Shahzad Textile Mills Limited · PSX:SZTM
Shahzad Textile Mills — FY2023 Earnings Presentation
26 slides from Shahzad Textile Mills's earnings presentation, Nov 23, 2023
Slide 1: Letter to Pakistan Stock Exchange submitting CBS presentation
SHAHZAD TEXTILE. THE GENERAL MANAGER Date: 22-11-2023 Pakistan Stock Exchange Limited, Stock Exchange Building, Stock Exchange Road, KARACHI-74000 Subject: Holding of Corporate Briefing Session of Shahzad Textile Mills Limited, FY 2023 in Compliance with the requirements of Clause 5.7.3 of the Rule
Slide 2: Shahzad Textile Mills Limited Corporate Briefing
SHAHZAD TEXTILE MILLS LIMITED Corporate Briefing For the year ended June 30, 2023 Corporate Briefing Session 2023 – November 23, 2023
Slide 3: Outlines
OUTLINES • Company Brief • Strategic & Operational Development • Financial Details • Question & Answer Corporate Briefing Session 2023 – November 23, 2023
Slide 4: Company Brief
COMPANY BRIEF Corporate Briefing Session 2023 – November 23, 2023
Slide 5: Company Brief
COMPANY BRIEF • ORGANIZATION HISTORY Shahzad Textile Mills Limited (the Company) was incorporated in Pakistan on October 24, 1978 as a Public Limited Company under the Companies Act, 1913 (now the Companies Act, 2017). The shares of the Company are quoted on Pakistan Stock Exchange. The Company is d
Slide 6: Spinning Segment
SPINNING SEGMENT Current Plant Capacity & Production – June 2023 Spindles June- 2023 Plant Capacity Actual Production (20/S) (20/S) 70,428 41,732,689 701,198 (Bags) 31,806,325 (Kgs.) (Kgs.) The Company has been operating in Spinning segment for more than 45 years since 1978. And producing all types
Slide 7: Socks Segment
SOCKS SEGMENT No. of Machines Installed Capacity Utilized Capacity Dozen Socks (p.a.) Dozen Socks (p.a.) 187 2,398,387 942,838 • The Management is continuously evaluating the potential of expansion in Socks Segment by negotiating with existing banks and own sources. • Marketing trips are performed a
Slide 8: Machinery Visuals
MACHINERY VISUALS Plant facility comprises of state of the art machines i.e. Lonati Knitting Machines of 120 & 144 Needles, Sock Linking Rosso, Toe Closing Rosso Lonati Corporate Briefing Session 2023 – November 21, 2023
Slide 9: Socks Products
SOCKS PRODUCTS Plant facility has capability to produce various types of socks i.e. • Work-wear Socks • Athletic Socks • Diabetic Socks • Thermal Socks • Formal Dress Socks • All other kind of socks Corporate Briefing Session 2023 – November 23, 2023
Slide 10: Rating from PACRA
RATING FROM PACRA Rating Category Long Term Rating Short Term Rating Rating A- A2 • Above rating is as per latest press release on April 11, 2023 by PACRA • This rating is maintained for last four releases by PACRA shows stable corporate economic and financial condition Corporate Briefing Session 20
Slide 11: Corporate Role in Socio Economic Development
Corporate Role in Socio Economic Development No. of Workers and Employees Permanent Contractual Total (Numbers) H.O Mills H.O Mills Employees as at year end 29 1,851 9 110 1,999 Average employees during the 29 2,037 9 110 2,185 year Corporate Briefing Session 2023 – November 23, 2023
Slide 12: Strategic & Operational Development
STRATEGIC & OPERATIONAL DEVELOPMENT Corporate Briefing Session 2023 – November 23, 2023
Slide 13: Financing Facilities
FINANCING FACILITIES LTFF • LONG TERM FINANCING FACILITY – LTFF • For Socks Unit • Sanctioned Facility for Socks Machinery Rs. 345 million • Out Standing Facility till June-2023 Rs. 317.792 million • Above LTFF facility is for 7 years with 1 year grace period, its repayment started from April 2021 a
Slide 14: SBP Refinance Scheme for Salaries & Wages
SBP Refinance Scheme for Salaries & Wages • TF Facility (Payroll Refinance) • Utilized Facility of Rs. 93.72 million was availed in March 2020 for payment of salaries & wages in the wake of COVID-19 lockdown • Total liability of Rs. 23.432 million has been paid during the year and hence no amount ou
Slide 15: Short Term Financing Facilities
Short Term Financing Facilities • The Company has obtained various funded and unfunded financial facilities from different banks for a total sanctioned limit of Rs. 2,484 million towards working capital requirements, retirement of local and foreign LCs and discounting of local bills / receivables. •
Slide 16: Strategic & Operational Development
STRATEGIC & OPERATIONAL DEVELOPMENT • SOLAR Power Project • SOCKS Unit Corporate Briefing Session 2023 – November 23, 2023
Slide 17: Solar Power Project
SOLAR POWER PROJECT (300KW, Project Cost Rs. 26.63 million, June-2019) KWH Produced Year during the Year Saving Amount in PKR 2019-20 436,171 4,710,943 2020-21 434,152 5,080,452 2021-22 424,272 6,450,980 2022-23 400,671 9,655,080 TOTAL 1,695,266 25,897,455 Corporate Briefing Session 2023 – November
Slide 18: Socks Unit
SOCKS UNIT • Presently Company installed 187 socks knitting machines along with related machinery. However, building and other allied machinery is sufficient to support 350 knitting machines. Management is intended to achieve economies of scale and reduce per unit fixed cost • Existing Project Size
Slide 19: Financial Details
FINANCIAL DETAILS Corporate Briefing Session 2023 – November 23, 2023
Slide 20: Revenue Trend
REVENUE TREND Revenue Trend 10,000 9,383 9,000 8,399 8,000 6,927 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 2020-21 2021-22 2022-23 Revenues (Rs. in million) Corporate Briefing Session 2023 – November 23, 2023
Slide 21: Revenue & Gross Profit Trend Analysis
REVENUE & GROSS PROFIT TREND ANALYSIS [Revenue & Gross Profit Trend Analysis] 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 2020-21 2021-22 2022-23 -10.00% -20.00% Revenues (Growth YoY) Gross Profit Margin (% of Net Sales) Corporate Briefing Session 2023 – November 23, 2023
Slide 22: Current Assets & Current Liabilities
CURRENT ASSETS & CURRENT LIABILITIES Current Assets & Current Liabilities 2,500 1,998 2,000 1,712 1,547 1,446 1,500 1,308 1,169 1,000 500 0 2020-21 2021-22 2022-23 Current Assets (Rs. In million) Current Liabilities ((Rs. In million) Corporate Briefing Session 2023 – November 23, 2023
Slide 23: Current Ratio
CURRENT RATIO Current Ratio 1.80 1.60 1.53 1.40 1.32 1.20 1.18 1.00 0.80 0.60 0.40 0.20 0.00 2020-21 2021-22 2022-23 Corporate Briefing Session 2023 – November 23, 2023
Slide 24: Total Assets vs Equity
TOTAL ASSETS Vs EQUITY Total Assets Vs Equity Total Assets (Rs in million) Networth / Equity (Rs in million) 6,000 5,307 5,145 5,000 4,649 4,000 3,144 3,011 3,000 2,790 2,000 1,000 0 2020-21 2021-22 2022-23 Corporate Briefing Session 2023 – November 23, 2023
Slide 25: Years' Sales & Gross Profit Analysis
6 YEAR’S SALES & GROSS PROFIT ANALYSIS 10,000,000 SALES REVENUE & GROSS PROFIT 1,200,000 Year Sales Gross Profit 9,000,000 1,000,000 8,000,000 Gross Profit (Rs ‘000’) 7,000,000 800,000 Sales ( Rs. ‘000’) 6,000,000 5,000,000 600,000 4,000,000 400,000 3,000,000 2,000,000 200,000 1,000,000 0 - 2018 201
Slide 26: Question & Answer Session
Question & ANSWER SESSION Corporate Briefing Session 2023 – November 23, 2023