Aisha Steel Mills Ltd. · PSX:ASL
Aisha Steel Mills — Investor Presentation (November 2023)
22 slides from Aisha Steel Mills's investor presentation, Nov 24, 2023
Slide 1: Corporate Briefing Presentation
Corporate Briefing Presentation Friday, November 24th, 2023 | 4:00 PM
Slide 2: Disclaimer
-------------------------DISCLAIMER------------------------- THIS PRESENTATION IS NOT AN OFFER OR SOLICITATION OF AN OFFER TO BUY OR SELL ANY SECURITIES OR ANY INVESTMENT. This presentation has been prepared by Aisha Steel Mills Limited (“ASML”) solely for information purposes. No representation or
Slide 3: Profile of Company
PROFILE OF COMPANY
Slide 4: Company Overview
COMPANY OVERVIEW Aisha Steel Mills Limited (“ASML”) is a public limited company, incorporated in Pakistan. The shares of the Company are listed on Pakistan Stock Exchange. ASML is a part of Arif Habib group and is one of the largest private sector investments in the value added flat-rolled steel ind
Slide 5: Vision & Mission
Vision & Mission Vision To be a global leader in the flat steel industry with the largest share of the local market while fostering the culture of responsible production and consumption to be eventually acknowledged by its customers for quality and service excellence. Mission To supply the highest q
Slide 6: Our Products
Our Products Cold Rolled Coils • Annual Capacity: 450,000 Tons • Size (mm): 0.15mm – 3mm • Surface Finish: Matt / Bright Hot Dipped Galvanized Coils • Annual Capacity: 250,000 Tons • Size (mm): 0.15mm – 3mm • Spangle: Zero / Regular • Coating Thickness: Z06 – Z27
Slide 7: Domestic Presence
Domestic Presence Regional Office Rawalpindi Lahore Regional Office Multan Regional Office 700,000 tons Production Facility & Karachi Ware House Head Office and Factory
Slide 8: Strategic / Operational Developments
STRATEGIC / OPERATIONAL DEVELOPMENTS
Slide 9: International Market Overview
International Market Overview • The HRC prices gradually declined from US$ 1,000, FOB China present in April 2022 to US$ 550 in October 2022. The prices gradually increased from November 2022 to March 2023 reaching US$ 725 on the back of post COVID demand push. However, the declining trend resumed a
Slide 10: Local Market Overview
Local Market Overview • During the year 2022-23, the country, faced multiple challenges on both political and economic fronts. Political instability perpetuated, leading to severe economic crises. The rupee depreciated by over 25% and interest rate rose above 20%. The acute balance of payment crises
Slide 11: Local Market Overview
Local Market Overview • In order to manage the precarious situation, abrupt policy changes were enforced by the government. Amongst the measures taken, included mandatory requirement of depositing 100% cash margin for opening letter of credit. It remained in force from April 2022 to March 2023, caus
Slide 12: Local Market Overview
Local Market Overview • The expensive HRC consignments, booked by ASML in May/June 2022, arrived at Karachi Port in July/August 2022. However, these consignments could not be released due to non-payment on account of foreign exchange restrictions imposed by the central bank. This resulted in product
Slide 13: Local Market Overview
Local Market Overview • The tough economic situation continued to bite in the first quarter of the current financial year. However, the situation is showing some signs of improvement. Recently few key administrative and financial measures were introduced to control rupee devaluation. The rupee start
Slide 14: Macroeconomic Factors
Macroeconomic Factors Kibor 3 M USD EURO JPY CNY HRC Jul-22 15.69 240.40 246.08 1.81 35.83 $650 Aug-22 15.92 220.60 221.76 1.59 32.15 $640 Sep-22 15.77 229.95 225.84 1.59 32.50 $600 Oct-22 15.76 222.90 222.54 1.51 30.78 $560 Nov-22 16.92 224.40 232.70 1.62 31.58 $580 Dec-22 17.00 226.90 242.33 1.71
Slide 15: Market Share
Market Share ASML Competitor 1 Imports Competitor 2 60% 50% 44% 40% 38% 38% 38% 38% 40% 32% 33% 32% 36% 30% 34% 32% 30% 27% 22% 26% 21% 20% 16% 10% 7% 7% 7% 0% 2018-19 2019-20 2020-21 2021-22 2022-23 Q1 FY24
Slide 16: Details of Financial Information
DETAILS OF FINANCIAL INFORMATION
Slide 17: Aisha Steel Highlights
Aisha Steel Highlights 2.26+ million tons production-to- date 674+ Employees 277+ Billions (PKR) turnover generated 700,000 Tons production capacity 56+ Billions (PKR) contribution to National ex-chequer * Data presented till September 30, 2023
Slide 18: Aisha Steel's Trendline
Aisha Steel’s Trendline Revenue (Bln PKRs) Gross Profit (Bln PKRs) Profit after tax (Mln PKRs) 65 11.19 6,368 55 (617) 31 30 5.51 1,146 35 254 20 2.01 2.37 11 1.68 1.03 (3,216) Q1 FY24 2023 2022 2021 2020 2019 Q1 FY24 2023 2022 2021 2020 2019 Q1 FY24 2023 2022 2021 2020 2019 Production (Thousand Ton
Slide 19: Ratios
Ratios Current Ratio (Times) Debt to Equity Return on Capital Debt Equity Employed 19% 0.97 77 77 69 0.85 5% 0.82 -6% 23 23 31 Q1 FY24 FY23 FY22 Q1 FY24 FY23 FY22 Q1 FY24 FY23 FY22 Return on Equity Ratio Interest Coverage Ratio (Times) 0.23% 8.16% 1.55 1.05 -20.49% (0.33) Q1 FY24 FY23 FY22 Q1 FY24 F
Slide 20: Results (PKR in '000)
Results (PKR in ‘000) Q1 FY 2024 FY 2023 FY 2022 Sales 10,599,480 31,102,382 64,830,418 Cost of sales (9,565,914) (29,088,829) (59,316,732) Gross profit 1,033,566 2,013,553 5,513,686 Selling and distribution cost (66,377) (141,786) (421,489) Administrative expenses (100,970) (413,221) (395,401) Oper
Slide 21: Question & Answer Session
QUESTION & ANSWER SESSION
Slide 22: Thank You
Thank You Corporate Briefing Session
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