International Industries (INIL): 4QFY18 EPS Rs7.06,+12% YoY (-8% QoQ); DPS Rs6.5/share (In-line with Expectations)
- International Industries (INIL) posted earnings of Rs7.06/share during 4QFY18, in line with our expectations. Earnings witnessed growth of 12% YoY due to increase in subsidiary’s (International Steels or ISL) earnings by 10% YoY. To recall, ISL posted higher earnings due to increase in its sales by 43% YoY to Rs12.8bn during 4QFY18.
- Gross margins of the INIL contracted by 1.9ppts YoY to 15.4% during 4QFY18 due to higher HRC prices and rupee devaluation.
- During FY18, INIL reported earnings growth 26% YoY to Rs28.75/share as ISL’s earnings went up by 43%YoY. Consolidate finance cost of INIL surged by 44%YoY to Rs980mn due to higher debt borrowing amid increasing cost of its working capital requirement.
- Effective tax rate of the INIL clocked in at 26.7% during FY18 vs. 33.1% in FY17. Lower tax rate is underpinned by availability of tax rebates to ISL on its recent capex.
- Other operating expenses during FY18 increased to Rs834mn, up by 38% YoY due to FX loss on foreign payables.
- We flag 1) downward revision in duty/ADD structure, 2) volatility in commodity prices, and 3) dumping from countries not covered by anti-dumping duties as key risks to company’s earnings/valuation forecast.
International Industries Limited is a steel pipe producer and exporter. The Company's segments are Steel and Plastic. It is engaged in the business of manufacturing and marketing galvanized steel pipes, precision steel tubes, American Petroleum Institute (API) line pipes and polyethylene pipes. Its offerings in steel pipe include Galvanized Iron Pipe, Hot Dipped Galvanized and Black Pipe (ASTM A53), Cold Rolled Steel Tubing, Scaffolding Pipe (Safescaf), API Line Pipe and A500 Structural and Ornamental Hollow Sections; Plastic Pipe include Plumbo 200 (Polypropylene Random Copolymer (PPRC) Pipe), Plumbo 300 (cross-linked polyethylene (PEX) Pipe), Megaflo 100 (High Density Polyethylene Water (HDPE) Water Pipe), Flexflo 80/100 (medium-density polyethylene (MDPE) Gas Pipe) and Flexflo Duct (HDPE Duct Pipe), and Stainless Steel Tube are COSMO (SS 304), FORZA (SS 409) and HYDRA. It caters to a range of market segments, including oil and gas, auto industry, furniture and transformer sectors.
Topline Securities is one of the fastest-growing brokerage houses in Pakistan. It has strong Equity Brokerage, Economic/ Equity Research, Commodity Trading and Corporate Finance & Advisory functions.
Topline Securities has been endowed with numerous awards by renowned international financial organizations. The highlights of which consists of the award for ‘Best Local Brokerage House of Pakistan’ by Asiamoney Brokers Poll (the largest Asia-focused equity services provider poll) in 2016 and ‘Best Equity Brokerage House’ by CFA Society Pakistan in 2015.
Previously, Topline Securities held the title for ‘Best Brokerage House’ for 4 consecutive years (2011-2014) by Asiamoney Brokers Poll. Other awards include the ‘Best Salesperson’ award by Asiamoney for 6 consecutive years (2011-2016), the ‘Arabia Fast Growth 500’ award and ‘Pakistan Fast Growth 100’ award in 2012 and 2013 by AllWorld Network.
JCR-VIS, a credit rating agency providing independent rating services in Pakistan has assigned initial rating of “A-2” for short term and “A” for long term to Topline Securities. Topline Securities is registered as Underwriter, Book Runner and Research Entity with Securities & Exchange Commission of Pakistan (SECP).
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.