Hinopak Motors Limited. · PSX:HINO
Hinopak Motors — FY2020 Earnings Presentation
19 slides from Hinopak Motors's earnings presentation, Sep 23, 2020
Slide 1: Hinopak Motors Limited Corporate Briefing Session
1/19 = HINO HINOPAK MOTORS LIMITED CORPORATE BRIEFING SESSION YEAR ENDED MARCH 31, 2020 )\ 5 & >» @, é maham D2 INADA Date: September 23, 2020
Slide 2: 2/19
2/19
Slide 3: Company overview
3/19 Hinopak Motors Limited was incorporated in Pakistan in 1985 as a Public limited company and is listed on the Pakistan Stock Exchange. The Company is primarily engaged in the assembly, progressive manufacturing and sale of Hino buses and trucks. Company's product range comprises of Light, Me
Slide 4: Product models and competitors
4/19 The Company offers total of 14 models of vehicles which includes 2 LCV models, 4 MCV models, 4 HCV models and 4 models of buses. Main competitors of the Company are two Japanese Automobile Assemblers Ghandara Industries Limited and Ghandara Nissan Limited.
Slide 5: 5/19
5/19
Slide 6: COVID-19, inflation, exchange rate and discount rate
6/19 COVID 19 Inflation Rate • Outburst of unprecedented Exchange Rate Corona Virus USD / PKR caused SBP Discount businesses across the Market Size Rate world at Halt. Mar-20 Mar-19 10.74% Mar-20 9.41% Mar-18 to Mar-19 • HPML Rs. 166.80 production also 8810 units suffered due to Pandemic. Mar-20 Mar
Slide 7: Budget FY21 and board election
7/19 No real incentive was provided to automotive sector in the budget for FY21 posting a challenging outlook for the business going forward. Additional Custom duty @ 7% was levied on the import of CKDs. Election of Directors was held in November 2019 in which new Board was elected for the nex
Slide 8: 8/19
8/19
Slide 9: USD / PKR Parity
9/19 USD / PKR PARITY 168.8 Jun 20 vs Sep 17 166.8 165.0 PKR -60% 160.3 155.0 156.7 155.4 145.0 140.7 139.1 135.0 124.3 125.0 121.6 115.4 115.0 110.5 105.5 104.9 105.0 105.0 95.0
Slide 10: 10/19
10/19
Slide 11: Financial results summary
11/19 March 31, Particulars 2019 2020 Units 2850 1639 Rs. in '000 Turnover 19,130,839 13,191,060 Gross Profit / (Loss) 1,113,314 (170,411) Distribution cost & Administrative expenses (759,331) (721,697) Other Income - net 147,640 82,889 Operating Loss 501,623 (809,219) Finance Cost (1,021,797) (1,03
Slide 12: Sales and gross profit commentary
12/19 The decrease in current year’s sales volume mainly attributed to contraction in the overall market demand. The sales revenue for the year ended March 31, 2020 decreased to Rs. 13.19 billion from Rs. 19.13 billion in the corresponding period last year mainly due to decrease in overall sales
Slide 13: Finance cost, tax and loss per share
13/19 Finance cost for the year ended March 31, 2020 increased to Rs. 1.03 billion against Rs. 1.02 billion in the corresponding period last year. The current year’s finance cost predominantly comprises of borrowing cost of Rs. 854.8 million on short term borrowings and exchange loss amounting to
Slide 14: Balance sheet summary
14/19 March 31, March 31, 2019 2020 Particulars Rs. in '000 Non-Current Assets 3,185,487 3,685,989 Inventory 8,038,091 3,837,972 Other Current Assets 3,067,098 1,932,799 Total Assets 14,290,676 9,456,760 Equity 3,560,412 1,709,088 Long-Term Liabilities 298,314 303,229 Short term borrowings 6,766,074
Slide 15: 15/19
15/19
Slide 16: Outlook and risks
16/19 Since March-20, the outbreak of COVID-19 causing uncertainty in the overall economic scenario will be of paramount importance for the growth of economic activity as well as for the Company. Over the past few years, devaluation of Pak rupee against USD has effected the cost of production an
Slide 17: Measures taken and right share issue
17/19 The company has taken various measures to address declining profitability by controlling production overheads and improving sales volume through sales campaigns. In order to improve its equity base, the Company has increased the Authorized Share Capital to provide more flexibility for futu
Slide 18: Disclaimer
18/19 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 Hinopak Motors Limited solely for information purposes. Therefore, no representation or warranty express or implied is made thereto, and no relia
Slide 19: 19/19
19/19