Post on 28-Dec-2021
transcript
GROUP PROFILE
Siddiqsons Group traces its roots back to 1959 through establishment of Siddiqsons Limited, a textile unit which was a starting point of Denim Dynasty in Pakistan. Since then the Group has expanded into Tinplate, Energy, Construction & Real Estate sectors.
Siddiqsons Tin Plate
Limited is the first and only
Tin Plate Industry in
Pakistan. Established in
1999. It operates a 120,000
tons per annum Electro Tin
Plating (ETP)
Siddiqsons Limited, was
established in 1959. The
company has a fully
integrated vertical setup
which includes Spinning
Division, Knit Denim
Division, Garment Division
and Denim Division
Siddiqsons Energy: the Power Sector
Development division of Siddiqsons Group with the mandate to establish Coal
and Renewable Energy IPPs. It is developing a 330 MW sub-critical Thar coal
power plant at Thar.
Triple Tree Associates was
incorporated by
Siddiqsons, which further
diversified its holdings into
Real Estate. At the
moment several real
estate and construction
projects are under its
belt.
The Group Chairman & main
Sponsor of SSG Mr. Tariq Rafi
is also the owner / director
of MCB Bank Limited with
cumulative holding of 4.4% in
the Bank.
Corporate Social Responsibility (CSR)
Siddiqsons Group is providing below listed CSR facilities to the Local
communities:
• Education
• Provision of Water Supply
• Health
• Games & Sports
• Job Opportunities
• Plantation Drives
Education
• Distribution of Scholarships to the meritorious students/Local & Employees.
• Free IT Training to Local & Employees at IT Training Center Hub & planning to open IT Training center at Winder.
• Distribution of Stationaries, Books, Uniforms & other accessories to the Local/ Employee’s children.
• Revamping & Restarting of the school in collaboration with District Authorities at Local area.
Water Supply
Health Facilities
Games and Sports
Job Opportunities
Plantation Drives
• Provision of water supply through Boring filtered water is provided to the Local Colony.
• Free medical & Screening camps for the local Communities.
• Promotes Games & Sports in Local Communities.
• Creating Employment by Local Recruitments which will be preferred for the available Job slots of the required
expertise.
•Siddiqsons planted around 1000 trees at various locations in Hub.
•Frequent plantation drives within the project surrounding. Siddiqsons planted around 1000 trees at various locations in
Hub and in Karachi and received
“BEST TREE PLANTATION AWARD” from NFEH
Corporate Social Responsibility (CSR)
COMPANY OVERVIEW
Siddiqsons Tin Plate Limited is the first and only Tin Plate producer in Pakistan.
The Company was established in 1996, in collaboration with SOLLAC of France and Mitsubishi Corporation
The factory is located at special industrial zone, Windhar, Baluchistan
The project has a capacity to produce 120,000 tons per annum of Tin Plate, which is primarily used for making cans and containers for packaging of cooking oil, fruits, foods, vegetables, sea foods, beverages, paints, lubricant oil and other edible products
Key customers of the Company include Dalda Foods, Pakistan Oil Mills, Punjab Oil Mills, LatifGhee Mills, IFFCO, Shujaabad Agro, Meezan Oil, Associated Industries, Rehan Can
CORPORATE INFORMATION
Board of Directors
- Mr. Tariq Rafi Chairman
- Mr. Munir Qureshi CEO
- Mr. Ibrahim Shamsi Non-Exe. director
- Ms. Alia Sajjad Non-Exe. director
- Mr. Ashraf Mehmood Wathra Ind. director
- Mr. Abdul Wahab Ind. director
- Mr. Naeem ul Hasnian Mirza Exec. director
Pattern of Shareholding
- Mr. Tariq Rafi 19.72%
- M/s. Siddiqsons Limited 15.28%
- M/s. Arcelor Mittal, France 9.29%
- Other directors, sponsors, CEO
& their Spouse and management 22.33%
- General public & others 33.38%
Entity Rating
The ratings reflect Siddiqsons Tin Plate’s
established foothold in the tin plate
industry as the first and sole local
manufacturer of tin plate in Pakistan.
Siddiqsons has a market share of ~31% in
the local market. The demand for the
Company’s products has shown growth
in the recent past due to increased
hygiene consciousness of the public at
large and higher use of processed food.
Entity Rating:Long-Term: A-Short-Term: A2Outlook Stable
KEY HIGHLIGHTS
Significant improvement in operational activities, posting 77% increase in
revenue and 47% increase in CAPU;
Exports have increased by 147%;
Despite of difficult market situation due to high volatility in worldwide steel
prices and COVID-19, operational performance has significantly improved w.r.t
Revenue, profitability & Capacity Utilization;
Special Economic Zone status has been awarded for our upstream unit of
TMBP, providing 10 years tax holiday and exemption on duty & sales tax on
import of plant and machinery.
OPERATIONAL HIGHLIGHTS
▲% March 21 March 20 June 20
Local sales 58 3,169,401 1,999,671 2,905,281
Export Sales 147 1,309,376 531,125 651,167
EBITDA excl. Non-Recurring Items
% of sales
146 313,839
7.0%
127,634
5.0%
87,827
2.5%
Net Income / (Loss) after tax
% of sales
877 131,845
3.0%
(16,961)
(0.7%)
(23,144)
(0.6%
EPS 0.58 (0.08) (0.1)
Quantity SOLD 64 26436 16150 22489
CAPU
%
47 24285
27%
16484
18.3%
24061
20%
(Rs. in 000’s)
QUARTERLY OPERATIONAL ANALYSIS
1289
1902
1288
1182
1712
1089
45 61 87
QTR.1 QTR.2 QTR.3
Sales COGS PBT
(Rs. in millions)
BREAKUP OF TOTAL COST/EXPENSES
93%
2%
2%
1%
2%
Total Cost
COGS
Distribution Cost
Admin Expenses
Other operating
expenses
Finance cost
93%
3% 2%2%
Cost of Sales
Raw material
Salaries, wages and
benefits
Fuel and power
Other manufacturing
cost
TREND ANALYSIS
-80000
-60000
-40000
-20000
0
20000
40000
60000
80000
100000
120000
140000
2016 2017 2018 2019 2020 Mar 21
58888
128330
-67733
86891
-23144
131845
Profit After Tax (Rs. in Million)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2016 2017 2018 2019 2020 Mar 21
2119
25382646
34093556
4479
Sales Revenue (Rs. in Million)
TREND ANALYSIS
0
5000
10000
15000
20000
25000
2016 2017 2018 2019 2020 Mar 21
24471
1905118221
19478
24061 24285
Quantity Produced (In M.Ton.)
20000
21000
22000
23000
24000
25000
26000
27000
2016 2017 2018 2019 2020 Mar 21
25230
25727
24402
23784
22489
26436
Quantity Sold (In M.Ton.)
PROJECT HIGHLIGHTS
Capacity of TMBP Project
Total Production Capacity= 175,000 MT p.a.
• TMBP=120,000 MT p.a.
• CRC=55,000 MT p.a.
Total Cost PKR 8.5 billion (financed by 60% debt and 40% equity)
Expenditure Incurred
uptill June 2021
PKR 2,346,498,672 (two billion three hundred forty-six million four hundred
ninety-eight thousand six hundred seventy-two)
Key Benefits
HRC being the input material for TMBP is internationally available.
In-house availability of TMBP, resulting optimum CAPU of ETP plant Reduction in conversion cost of tin plating due to increased CAPU Zero import duty on HR Coils as compared to TMBP Consistency in production and quality, will also lead to enhance exports
PROJECT MILESTONES ACHIEVED
1. Main Plant Building – Completed
2. Foundations of Equipment – Completed
3. Office cum Residential Building – Completed
4. 17MW (132kV/11kV) Electric Power Grid Station &
Transmission Line – Under Construction
5. Over Head Cranes (04 Nos.) & Gantry Crane (01 No) –
are at Site
PROJECT STATUS
Main Plant Buildings
1. PPL Building Completed
2. CRM Building Completed
3. RCL & Finished Goods Building Completed
Civil Foundation of Equipment
1. Push Pull Pickling Line Completed
2. 6Hi Cold Reversing Mill Nearly complete
3. Electrolytic Cleaning Line Completed
4. Bell Type Annealing Furnace Completed
5. Temper Mill Nearly complete
6. Recoiling Line Completed
7.General Machine Workshop Completed
PROJECT STATUS
Over Head Cranes
1. PPL 02 Nos. Are at Site
2. RCL 02 Nos. Are at Site
3. Gantry Crane 01 No. Are at Site
DISPUTE STATUS
- Arbitration case filed by CISRI in Singapore on August
26th,2021.
- Schedule finalized by Singapore Arbitrator for final
hearing shall be conducted during January,2022.
PICTORIAL REVIEW OF PROJECT SITE
PPL Exit Section Equipment Foundation PPL Process area Equipment Foundation
FUTURE OUTLOOK
A review petition has been filed with National Tariff Commission for review of Antidumping duty on import of TMBP, and NTC has asked Engineering Development Board torevisit the capabilities of local producers, inviting STPL’s representative in the technicalteam;
Decrease in electricity cost through setting up of 1MW Solar Power Plant at Winder;
Further enhancement in export volume to the new developed export destinations andmarket expansion in the existing export markets;
Continue to retain loyal customer base;
The backward integration for production of TMBP is inevitable, hence it’s earliestcompletion is the main focus of the management;
Our case is strong and we expect to win the arbitration and will jump start the project.
The financial viability of the project has further improved due to zero custom duty on HRCand removal of turnover tax on income as announced in recent Federal Budget.