International Industries Limited (PSX: INIL) was incorporated in Pakistan in 1948. The principal activity of the company is the manufacturing and sales of galvanized steel pipes, API line pipes, precision steel tubes as well as polymer pipes and fittings. Besides serving the local market, INIL has a footprint in around 60 countries across the globe.
Pattern of Shareholding
As of June 30, 2025, INIL has a total of 131.882 million shares outstanding which are held by 4499 shareholders. Directors, CEO, Sponsors and their family members have the majority stake of 42.989 percent in the company followed by Government financial institutions, NIT and NBP related companies holding 23.67 percent shares of INIL. Local general public accounts for 20.70 percent shares of INIL while Modarabas & Mutual funds own 3.74 percent shares. Public, private and other companies hold 3.55 percent shares of INIL followed by Banks, DFIs and NBFIs by holding 2.45 percent shares. Around 1.45 percent of the company’s shares are held by insurance companies and 1.13 percent by associated companies. The remaining shares are held by other categories of shareholders.
Financial Performance Trail (2021-25)
The topline and bottomline of INIL fluctuated over the period under consideration. The topline rode an upward trajectory in 2021 and 2022 followed by a sharp decline in 2023. In 2024, INIL’s net sales picked up and then plunged in 2025. Conversely, the bottomline posted growth only in 2021 and 2023. The company registered net loss in 2020. INIL’s margins dropped in 2020 followed by a rebound in margins in 2021. In 2022, gross and net margins eroded while operating margin progressed. In 2023, all the margins considerably recovered with operating and net margins boasting their optimum values. In 2024, gross margin ticked up while operating and net margins dwindled. This was followed by a descent in all the margins in 2025. The detailed performance review of the period under consideration is given below.
In 2021, INIL posted a staggering 52.60 percent year-on-year growth in topline which clocked in at Rs. 28,940.10 million. This came on the back of volumetric growth of 25 percent and 71 percent in local and export sales respectively. During the year, local LSM improved by 8.99 percent with local steel and iron sectors rebounding by 1.66 percent. Cost of sales also magnified by 41.91 percent in 2021 due to record high prices of steel. Yet higher sales volume and improved prices of INIL’s products resulted in 189.76 percent year-on-year growth in gross profit. GP margin boasted a strong rebound and climbed up to 13.73 percent in 2021 from 7.23 percent in 2020. 83.78 percent higher distribution expense was the consequence of higher inflation as well as rise in ocean freight charges due to superior export sales. Administrative expense also surged by 28.26 percent in 2021 due to increased payroll expense on account of inflationary pressure. Higher provisioning done for WWF and WPPF as well as generous donations drove up other expense by 514.129 percent in 2021. Exchange gain slightly shrank due to appreciation in the value of Pak Rupee in 2021; however, high dividend and rental income from subsidiary company saved the day for INIL as its other income flew up by 81.70 percent year-on-year in 2021. The company also reversed the loss allowance of Rs.52.57 million on trade debts in 2021 booked in the previous years. Operating profit multiplied by a stunning 272.85 percent in 2021 which translated into OP margin of 10.42 percent versus OP margin of 4.26 percent recorded in 2020. Finance cost plunged by 38.97 percent in 2021 as discount rate was reduced during the year. INIL posted net profit of Rs.2314.56 million in 2021 with NP margin of 8 percent and EPS of Rs.17.55. This was against the net loss of Rs.694.20 million and loss per share of Rs.5.26 recorded in 2020.
In 2022, the topline posted a robust year-on-year growth of 30.82 percent to clock in at Rs.37,857.86 million. Locally, the off-take slid by 10 percent year-on-year due to uncertain economic and political environment as well as misuse of tax exemptions by FATA/PATA region players. Conversely, export volume grew by 9 percent year-on-year in 2022 on the back of improved access to the European region which counterbalanced low sales in Afghanistan and Srilanka on account of political turbulence in those territories. Historic high prices of steel coupled with depreciated Pak Rupee resulted in 32.93 percent year-on-year rise in the cost of sales. Gross profit grew by 17.49 percent in 2022 but GP margin slipped to 12.33 percent. The company undertook rigorous cost control measures and pushed down its administrative expense by 9.77 percent in 2022, however, selling and distribution expense grew by 73.17 percent year-on-year due to higher exports sales volumes which pushed up the freight charges. Other income posted a handsome growth of 209.26 percent in 2022 on account of dividend income from subsidiary company and robust exchange gain due to Pak Rupee depreciation. Other expense moved down by 34 percent in 2022 due to lower profit related provisioning, donations and business development expense. Operating profit expanded by 60.52 percent in 2022 and OP margin also ticked up to 12.78 percent. The ecstasy proved to be transient as 56.39 percent spike in finance cost due to high discount rate and added borrowings as well as high tax rate due to the imposition of super tax shoved the bottomline down by 6.87 percent year-on-year in 2022 to clock in at Rs. 2155.67 million. NP margin also plunged to 5.70 percent in 2022 while EPS was recorded at Rs.16.35.
After two consecutive years of topline growth, INIL’s topline was 29.24 percent down to clock in at Rs. 26,786.77 million in 2023. On account of economic and political instability in the country, shut down of auto industries due to import restrictions and slow construction and infrastructure related activity; LSM shrank by 10.26 percent in 2023 versus LSM growth of 10.6 percent recorded in 2022. Pakistani steel and iron industry also contracted by 4 percent in 2023 versus growth of 16.6 percent registered in 2022. As a consequence, local sales volume dampened by 38 percent. Export sales didn’t impress either and underperformed compared to the previous year. Curtailed demand and sales volume reduced the cost of sales by 29.60 percent year-on-year which resulted in a rise in GP margin to 12.77 percent in 2023. Distribution expense shrank by 45.75 percent in 2023 because of lower freight charges on account of lesser off-take. Administrative expense inched up by a mere 1.96 percent in 2023 due to higher payroll expense on account of inflationary pressure. Other expense plummeted by 29.58 percent in 2023 due to lesser provisioning done for WWF and WPPF. Other income slid by 5.28 percent in 2023 on the basis of lesser dividend income from associated company and lesser exchange gain. Operating profit declined by 4.63 percent year-on-year in 2023, yet OP margin climbed up to 17.23 percent. 46.54 percent higher finance cost was the result of high discount rate. The company managed its cash flows and working capital quite well during the year and didn’t require additional borrowings. This is evident in its strong liquidity position. The company’s gearing level also improved from 60 percent in the past six years to 55 percent in 2023. INIL’s net profit grew by 5.44 percent in 2023 to clock in at Rs.2272.94 million with EPS of Rs.17.23 and NP margin of 8.50 percent.
In 2024, INIL’s net sales posted a marginal year-on-year growth of 9.02 percent to clock in at Rs.29,203.14 million. Import restrictions continued during the year resulting in 37.4 percent contraction in the local automobile industry. Local iron & steel industry also shrank by 2.2 percent in 2024 due to weaker demand from auto and construction related industries. INIL’s local sales volumes slid by 2.3 percent in 2024, however, sales proceeds inched up by 12 percent during the year. Export sales proceeds posted a marginal growth of 4 percent in 2024 due to dampened demand in the construction sector of the company’s key export markets. High energy and conversion cost resulted in 8.56 percent spike in cost of sales in 2024. This resulted in 12.19 percent growth in gross profit in 2024 with GP margin slightly inching up to 13.15 percent. Distribution expense inched down by 3.39 percent in 2024 due to lower sales volume resulting in thinner freight & forwarding charges. Administrative expense spiked by 21.86 percent in 2024 on account of higher payroll expense, vehicle, travel & conveyance charges as well as legal & professional charges incurred during the year. Other expense slid by 19.89 percent in 2024 due to lower profit related provisioning and donations. Other income also dampened by 56.26 percent in 2024 due to lower dividend income from International Steels Limited and IIL Australia Pty. Limited as well as exchange loss incurred during the year. Operating profit dwindled by 28.95 percent in 2024 with OP margin falling down to 11.23 percent. Finance cost dropped by 14.97 percent in 2024 due to better working capital management. This resulted in a decline in the company’s gearing ratio from its historic level of 60 percent in the previous years to 42 percent in 2024. INIL’s net profit slumped by 35.19 percent to clock in at Rs.1473.13 million in 2024. This translated into EPS of Rs.11.17 and NP margin of 5.04 percent in 2024.
In 2025, net sales of the company plummeted by 14 percent to clock in at Rs.25,096.32 million. This was mainly due to trade protection measures implemented by the major economies of the world which resulted in significant volatility in the raw material prices. Local sales crashed by 10 percent in 2025 to clock in at Rs.22 billion. This was due to misuse of the tax exemptions granted to the FATA/PATA region. However, these exemptions are scheduled to be removed over the span of next four years. Export sales of the company shrank by 36 percent to clock in at Rs.3.1 billion. This was due to 50 percent tariff imposed by the US government on steel imports which created oversupply and acute price volatility in the global market. Cost of sales plummeted by 13.46 percent in 2025 due to reduction in sales volume. However, with negative price variations, the company recorded 18 percent decline in its gross profit in 2025 with GP margin falling down to 12.54 percent. Lower freight charges on account of abridged sales volume was partially offset by higher advertising expense and increased salaries of sales force. This culminated into a marginal 1.78 percent reduction in selling & distribution expense in 2025. Administrative expense ticked up by only 0.531 percent in 2025 due to higher payroll expense on account of inflationary pressure. INIL streamlined its workforce from 930 employees in 2024 to 909 employees in 2025. Other expense spiked by 7.45 percent in 2025 due to increased auditor remuneration and profit related provisioning. Other income deteriorated by 36 percent in 2025 due to massive decline in income from subsidiaries – International Steels Limited and Chinoy Engineering & Construction Solutions Limited. As against loss allowance recorded on trade receivables for the past three years, INIL recorded a reversal of provision worth Rs.2.12 million in 2025. Operating profit contracted by 33.68 percent in 2025 with OP margin falling down to 8.66 percent. Finance cost lessened by 58.63 percent in 2025 due to monetary easing and better working capital management. INIL posted net profit of Rs.1104.32 million in 2025, down 25 percent year-on-year. This translated into EPS of Rs.8.37 and NP margin of 4.4 percent. OP and NP margin recorded by the company in 2025 were the lowest since 2021.
Recent Performance (9MFY26)
INIL seems to have made a strong comeback in FY26 as evident by 16.07 percent enlargement in its topline in 9MFY26. Net sales were recorded at Rs.21,653.062 million in 9MFY26. Both local and export sales progressed in 9MFY26. However, local sales continued to be the major growth driver due to greater infrastructure spending and increased construction activity in the country. Sales volume clocked in at 84,529 MT in 9MFY26, up 42.50 percent year-on-year. Cost of sales mounted by 16.54 percent in 9MFY26. One of the factors for the increased sot was the imposition of off-the-grid levy of Rs.36.11 million imposed on the captive power plants during the period. Elevated energy, freight and raw material cost due to geopolitical tensions in the Middle East also inflated cost during the period. While gross profit ticked up by 12.69 percent in 9MFY26, GP margin clocked in at 11.96 percent against GP margin of 12.32 percent recorded in 9MFY25. Growing operations, improved sales volume and inflationary pressure resulted in 34.26 percent increase in distribution expense and 24.74 percent increase in administrative expense in 9MFY26. Other expense ticked down by 4.12 percent in 9MFY26. Other income posted a tremendous growth of 70 percent to clock in at Rs.1271.61 million in 9MFY26. This was on the back of improved dividend income from associated and subsidiary companies. Just like all the years under review, other income completely wiped off other expense in 9MFY26. Reversal of loss allowance on trade debts also increased by 293.75 percent in 9MFY26. Operating profit improved by 24.92 percent in 9MFY26 with OP margin clocking in at 10.10 percent versus OP margin of 9.34 percent recorded in 9MFY25. Finance cost lowered by 1.54 percent in 9MFY26 due to monetary easing. Net profit strengthened by 50 percent to clock in at Rs.1210.095 million in 9MFY26 with EPS of Rs.9.18 versus EPS of Rs.6.12 recorded in 9MFY25. NP margin also strengthened from 4.33 percent in 9MFY25 to 5.59 percent in 9MFY26.
Future Outlook
In the local market, increase in infrastructure activity will provide impetus for improved demand in the steel sector. In the global market, the demand is expected to remain lethargic due to weaker demand from key markets like China.
On the brighter side, the company is striving to diversify its product mix by venturing into high-value stainless steel and uPVC segments. The company has also recently invested in Chinoy Engineering & Construction Solutions Limited acquiring 34 percent stake to participate in Reko Diq construction.
It has also established INIL Europe to enhance its geographical presence. Furthermore, the company is also seeking to attain operational efficiency by installing solar power plant across its manufacturing sites. In order to diversify its operations, the company has decided to venture into mining opportunities in Baluchistan and KPK through consortium with operations managed via joint venture.
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