Recently, the International Steels Limited has reported a profit of PKR 2.21 billion just in the 2nd quarter of the FY21 and it is up by 1800% as compared to the same period of FY20.
In the 2nd QFY20, the company reported a profit of PKR 118 billion only as per the notice that was sent to Pakistan Stock Exchange. Industry consensus has been beaten with wide margin by this announcement. Along with these results, ISL Company has declared a cash dividend also that is of per share RS 3 only.
As per the report of Topline Securities, this sharp increase in the company’s earnings was just on the back of their abnormal inventory gains that propelled the gross margins as up to 20% during second quarter.
The sales of ISL increased with 29.20% that is to RS. 17.84 billion as compared to the amount Rs. 13.81 billion that was in the same period of the FY20. However, this increase in the sales during this quarter was due to a rise in both the price as well as the quantity sold.
Moreover the finance cost of this company fell by up to 74% to the value of Rs. 179 million as compared to the amount RS. 679 million that was due to the fall or decline in both like borrowing rate borrowings ISL. Meanwhile the earnings per share was increased from RS. 0.27 to RS. 5.09.
The anticipation for first quarter of 2021 is that during the first half of this FY21, ISL will book a profit of about RS. 2.77 billion as up by 495.7% as compare to RS. 465 million as due to an increase in both the gross margins as well as revenues that is Rs. 33.5 billion, and also up by 32% year-on-year as compared to RS. 25.36 billion.
