Engineering: INTERNATIONAL INDUSTRIES LIMITED - Half Year Ended December 31 2006
The company was incorporated in Pakistan in 1948 and is listed on the Karachi, Lahore and Islamabad stock exchanges. International Industries Limited (IIL) belongs to the engineering sector of Pakistan and holds excellent reputation for its product in terms of quality.
It is UKAS quality management certified company for both ISO 9001 and ISO 14001 standards. IIL manufactures cold rolled steel strips, steel tubes and galvanised polyethylene pipes.
The registered office of the company is situated at 101, Beaumont Plaza, 10-Beaumont Road Karachi and its manufacturing facilities are also located in Karachi in one of the oldest industrial zones at Landhi Industrial Area.
It has large fixed asset base amounting to Rs 2.535 billion (book value). The company is making continuous addition in the manufacturing facilities. During six months ended on December 31 2006, (HYD 06-07), the period under review its fixed capital expenditure amounted to Rs 789.71 million as compared to Rs 359.57 million booked on June 30, 2006, the closing date of last financial year 2005-2006.
The directors of the company informed about further expansion in asset base and acquisition of land. The fourth galvanizing plant was commissioned and its utilization will start in the following quarters.
The fourth generating set of one Megawatt was commissioned in December 2006 and is functioning satisfactorily. According to the directors report the land, where the company's plant is located, has no room for further expansion. Therefore, the company bought land at a close proximity to the existing factory so that future expansions and diversion can be undertaken.
The directors rejoiced for winning the Karachi Stock Exchange Top 25 Companies Award for the fifth year running.
As regards operating performance, during HYD 06-07, the company generated sales in terms of value at Rs 4.650 billion (HYD 05-06: Rs 3.730 billion), registering 24.6% growth as compared to the same period last year (SPLY). On the other hand, the growth rate in the gross profit was much higher than the growth rate in sales evidencing higher selling price per unit, higher volume sales and/or lesser pressure on the input costs. Gross profit increased by 41.6% to Rs 742.36 million in HYD 06-07 from Rs 524.12 million in the SPLY and gross profit margin (gross profit to sales ratio) was also on the higher side in the period under review.
The operating profit was 53% higher while net profit after taxation was 48.1% higher at Rs 327.61 million (HYD 05-06: Rs 221.13 million).
As regards international scenario for raw materials of the company, the international steel prices continue to remain high and the zinc prices like all base metals held their unprecedented high levels and appear to be firmly entrenched. Despite varied forecasts, both the raw materials are maintaining their high levels which place margins under pressure and restrict volume growth particularly in export market.
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Performance Statistics (Mln Rs)
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Balance Sheet ---As At--- December 31 June 30
2006 2006
Un-audited Audited
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Share Capital Paid-up: 569.10 427.89
Reserves: 1,107.96 1,042.90
Shareholders Equity: 1,677.06 1,470.79
Surplus on Revaluation
of Fixed Assets: 521.79 528.81
L.T. Debts: 812.50 275.00
Deferred Taxation: 158.30 160.56
Current Liabilities: 6,020.49 2,812.13
Fixed Assets Tangible: 2,535.45 1,837.05
Intangible Assets: 7.27 4.86
L.T. Deposits: 3.88 3.88
Current Assets: 6,643.54 3,401.50
Total Assets: 9,190.14 5,247.29
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Profit & Loss A/c for Half Year Ended
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---December 31--- 2006 2005
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Sales: 4,649.65 3,730.37
Gross Profit: 742.36 524.12
Operation Profit: 568.53 370.97
Other (Charges)/Income-Net: (4.50) 3.25
Financial (Charges): (129.42) (74.27)
Profit Before Taxation: 434.61 299.96
Profit After Taxation: 327.61 221.13
Earnings Per Share (Rs): 5.76 3.89
Debt/Equity Ratio: 27:73 12:88
Current Ratio: 1.10 1.20
Gross Profit Margin (%): 15.97 14.05
Net Profit Margin (%): 7.05 5.92
R.O.A. (%): 3.56 4.21
R.O.E. (%): 19.53 15.03
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COMPANY INFORMATION: Chairman: J.R. Rahim; Managing Director & Chief Executive: Towfiq H. Chinoy; Chief Financial Officer: Mohammed H. Walli; Secretary: Liquat Ali Tejani; Registered Office: 101, Beaumont Plaza Karachi 75530; Works: Landhi Industrial Area Karachi 75120; Website URL: not reported.