Mughal Iron & Steel Industries Ltd · PSX:MUGHAL
Mughal Iron & Steel Industries — Corporate Update (June 2020)
13 slides from Mughal Iron & Steel Industries's corporate update, Jun 30, 2020
Slide 1: Corporate Briefing FY-2020
CORPORATE BRIEFING MUGHAL IRON & STEEL INDUSTRIES LIMITED FY -2020
Slide 2: Industry Overview
Industry Overview The Company principally operates in the long steel industry in Pakistan which is fragmented, with numerous small and medium-scale producers engaged in re-rolling, and melting activities. The total production capacity stands at ~5mn tons, with an almost equal share of standard and s
Slide 3: Company Overview
Company Overview The Company is involved in multidimensional activities from making billets to steel rebars, girders, t-iron and copper ingots. Steel rebars cater to both housing sector market and large infrastructure projects market, while girders and t-iron mainly cater the housing sector market.
Slide 4: Product portfolio
Product portfolio The company has a strategically developed diversified product port folio making it capable of mitigating risks due to adverse economic Supreme re-bar changes and markets / political risks. Sale (MT) 300,000 Girders Billets 250,000 200,000 Product 150,000 100,000 2020 50,000 - 2019
Slide 5: Market Portfolio
Market Portfolio The overall market portfolio comprises of retail, corporate and export sector. Corporate sector Export sector Copper Retail sector ingots Government Private sector projects projects Mughal supreme re-bars cater the urban markets In-addition to long Housing in the retail sector. Indu
Slide 6: Key Strengths
Key Strengths 01 Strong brand recognition 02 Diversified product and market portfolio 03 One stop sale centers for long rolled steel products MUGHAL 04 Strong clientele / distribution network STEEL 05 Cost effective inbound logistics
Slide 7: Value Chain
Value Chain Billets Procured Externally End Consumer Rural Housing Sector Girders Semi-Finished Product: Finished Products: Transportation Urban Housing Sector Imported Scrap Port Transportation Factory Billet Self Manufactured Re-bars – Supreme Re-Bars - Supreme Re-bars – G-60 Girders Corporate Con
Slide 8: Market mix, Retail mix, Re-bar mix
Market mix Retail mix Re-bar mix 2020 2020 2020 2% 18% 32% 47% 50% 68% 82% Corporate sector Supreme G-60 Retail sector Girder Supreme Tee Retail mix Re-bar mix Market mix 2019 2019 2019 2% 24% 44% 43% 55% 57% 76% Supreme G-60 Corporate sector Girder Retail sector Supreme Tee
Slide 9: Year Overview
Year Overview Financial year 2019-2020 was a tough year for your Company amidst the adverse economic conditions of the Country which were further aggravated post the outbreak of Covid-19 crisis. It is in these times more than any other, where our strategically developed highly diversified product an
Slide 10: Key Performance Indicators
Key Performance Indicators FY15 FY16 FY17 FY18 FY19 FY 2020 GP Margin (%) 10.84 10.85 10.45 12.57 10.34 9.59 Net Margin (%) 5.38 4.71 5.27 5.81 4.45 2.17 ROE (%) 19.36 21.09 14.93 17.28 18.30 7.27 ROCE (%) 16.60 18.28 16.58 17.24 14.35 5.28 Dividend payout (%) 5 30 26 22 12 - Bonus (%) 15 - - - - -
Slide 11: Profit or Loss & Comments
Profit or Loss & Comments Rs. in millions FY 20 FY19 Sales 27,304 30,828 Gross profit 2,617 3,189 Finance cost 1,515 786 Taxation (income / expense) 39 364 Profit for the year 593 1,373 EPS 2.36 5.46 Decrease in net sales Gross margins Finance costs increased Taxation for the year Resultantly, profi
Slide 12: Going Forward
Going Forward Monetary Easing Construction Package & Finance Act 2020 Impact of interest rate cuts by SBP will also have positive impact on On the fiscal front, the government in order to boost economic activity in the wake of Covid-19 laid the profitability of the Company. out a tax-free budget inc
Slide 13: Question & Answers
Finance Cost Taxation EPS Question & Answers
Mughal Iron & Steel Industries — Corporate Update (June 2020) on 6ix