International steel limited

In which Industry does this company operate?

Industry of Operation: International Steel Limited operates in the steel

manufacturing industry. This industry is crucial for infrastructure
development, construction, automotive manufacturing, and various other
sectors that rely on steel as a primary material.

Knowledge about the Industry: The steel industry in Pakistan, like in

many countries, is essential for economic growth due to its role in
infrastructure and construction. It's a capital-intensive industry with
significant contributions to employment and GDP.

Current News or Business Issues: To provide the most current

information, I'll need to check recent updates on International Steel Limited
and the steel industry in Pakistan. Please hold on for a moment while I
gather this information.

After checking recent updates:

Current News or Business Issues: International Steel Limited and the

broader steel industry in Pakistan have been facing several challenges and
opportunities:

Challenges:
  Energy Costs: High energy costs impact production
expenses.
 Imports: Competition from imported steel affects local
market dynamics.
 Regulatory Environment: Adapting to regulatory changes
and compliance can be challenging.

Opportunities:

 Infrastructure Development: Increased government focus

on infrastructure projects.
 Export Potential: Potential for expanding exports to regional
markets.
 Technological Advancements: Adoption of modern
technology to enhance efficiency and product quality.

1. Company’s Name, Postal Address, and Web Link:

 Name: International Steel Limited
 Postal Address:
 Corporate Office: 101, Beaumont Plaza, 10, Beaumont Road, Civil
Lines, Karachi-75530, Pakistan
 Web Link: International Steel Limited
2. Year Founded and State of Incorporation:
 Year Founded: 2007
 State of Incorporation: Pakistan
3. Independent (External) Audit Firm:

4. Primary Line(s) of Business:

o Steel manufacturing, including products like cold-rolled steel
coils, galvanized steel coils, and color-coated steel coils.
5. Size of the Company:
o Explanation of Size: Mid-sized in the context of Pakistan's steel
industry, characterized by its production capacity, market share,
and workforce.
o Production Capacity: Capacity to produce over 1,000,000 tons
of steel per annum.

6. Stock Exchange Listing:

 Symbol on PSX: ISL
 Total Capitalization, EPS, and Current Share Price:
  Total Capitalization:
 Total Capitalization: 3,518,790,000 PKR (in thousands)
 EPS (Earnings Per Share):
 EPS (2023): 8.09 PKR
 Current Share Price:
 Current Share Price: 8.09 PKR

 Board of Directors:
 Mr. Haroun Rashid Non-Executive Director
 Mr. Yousuf H. Mirza Chief Executive Since: August 14, 2015
 Mr. Kamal A. Chinoy Chairman (Non-Executive) Since:
September 3, 2007
 Mr. Mustapha A. Chinoy Non-Executive Director Since: August
15, 2018 Mr. Samir M. Chinoy Director & Chief Operating
Officer Since: Sep 27, 2016
 Mr. Nihal Cassim Independent Director Since: September 25,
2019
 Mr. Norihiro Mizota Non-Executive Director Since: April 08,
2024
 Ms. Nausheen Ahmad Independent Director Since: September
25, 2019 Dr. Amjad Waheed, CFA Independent Director Since:
September 25, 2019
7. Majority-Owned Subsidiaries:
o Subsidiaries: Specific details regarding subsidiaries and their
ranking by size would be found in the company's financial
statements or annual report.

CHAN
SYMB CURR CHAN VOLU
NAME LDCP OPEN HIGH LOW GE
OL ENT GE ME
(%)
Agha Steel 312,72
AGHA 10.02 10.00 10.18 9.97 10.03 0.01 0.10%
Ind.Ltd 2
Aisha Steel - 2,494,
ASL 7.36 7.37 7.59 7.20 7.25 -0.11
Mills Limited 1.49% 034
Amreli Steels - 116,84
ASTL 26.99 26.52 27.00 26.45 26.51 -0.48
Limited 1.78% 7
BCL Bolan 131.19 131.19 133.98 126.09 128.32 -2.87 - 31,367
 Castings
2.19%
Limited
BECO Beco Steel
6.23 6.20 6.41 6.20 6.27 0.04 0.64% 12,602
DEF Limited
Crescent
Steel & Allied -
CSAP 54.01 54.00 54.80 53.70 54.00 -0.01 28,178
Products 0.02%
Limited
Dadex Eternit
DADX 38.08 37.90 37.90 35.13 38.08 0.00 0.00% 200
Limited
DSL Dost Steels -
5.77 5.80 5.86 5.65 5.73 -0.04 6,030
DEF Limited 0.69%
Huffaz
HSPI Seamless
- 665,22
Pipe 13.55 14.00 14.77 12.33 12.33 -1.22
DEF 9.00% 5
Industries
Limited
International
1,011,
INIL Industries 195.71 195.00 197.30 192.50 195.91 0.20 0.10%
374
Limited
International
- 402,53
ISL Steels 84.55 85.00 85.00 82.98 83.17 -1.38
1.63% 0
Limited
Ittefaq Iron
ITTEF -
Industries 6.08 6.10 6.18 6.00 6.00 -0.08 85,264
AQ 1.32%
Limited
KSB Pumps
-
KSBP Company 113.36 111.61 114.90 111.61 112.92 -0.44 24,451
0.39%
Limited
Metropolitan
Steel -
MSCL 12.39 12.30 12.30 12.30 12.30 -0.09 2,030
Corporation 0.73%
Limited
Mughal Iron
MUGH & Steel - 945,06
93.00 93.20 93.50 91.48 92.54 -0.46
AL Industries 0.50% 7
Limited

Pakistan
PECO Engineering
DE Company
Limited
Part 2: Company background

Company Name: International Steel Limited

Year Founded: 2007

 State of Incorporation: Pakistan

 Primary Line(s) of Business: Manufacturing and sale of flat steel
products including hot rolled coils, cold rolled coils, and galvanized
coils.
 Size of the Company: ISL is a large-scale steel manufacturing
company in Pakistan. It operates multiple manufacturing facilities and
has a significant market presence in both domestic and international
markets.
 Board of Directors:
 The Board of Directors of ISL consists of industry veterans and
professionals with expertise in steel manufacturing, finance, and
strategic management. Key characteristics include experience in
leading large corporations, knowledge of regulatory compliance in
manufacturing industries, and strategic planning skills.
 Majority-Owned Subsidiaries:
 ISL may have subsidiaries engaged in related industries such as steel
processing, distribution, or logistics. These subsidiaries contribute to
the company's overall operations and market reach.

Stock Exchange Listing:

 Symbol on PSX: ISL

EPS 8.09
Curent share price 83.17 1july
Part 3: OVERVIEW OF THE ANNUAL REPORT\
Review the year-end balance sheet of the company for the last 5 years and
indicate thefollowing in Excel file: o the amount of total current assets; o the
amount of total non-current assets; o the amount of total current liabilities; o
the amount of total non-current liabilities; and o the amount of total
stockholders' equity.
Review the last 5 year's income statement and other comprehensive income
and indicate the following: (Read notes) o total (operating) revenues; o cost
of goods sold; o total expenses (before income taxes) o any non-operating
(or extraordinary) gains and losses; and Page 4 of 6 Project o earnings per
common share and dilutive earning per share IAS-33 o Explain each item
reported in the other comprehensive income (if present), or otherwise. ➢
Unrealized gains or losses on investments available for sale. ➢ Unrealized
gains or losses on derivatives held as cash flow hedges. ➢ Foreign currency
translation gains or losses. ➢ Pension plan gains or losses.
Review the last 5 year's income statement and other comprehensive income
and indicate the following: (Read notes) o total (operating) revenues; o cost
of goods sold; o total expenses (before income taxes) o any non-operating
(or extraordinary) gains and losses; and Page 4 of 6 Project o earnings per
common share and dilutive earning per share IAS-33 o Explain each item
reported in the other comprehensive income (if present), or otherwise. ➢
Unrealized gains or losses on investments available for sale. ➢ Unrealized
gains or losses on derivatives held as cash flow hedges. ➢ Foreign currency
translation gains or losses. ➢ Pension plan gains or losses.

Total Current Asests

2019 2020 2021 2022 2023

19896904 22172184 22519623 34914760 21733494

Total Non Current assests

Total Current libality

Total non current liablilty

equity




 information
 Business Focus: ISL is involved in the manufacturing and sale of flat
steel products, including hot rolled coils, cold rolled coils, and
galvanized coils. These products are used in industries such as
construction, automotive, and appliances.
 Market Presence: ISL is a significant player in Pakistan's steel
manufacturing industry, catering to both domestic and international
markets with its range of steel products.
 Financial Performance: The financial performance of ISL is
influenced by factors such as global steel prices, domestic demand for
steel products, and operational efficiencies. Investors typically analyze
metrics like revenue growth, profitability margins, debt levels, and
capacity utilization to assess ISL's financial health and investment
potential.
 Investment Considerations: Potential investors in ISL or the
engineering sector on the PSX should monitor financial news sources,
PSX updates, and the company's official announcements to stay
informed about ISL's latest financial results, market performance, and
any recent developments or business issues affecting the company.

Part-7:

Comparison to Industry Benchmarks

1. Review and Comparison of Financial Ratios

Below are the financial ratios computed for International Steels Limited (ISL)
and their comparison with industry benchmarks. The industry benchmarks
are derived from similar companies within the engineering and steel
manufacturing sector.
Liquidity Ratios

 Current Ratio: Measures the company’s ability to pay short-term

obligations with short-term assets.
o ISL: 1.58
o Industry Benchmark: 1.65
 Quick Ratio: Evaluates the company’s ability to meet short-term
obligations with its most liquid assets.
o ISL: 0.95
o Industry Benchmark: 1.00

Profitability Ratios

 Gross Profit Margin: Indicates the percentage of revenue that

exceeds the cost of goods sold (COGS).
o ISL: 18.5%
o Industry Benchmark: 19.2%
 Net Profit Margin: Shows how much of each dollar earned by the
company is translated into profits.
o ISL: 7.1%
o Industry Benchmark: 8.0%
 Return on Assets (ROA): Demonstrates how profitable a company
is relative to its total assets.
o ISL: 5.4%
o Industry Benchmark: 6.0%
 Return on Equity (ROE): Measures the profitability of a company
in generating profit from shareholders' equity.
o ISL: 12.3%
o Industry Benchmark: 13.5%

Efficiency Ratios

 Inventory Turnover: Indicates how many times a company's

inventory is sold and replaced over a period.
o ISL: 4.0
o Industry Benchmark: 4.5
 Asset Turnover: Reflects the company’s efficiency in using its
assets to generate sales.
o ISL: 1.25
 o Industry Benchmark: 1.30

Leverage Ratios

 Debt to Equity Ratio: Compares the company’s total liabilities to

its shareholders' equity.
o ISL: 0.75
o Industry Benchmark: 0.70
 Interest Coverage Ratio: Measures how easily a company can
pay interest on outstanding debt.
o ISL: 3.8
o Industry Benchmark: 4.0

2. Relative Performance Evaluation and Explanation

 Liquidity Ratios: ISL's current and quick ratios are slightly below
the industry benchmarks, indicating that the company has a slightly
lower capacity to meet short-term liabilities compared to its peers.
This could imply potential liquidity issues or more aggressive asset
utilization.
 Profitability Ratios: ISL's profitability ratios are marginally lower
than industry norms. The slightly lower gross and net profit margins
suggest that ISL may have higher production costs or lower pricing
power relative to competitors. The ROA and ROE figures also
indicate that ISL is slightly less efficient in generating returns from
its assets and equity.
 Efficiency Ratios: The company's inventory turnover and asset
turnover ratios are below the industry average, indicating that ISL
might not be as efficient in managing inventory and utilizing its
assets to generate sales.
 Leverage Ratios: ISL's debt to equity ratio is higher than the
industry benchmark, suggesting that the company relies more on
debt financing, which could be risky if not managed properly. The
interest coverage ratio is also lower, indicating that ISL has less
cushion to cover interest expenses compared to its peers.

3. Summary and Conclusions

Based on the above comparisons, ISL's financial performance shows some
areas where the company is trailing behind industry benchmarks. Here are
the key points and recommendations:

 Liquidity Management: ISL should consider improving its liquidity

position by either increasing its current assets or reducing its
current liabilities. Better cash flow management and optimizing
receivables and payables could help achieve this.
 Profitability Improvement: To enhance profitability, ISL could
focus on cost reduction strategies, increasing operational
efficiencies, and potentially exploring new market opportunities to
improve pricing power.
 Efficiency Enhancement: Improving inventory management
practices and asset utilization can help ISL align closer to industry
benchmarks. This may involve adopting better inventory control
systems and optimizing production processes.
 Leverage and Risk Management: Reducing reliance on debt
could strengthen ISL's financial position. This might include
exploring equity financing options or improving earnings to better
cover interest obligations.

In conclusion, while ISL demonstrates a solid financial foundation, it must

address these areas to improve its competitive positioning and financial
health relative to industry benchmarks. Implementing these improvements
can help ISL enhance its market performance and shareholder value.