INTERNATIONAL INDUSTRIES LIMITED (2007-08)
Sep 29 - Oct 12, 2008
International Industries Limited was incorporated in Pakistan in 1948 and is quoted on the Karachi, Lahore and Islamabad Stock Exchanges in Pakistan.
The company is a pipe manufacturing unit and produces hot and cold rolled based steel pipes and tubes for bicycles, transformers, fans, tents, furniture and other mechanical and general engineering purposes.
The company also produces Galvanized pipes for use in transmission of water, oil, natural gas and other fluids.
The company has its own Cold Rolling Mill Complex with a maximum strip width of 525 mm.
The Company produces Polyethylene Water pipe (PE 80 & PE 100), Polyethylene Line Pipe and Polyethylene Duct.
The company is the market leader in all segments of pipes within the country having a major share of the market. The company remains the leading exporter of welded steel pipes and tubes from Pakistan and is selling its products in all continents.
International Industries Limited is certified with five International Standards, which are as follows:
* ISO 9001: (Quality Management System), since 1997
* ISO 14001: (Environmental Management System), since 2000
* API Specification Q1 Æ & 5L, since 2000
* API Specification Q1 Æ & 15LE, since 2006
* OHSAS 18001: (Occupational Health & Safety Management System), since 2007
The company has received the following awards during the year:
* "Best Export Performance Trophy for Export of Engineering Products - Mechanical" in 2006-07 (8th Consecutive year).
* "Top 25 Companies" in 2007 on the Karachi Stock Exchange (7th Consecutive year)
* Best Corporate Report Award in 2007 - 2nd position in Engineering. (2nd Consecutive year)
* Environment Excellence Award for 2008 by National Forum for Environment and Health.
Total sales crossed 180,000 tons with export sales crossing 50,000 tons for the first time in company's history. Overall sales have exhibited a consistent growth over the years. Domestic sales, however, of galvanized pipes registered a small decline.
Despite political instability and doubling of steel costs the company managed to increase sales by 24.4% to a total Rs.12.07 billion and export sales by 54% to a value of US $ 47 million.
The company contributed Rs.1,940 million to the national exchequer in the form of duties and taxes. The company earned after tax profit of Rs.705 million which is 15% higher than Rs.613 million of the previous year in spite of an exponential increase in costs. This translated into an earning of Rs.8.47 per share.
Sustained financial results enabled profitability growth and provided superior shareholder value. Financial statements depict an organised investment plan for the success of a flexible business enterprise.
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The economy is confronting the challenges of high oil and food prices, rising interest rates and a trade deficit on current account. Major fluctuation in steel price has been the case in the last six months.
Opportunities exist in infrastructure development and housing construction. Export markets also provide better opportunities than in the past.
Doubling steel prices in the beginning and end of fiscal year placed a considerable strain on the liquidity of the company. Increased interest rates also adversely affect margins.
The company has undertaken a project to produce Cold Rolled and Galvanized Steel Flat Products. The project cost is estimated at Rs.8 billion with a production capacity of 250,000 tons per annum. This project will be located at Landhi, Karachi and is expected to be commissioned in July 2010. A loan agreement has been signed with IFC under which a loan equivalent to Rs.400 million will be given.
The company has decided to expand Polyethylene pipe division which is being relocated on a 10 acre site already purchased located alongside the proposed Cold Rolled and Metal coated steel sheet project. By the 3rd quarter of this financial year the Company will launch a PEX solution for hot water.