International Industries : INIL | International Industries Limited - Transmission of Quarterly Report for the Period Ended 2022-09-30

Mr. Kamal A. Chinoy

Mr. Mustapha A. Chinoy

Mrs. Selina Rashid Khan

Suite 210-5800

Ambler Drive, Mississauga

ONL4W4J4, Canada

INTERNATIONAL INDUSTRIES LIMITED 03

For the period ended September 30, 2022

The Directors of your Company are pleased to present the financial statements for the period ended September 30, 2022.

Unconsolidated sales revenue for the period stood at Rs. 6.3 Bn, which was 29% lower than in the same period last year. Domestic sales volumes shrunk by 33% as the economy remained subdued as a consequence of stringent fiscal measures adopted by the government, further exacerbated by challenges posed by the aftermath of the catastrophic floods as well as political instability. Moreover, business appetite of domestic institutional customers, especially gas companies, also remained low. The global economic slowdown caused exports to decline by 49%. The polymer segment saw volumes drop by 36%, as curtailed infrastructure projects and the precarious flood situation negatively impacted demand. On a positive note, our Construction Solutions business landed its first project for the provision of form work and shoring props, in collaboration with a globally respected German company.

Unconsolidated Profit after Tax (PAT) for the period under review was Rs. 1.037 Bn (EPS 7.86), compared to Rs. 1.762 Bn (EPS 13.36) during the first quarter of last year. This includes net dividend income of PKR 925 Mn from our subsidiary and associate companies.

Dampened demand and depressed economic conditions also negatively impacted our major subsidiary, International Steels Limited (ISL), which reported Net Sales Revenue of Rs. 16.5 Bn which was down 32% from Rs. 24.5 Bn over the same period last year. Profit after Tax (PAT) of Rs. 448 Mn (EPS 1.03) was down 88% from Rs. 3,688 Mn (EPS 6.13) during the comparative period.

It is hoped that domestic demand will gain some pace as the political uncertainty subsides and the IMF and other donor programs are revived. General elections scheduled fornext year may also provide a much needed fillip to demand as pending infrastructure projects are restarted. The continued imposition of a 100% cash margin for Letters of Credit and Bank Guarantees and a policy interest rate in excess of 15% will continue to keep financial costs high and working capital requirements under stress. Nonetheless, it is hoped that, as the economic and political conditions improve and these pressures ease out, your Company is able to take advantage of improved economic situations.

We extend our gratitude to all stakeholders for their continued support and look forward to a productive remainder of the financial year.

For & on behalf of

International Industries Limited

Kamal A. Chinoy

Chairman

Karachi.

October 27, 2022

INTERNATIONAL INDUSTRIES LIMITED 04