percent in today trading at Pakistan Stock Exchange.
Company achieved net sales of PKR 17.3 Billion as compared to PKR 18.8 Billion, declining by 7.5 percent over last year.
Government policy of economic slowdown coupled with high inflation and floods have seriously impacted the domestic demand. Subdued demand has caused inventory buildup exerting pressure on finance costs.
Resultantly company reported historic high quarterly loss of PKR 388 million in the quarter ended December 2022 against profitability of PKR 1.6 billion last year.
Global steel output is declining due to weak demand in industrialized countries on account of fears of an expected recession, high interest rates to curb rising inflation. The ongoing conflict between Russia and Ukraine has resulted in higher energy prices in the west contributing to a further slowdown in the European markets.
Major steel manufacturers including in China have reduced their steel production to support prices with little success. Hot Rolled Coil prices continued to weaken and has so far shown a decline of 40% to USD 600 – 650 / MT after touching a peak of USD 1,100 last year.
