Karachi October 29 2022: International Steel Limited profit plunged 83 percent to Rs 448 million in first quarter of fiscal year 2023, according to company filing to the exchange.
The Company achieved net sales of Rs. 16.5 Bn as compared to Rs. 24.5 Bn, declining by 33% 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. Company continued to capitalize on its global footprint with a contribution of 20% and 22% in the overall sales volume and net sales respectively. PAT and earnings per share remained at Rs. 448 million and Rs. 1.03 as compared to Rs.2,668 million and Rs. 6.13 over same period last year.
“We are committed to invest in new technology, quality enhancements and exploring new markets for its product. New Electrolytic Cleaning Line has stabilized and enabled the Company to serve Tin plate segment of the Cold Rolled market” says Company Chairman Mr Kamal A. Chinoy.
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.
About the Company
International Steels Limited (‘the Company’) was incorporated on September 3, 2007 as a public unlisted Company limited by shares under the repealed Companies Ordinance, 1984 and is domiciled in the province of Sindh. The Company was listed on the Pakistan Stock Exchange Limited on June 1, 2011. The Company is subsidiary of International Industries Limited (The Holding Company) which holds 245,055,543 (June 30, 2022: 245,055,543 shares) shares of the Company as at September 30, 2022 representing 56.3% (June 30, 2022: 56.3%) of the shareholding of the Company.
The net assets of the Steel Project Undertaking of International Industries Limited (the Holding Company), amounting to Rs. 4,177.167 million determined as at August 23, 2010 (day immediately preceding the completion date) in accordance with the Scheme of Arrangement, were transferred to the Company on August 24, 2010. In consideration of transferring to and vesting the Steel Project Undertaking in the Company, 417,716,700 fully paid-up ordinary shares were issued at par value to the Holding Company.
The primary activity of the Company is the business of manufacturing of cold rolled, galvanized and colour coated steel coils and sheets. The Company commenced commercial operations on January 1, 2011.
