International Industries Limited (INIL) reported Consolidated earnings per share of PKR 6.82 for FY25, compared to earnings per share of PKR 16.44 in FY24. Furthermore, in 4QFY25, the company reported earnings per share of PKR 2.71, compared to earnings per share of PKR 3.54 in the same period last year (SPLY). In carbon steel pipes (up to 12 inches), INIL commands roughly 30% share. In stainless steel pipes, market share is around 10%. Within polymer pipes, INIL is a key player in PPRC (20% share) and gas transmission HDPE/MDPE pipes (30–35% share), while its newly launched UPVC segment is still in early stages. Exports remain pressured, but INIL retains a strong presence in Sri Lanka and is now establishing footholds in Europe.
Chinoy Engineering and Construction Limited has begun work on Reko Diq, with INIL supplying galvanized and polymer pipes, though management emphasized that volumes from this project will not be material until after 2028 when operations scale up. Exports witnessed 50% decline mainly due to US tariffs and high freight costs; management actively exploring new markets and near-shoring strategies.
Capacity utilization remained ~30%, low due to weak demand and fixed cost absorption. CRC sourcing entails ~60% domestic (from ISL), ~40% imported, with imports only for specialized grades not produced locally. Total pipe market size is ~600k tons, where INIL holds 30% share in steel, 10% in stainless, ~35% in polymer gas pipes.
Management highlighted that INIL’s energy mix comprises of 30% solar, 30-35% gas and balance from grid. Management noted that Australia has signed free trade agreements (FTAs) with key markets like Vietnam and is close to signing one with the UAE. Under these FTAs, competing countries can export duty-free, while Pakistan faces a 5% duty, putting INIL at a structural disadvantage. Going forward for FY26, management expects domestic steel demand to grow 4–5%, contingent on continued macro stability and absence of external shocks. In polymers, a 3-4% expected growth is tied to the government’s decision to reinstate new gas connections for residential and commercial consumers; if implemented, HDPE pipe volumes could accelerate meaningfully.
Important Disclosures
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