Hifsa Raja

Ittefaq Iron Industries Limited’s sales climbed 100% to Rs8.67 billion in the first nine months of the Fiscal Year 2021-22 (9MFY22) compared with Rs4.33 billion in the corresponding period of the previous fiscal year, reports WealthPK.

The gross profit stood at Rs526 million in 9MFY22 compared with Rs423 million in the corresponding period of the previous year, with an increase of 24%.

The profit-before-taxation in 9MFY22 stood at Rs297 million compared with Rs262 million in 9MFY21, with an increase of 13%.

The after-tax profit increased 18% to Rs226 million in 9MFY22 from Rs191 million in 9MFY21.

The Earnings Per Share (EPS) stood at Rs1.57 in 9MFY22 compared with Rs1.33 in the corresponding period of FY21, showing a decline of 18%.

As of June 30, 2021, directors, their spouse(s), and minor children owned 8.16% of the total shares; banks, development financial institutions, and non-banking financial institutions 1.73%; modarabas and mutual funds 6.89%; general public (local) 79.15%; general public (foreign) 0.001%; stock exchange companies 3.99% and ‘others’ 0.06%.

Financial performance

During the fiscal year 2020-21, the company generated sales of Rs6.20 billion against Rs3.38 billion in 2019-20, registering an increase of 83%. The gross profit for FY21 was Rs645 million, registering a growth of 3579% from Rs17 million in FY20. The profit-before-tax for FY21 was Rs439 million compared to Rs165 million in FY20, showing an increase of 366%. Similarly, the profit-after-tax for FY21 was Rs266 million compared to Rs212 million in FY20, showing an increase of 225%.

The EPS was Rs2.25 in 2018. It dipped to Rs1.37 in 2019 and minus Rs1.47 in 2020 before going up to Rs1.85 in 2021.

Profit or loss over the years

Profitability: The gross profit and operating profit remained depressed in 2020 but the profitability increased in 2021.

Ittefaq Iron Industries Limited was incorporated on February 20, 2004, and converted into a public company on January 5, 2017. The company changed its name from Ittefaq Sons Private Limited to Ittefaq Iron Industries Limited on February 9, 2017. The principal activity of the company is the manufacturing of iron bars and girders.

Credit : Independent News Pakistan-WealthPk