Sindh Abadgars Sugar Mills Limited · PSX:SASML

Sindh Abadgars Sugar Mills — Investor Presentation (February 2024)

37 slides from Sindh Abadgars Sugar Mills's investor presentation, Feb 19, 2024

  1. Slide 1: Corporate Briefing Session for the Year 2022-23

    SINDH ABADGAR’S SUGAR MILLS LIMITED CORPORATE BRIEFING SESSION FOR THE YEAR 2022-23 Presented By: Mr. Saqib Ghaffar - CFO

  2. Slide 2: Session Will Start at 03:00PM

    SASM CBS SESSION WILL START at 03:00PM Please join the meeting at 03:00 19th February 2024

  3. Slide 3: Presentation Outlines

    PRESENTATION OUTLINES 1- Brief History of the Company 2- Associated Companies 3- Management Profiles 4- Six Years Financial Results 5- Future Outlook 6- Question & Answers 3

  4. Slide 4: Brief History of the Company

    BRIEF HISTORY OF THE COMPANY 4

  5. Slide 5: Company Introduction

    COMPANY INTRODUCTION ❖ Sindh Abadgar’s Sugar Mills Ltd. Incorporated on 28th January 1984 as a Public Limited Company and its shares are quoted on Pakistan Stock Exchange Limited. ❖ The Company’s Authorized Capital is Rs. 650.000 million and Paid up Capital Rs. 104.250 Million. ❖ Principal activity

  6. Slide 6: Board of Directors

    BOARD OF DIRECTORS Mr. Deoo Mal Essarani – Chairman / Director Dr. Tara Chand Essarani - Chief Executive Officer / Director Mr. Dileep Kumar - Director Mr. Pehlaj Rai - Director Mr. Mohan Lal - Director Dr. Besham Kumar - Director Mr. Mahesh Kumar - Director Mr. Muhammad Siddiq Khokar - Independent

  7. Slide 7: Board of Directors: Mr. Deoo Mal Essarani, Chairman

    BOARD OF DIRECTORS MR. DEOO MAL ESSARANI CHAIRMAN The Board of Directors is headed by Mr. Deoo Mal Essarani, the Chairman of the Company. He is in fertilizer business since last 50 years and is one of the largest importers of fertilizer under the title of “UNITED AGRO CHEMICALS” and a well known bra

  8. Slide 8: Board of Directors: Dr. Tara Chand Essarani, CEO

    BOARD OF DIRECTORS DR. TARA CHAND ESSARANI CHIEF EXECUTIVE OFFICER DR. TARA CHAND ESSARANI is a medical doctor by profession. He joined the Board in 2005 and since then he has been imparting his skills and expertise in various departments and areas of the Company which proved to be an essential asse

  9. Slide 9: Board of Directors: Mr. Mahesh Kumar, Executive Director

    BOARD OF DIRECTORS MR. MAHESH KUMAR EXECUTIVE DIRECTOR MR. MAHESH KUMAR is an Executive Director of the company and hold the key responsibility of managing sales, banking & finance department. He is a graduate and has been a member of the Board since 2005. His proficiency and skills in Sales & Marke

  10. Slide 10: Board of Directors

    BOARD OF DIRECTORS Mr. Dileep Kumar Mr. Mohan Lal He was elected as Director of the He was elected as Director of The Company in company in 2012. He is a graduate 2005. He is a graduate and carries vast and possessed knowledge, experience experience in agriculture farming which helps in trading and

  11. Slide 11: Audit Committee

    AUDIT COMMITTEE Mr. Zafar Ahmed Ghori Chairman Mr. Pehlaj Rai Member Mr. Dileep Kumar Member Dr. Besham Kumar Member 11

  12. Slide 12: HR and Remuneration Committee

    HR AND REMUNERATION COMMITTEE Ms. Maheshwari Osha Chairman Mr. Mohan Lal Member Mr. Dileep Kumar Member 12

  13. Slide 13: Associated Companies

    ASSOCIATED COMPANIES 1. United Agro Chemicals 2. SGM Sugar Mills Limited 3. United Ethanol Industries Limited 4. Agro Trade (Private) Limited 5. United Commodities (Private) Limited 6. Synergy Packaging (Private) Limited 13 5

  14. Slide 14: Address

    ADDRESS Mills Site Registered Office Deh: Deenpur, 209, 2nd Floor, Progressive Taluka, Bulri Shah Karim, Plaza, Beaumont Road, Distt: Tando Muhammad Khan, Karachi. Sindh-73024 14

  15. Slide 15: Six Years Financial Results

    SIX YEARS FINANCIAL RESULTS 15

  16. Slide 16: Sugar Cane Crushing

    SUGAR CANE CRUSHING 700,000 660,055 600,000 500,000 474,176 485,128 431,457 Volume (M. Tons) 392,757 400,000 359,528 300,000 200,000 100,000 0 2018 2019 2020 2021 2022 2023 Capacity Per Day 8000 8000 8000 8000 8000 8000 Capacity Utilization % 62 61 47 61 71 64 Crushing Days 133 88 95 81 84 95 16

  17. Slide 17: Sugar Production

    SUGAR PRODUCTION 80,000 70,000 67,244 60,000 52,507 51,529 50,000 46,634 M. Tons 39,645 40,000 37,614 30,000 20,000 10,000 0 2018 2019 2020 2021 2022 2023 Years Year 2018 2019 2020 2021 2022 2023 Sugar Production 67,244 46,634 37,614 39,645 52,507 51,529 17 Sugar Recovery 10.19% 10.78% 10.46% 10.10%

  18. Slide 18: Molasses Production

    MOLASSES PRODUCTION 40,000 34,330 35,000 30,000 Quantity in M. Tons 25,000 22,574 20,100 20,723 20,000 17,825 16,620 15,000 10,000 5,000 - 2018 2019 2020 2021 2022 2023 Year Year 2018 2019 2020 2021 2022 2023 Molasses Recovery 5.20% 4.65% 4.62% 4.58% 4.37% 4.66% 18

  19. Slide 19: Turnover

    TURNOVER 6,000,000,000 5,534,665,598 5,000,000,000 4,216,372,059 4,000,000,000 3,392,097,376 3,025,752,336 Rupees 3,000,000,000 2,211,305,116 2,253,713,462 2,000,000,000 1,000,000,000 - 2018 2019 2020 2021 2022 2023 Year 19

  20. Slide 20: Sugar Selling Price per KG (Local) Gross

    SUGAR SELLING PRICE PER KG(LOCAL) GROSS 120.00 103.34 100.00 96.38 86.86 80.00 76.97 Rs. Per KG 62.75 60.00 38.64 40.00 20.00 - 2018 2019 2020 2021 2022 2023 Year 20

  21. Slide 21: Sugar Selling Price per KG (Local) Net of Sales Tax

    SUGAR SELLING PER KG(LOCAL) NET OF SALES TAX 100.00 90.00 87.44 83.24 80.00 74.56 70.00 65.65 60.00 55.57 Rs. Per KG 50.00 40.00 34.20 30.00 20.00 10.00 - 2018 2019 2020 2021 2022 2023 Year 21

  22. Slide 22: Selling Price – Export Including Subsidy

    SELLING PRICE – EXPORT INCLUDING SUBSIDY 180.00 162.69 160.00 140.00 120.00 Rs. Per KG 100.00 84.19 80.16 80.00 60.00 40.00 20.00 - - - - 2018 2019 2020 2021 2022 2023 Years 22

  23. Slide 23: Sugar Cane Cost per 40KGS

    SUGAR CANE COST PER 40KGS 400 341 350 314 300 289 269 Rate per 4Gs (Rs.) 250 197 200 167 150 100 50 - 2018 2019 2020 2021 2022 2023 Year 23

  24. Slide 24: Gross Profit Margin %

    GROSS PROFIT MARGIN % 25.00% 20.47% 20.00% 15.12% 15.00% Percentage 10.00% 8.61% 8.28% 7.12% 5.00% 2.82% 0.00% 2018 2019 2020 2021 2022 2023 Years 24

  25. Slide 25: Manufacturing Overheads Excluding Depreciation

    MANUFACTURING OVERHEADS EXCLUDING DEPRECIATION 450,000,000 400,000,000 383,445,519 350,000,000 302,375,964 300,000,000 Amout (Rs.) 250,000,000 227,249,886 231,235,608 199,631,123 202,266,941 200,000,000 150,000,000 100,000,000 50,000,000 - 2018 2019 2020 2021 2022 2023 Year 25

  26. Slide 26: Administrative Expenses Excluding Depreciation & Bad Debts

    ADMINISTRATIVE EXPENSES EXCLUDING DEPRECIATION & BAD DEBTS EXPENSES 140,000,000 118,157,824 120,000,000 104,891,737 98,194,130 100,000,000 91,364,798 82,910,193 78,182,951 80,000,000 Rupees 60,000,000 40,000,000 20,000,000 - 2018 2019 2020 2021 2022 2023 26 Year

  27. Slide 27: Selling Expenses Excluding Export Expense

    SELLING EXPENSES EXCLUDING EXPORT EXPENSE 12,000,000 10,335,456 10,000,000 8,000,000 6,310,821 6,485,593 Rupees 6,000,000 4,806,021 4,937,425 4,902,994 4,000,000 2,000,000 - 2018 2019 2020 2021 2022 2023 Year 27

  28. Slide 28: Financial Cost

    FINANCIAL COST 450000000 400000000 384,181,260 350000000 300000000 279,839,136 250000000 Rupees 198,464,356 200000000 164,982,603 161,926,469 150000000 116,132,891 100000000 50000000 0 2018 2019 2020 2021 2022 2023 Year 28

  29. Slide 29: Profit / Loss After Taxation

    PROFIT / LOSS AFTER TAXATION 500,000,000 400,000,000 373,368,657 300,000,000 200,000,000 Rupees 100,000,000 68,210,590 49,653,685 - 2018 2019 2020 2021 2022 2023 (40,940,073) (100,000,000) (80,156,086) (200,000,000) (165,396,500) Year Year 2018 2019 2020 2021 2022 2023 G.P Ratio 8.28% 15.12% 2.82% 7

  30. Slide 30: Earning/(Loss) per Share

    EARNING/(LOSS) PER SHARE 40.00 35.81 30.00 20.00 10.00 6.54 4.76 - 2018 2019 2020 2021 2022 2023 (3.93) (10.00) (7.69) (15.87) (20.00) 30

  31. Slide 31: Dividend Payout

    DIVIDEND PAYOUT 25% 20% 20% 16% 15% Percentage 10% 10% 5% 0% 0% 0% 0% 2018 2019 2020 2021 2022 2023 Year 31

  32. Slide 32: Current Ratio

    CURRENT RATIO 1.80 1.59 1.60 1.40 1.31 1.20 1.11 1.08 1.06 1.04 1.00 Time 0.80 0.60 0.40 0.20 - 2018 2019 2020 2021 2022 2023 Year 32

  33. Slide 33: Debt Equity Ratio

    DEBT EQUITY RATIO 0.60 0.57 0.54 0.50 0.50 0.50 0.43 0.40 Time 0.30 0.20 0.10 0.06 - 2018 2019 2020 2021 2022 2023 Year 33

  34. Slide 34: Addition in Capital Expenditures

    ADDITION IN CAPITAL EXPENDITURES 160,000,000 143,674,031 140,000,000 118,425,711 120,000,000 100,000,000 Rupees 80,000,000 72,603,710 60,000,000 52,936,171 40,000,000 30,893,467 18,622,864 20,000,000 - 2018 2019 2020 2021 2022 2023 Year 34

  35. Slide 35: Future Outlook

    FUTURE OUTLOOK —— — —

  36. Slide 36: Future Outlook

    FUTURE OUTLOOK Unabated spiraling inflation may further increase the production cost of sugar. Manufacturing of sugar at Rs. 425 per 40KG. Support Price of Sugar Cane is unviable. Interest rate at 22% is eroding the profitability of the company. Continuous low selling Price comparatively with intern

  37. Slide 37: Thanks!

    THANKS! Presented by: Saqib Ghaffar CFO Any questions? You can find us at sasm@unitedgroup.org.pk 37

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