Gatron Industries : CORPORATE BRIEFING SESSION 2023

GATRON (INDUSTRIES)

LIMITED

C O R P O R AT E B R I E F I N G

F O R T H E F I N A N C I A L R E S U L T S 2 0 2 3

D a t e : 2 7 t h O c t o b e r 2 0 2 3

V e n u e : S e r e n a H o t e l , Q u e t t a , B a l o c h i s t a n

DISCLAIMER

This presentation has been prepared by Gatron (Industries) Limited ("Gatron") solely for information purposes. No representation or warranty express or implied is made thereto, and no reliance should be placed on, the fairness, accuracy, sufficiency, completeness or correctness of the information or any opinion contained herein or any opinion rendered thereto. The information contained in this presentation should be considered in the context of the circumstances prevailing at the time and will not be updated to reflect any developments that may occur after the date of the presentation. Neither Gatron nor any of its respective subsidiaries, affiliates, officials, advisors, associates, employees or any person working for, under or on behalf, shall have any responsibility and/or liability of any nature whatsoever (in contact or otherwise) for any loss whatsoever arising from any use of this presentation or its contents or otherwise arising in connection with this presentation.

This presentation does not constitute or form part of a prospectus, offering circular or offering memorandum or an offer, solicitation, invitation or recommendation to purchase or subscribe for any securities and no part of it shall form the basis of, or be relied upon in connection with, or act as any inducement to enter into any arrangement, agreement, contract, commitment or investment decision in relation to any securities. This presentation shall not at all be intended to provide any disclosure upon which an investment decision could be made. No money, securities or other consideration is being solicited, and, if sent in response to this presentation or the information contained herein, will not be accepted.

The presentation may contain statements that reflect Gatron's own beliefs and expectations about the future. These forward-looking statements are based on a number of assumptions about the future, which are beyond Gatron's control. Such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statements. Gatron does not undertake any obligation to update any forward-looking statements to reflect events that occur or circumstances that arise after the date of this presentation and it does not make any representation, warranty (whether express or implied) or prediction that the results anticipated by such forward-looking statements will be achieved. In addition, past performance should not be taken as an indication or guarantee of future results.

By attending this presentation, you are agreeing to be bound by the foregoing limitations.

Company Presence

Company's Overview

Strategic/Operational Developments

Financial highlights FY 2023

Business Analysis

Ratio Analysis

Profitability Ratios

Turnover Ratios

Capital Expenditure & Plant Capacity

Future Outlook and Challenges

Question & Answers

CORPORATE BRIEFING

FOR THE FINANCIAL RESULTS 2023

COMPANY'S PRESENCE

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•	1st Floor, Ahmed Complex, Jinnah		•	11th Floor, G&T Tower, #18		•	Plot No. 441/49-M2, Sector "M",
	Road, Quetta - Balochistan,			Beaumont Road, Civil Lines-10,			H.I.T.E., Main R.C.D. Highway, Hub
	Pakistan.			Karachi-75530, Pakistan.			Chowki,	Distt	Lasbella,
•			•	Tel: [phone]-10			Balochistan, Pakistan.
Tel: [phone]
	•			•
			Fax: [phone].		Tel: [phone]
•	Fax: [phone]		•	Email: [e-mail]		•	Fax: [phone]

Registered Office

Liaison/Correspondence Office

Plant (Factory)

COMPANY OVERVIEW

• G a t r o n ( I n d u s t r i e s L i m i t e d ) w a s e s t a b l i s h e d i n 1 9 8 2 a s a p u b l i c l i m i t e d c o m p a n y & l o c a t e d i n t h e H u b - B a l o c h i s t a n .

• G a t r o n i s o n e o f t h e l a r g e s t i n d u s t r i a l e m p l o y e r i n H u b - B a l o c h i s t a n .

POLYESTER

FILAMENT YARN

PET PREFORMS

KNITTED FABRIC

• Gatron is the market leader of Polyester Filament Yarn in Pakistan.
• Producing a wide range of Polyester Filament Yarn products with varying lusters and colors.
• Our Denier Range covers a broad spectrum, offering options in Intermingled and Non- Intermingled Yarn.
• Gatron is also producing its recycled polyester yarn product "Ecoron" from 100% Post Consumer Waste
• Gatron is one of the leading manufacturers of PET Preforms in Pakistan & produce high quality Water / CSD bottles Preforms.
• Our circular knitted yarn are renowned for delivering exceptional comfort to the wearer,
• Our knitted fabrics are custom-designed using advanced technology, tailored to specific needs.
• Our dedication to quality and innovation makes us a trusted choice in the textile industry.

STRATEGIC/OPERATIONAL DEVELOPMENTS

Positive Attributes

•	I m p o s i t i o n o f 5 % R e g u l a t o r y D u t y o n
	i m p o r t o f P F Y.
•	6 0 T P D S p i n n i n g a n d Te x t u r i z i n g p l a n t
	h a s b e e n i n s t a l l e d a n d i s i n
	c o m m i s s i o n i n g p h a s e .
•	6 6 0 T P D P o l y m e r p l a n t h a s b e e n
	i n s t a l l e d a n d i s i n c o m m i s s i o n i n g
	p h a s e .
•	1 . 7 5 T P D C i r c u l a r K n i t t i n g M a c h i n e s
	a r e a l s o i n s t a l l e d .

• S u c c e s s f u l c o m m i s s i o n i n g o f n e w

	A u t o m a t i c P a c k i n g a n d I n s p e c t i o n
	p l a n t .
•	P r o d u c e o u r o w n p a p e r t u b e s f o r C o s t
	s a v i n g .
•	P o w e r G e n e r a t i o n c a p a c i t y e x p a n s i o n :
	•	K E C o n n e c t i o n
	•	H F O G e n e r a t o r s
•	S u c c e s s f u l i m p l e m e n t a t i o n o f S A P S 4
	H a n a .

•	U n a b a t e d & i n t e n s e d u m p i n g b y
	C h i n e s e P F Y p r o d u c e r s .
•	I m p o r t r e s t r i c t i o n s h a v e l e d d e l a y e d
	i n o p e n i n g o f L C s f o r m a j o r P l a n t &
	M a c h i n e r y .
•	H i g h e r i n t e r e s t r a t e s .
•	U n r e l i a b l e s u p p l y o f g a s &
	a r r a n g e m e n t o f a l t e r n a t e s u p p l y .
•	D e l a y i n s t a r t i n g o f n e w p l a n t s d u e t o
	C O V I D r e s t r i c t i o n i n C h i n a .

Adverse Attributes

FINANCIAL HIGHLIGHTS FY 2023

R u p e e s i n T h o u s a n d s

Operating Results	FY 2023	FY 2022	FY 2021	FY 2020	FY 2019
Sales	27,383,780	23,959,654	16,557,561	12,938,377	17,707,325
Gross Profit/(loss)	1,453,630	3,176,386	1,866,775	945,052	1,655,654
Operating Profit/(loss)	553,468	2,646,192	1,316,094	451,250	1,001,225
Investment Income - Dividend	1,072,313	225,750	112,875	1,212,750	1,120,088
Profit/(loss) after taxation	205,300	1,827,244	1,065,724	1,060,633	1,794,735
Earning per Share	2.68	23.81*	27.78	27.65	46.78
GP% of sales	5.31%	13.26%	11.27%	7.30%	9.35%
Operating Profit/(Loss) % of sales	2.02%	11.04%	7.95%	3.50%	5.70%
Dividend %	30%	0%	0%	125%	265%
Bonus Share Issued	383,645	-	-	-	-
Financial Position
Paid up Capital	767,290	383,645	383,645	383,645	383,645
Reserves & unappropriated profit	7,092,777	7,387,796	5,571,507	4,949,084	4,920,353
Break-up Value	102.44	202.57	155.23	139	138.25
Property, Plant & Equipment	16,938,295	9,769,076	5,949,200	3,577,722	2,359,404
Current Assets	19,999,229	13,366,480	8,272,998	5,699,899	5,784,987
Current Liabilities	19,864,692	9,407,985	5,562,385	3,362,395	2,946,343
Net Current Assets	134,537	3,958,495	2,710,613	2,337,504	2,838,644
Long Term Loans	8,179,328	5,696,304	2,840,439	1,174,783	126,540
Deferred Liabilities	1,672,727	795,533	502,344	415,372	373,162

• R e s t a t e d

FINANCIAL HIGHLIGHTS FY 2023

Y E A RLY S A L E S

• Financial Growth: Gatron achieved a net revenue of Rs. 27,383 million, marking a 14.29% increase from the previous year. The increase in revenue should be considered in perspective of the fluctuating exchange rates, i.e., US dollar to PKR Rs. 248 in the current year, compared to Rs. 178 in the previous year.
• Production & Market Dynamics: PFY production for the
  year reached around 75% of capacity. In the second half of the year, prices increased due to the devaluation of PKR & sales remained low, partly due to the impact of floods and primarily due to intense dumping by Chinese PFY producers.
• PET Preforms Sales Decline: PET preforms sales remained at lower side due to flood in peak demands months of July 22 & August 22 & low beverages demand.

R u p e e s i n T h o u s a n d s

Years	PFY	Preform	Total
2021	12,631,173	3,926,388	16,557,561
2022	19,745,058	4,214,596	23,959,654
2023	22,541,665	4,842,115	27,383,780

25,000,000
					PFY
20,000,000
				PFY
15,000,000
PFY
10,000,000
5,000,000
P.E.T		P.E.T	P.E.T
0
2021			2022	2023
			PFY		PREFORM

BUSINESS ANALYSISG r a p h i c a l P r e s e n t a t i o n

Mnisi l l i o n	15,000	17,707	12,938	16,558	23,960	27,384
	30,000
	25,000
	20,000
p e e	10,000
R u	5,000
	-
		FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
				Sales	13.26%
	16.00%	9.35%	7.30%	11.27%	5.31%
	14.00%
	12.00%
	10.00%
	8.00%
	6.00%
	4.00%
	2.00%
	0.00%
		FY 2019	FY 2020	FY 2021	FY 2022	FY 2023

sn	40,000	53,371	36,809	51,999	57,525	54,661
	70,000
	60,000
	50,000
T o	30,000
	20,000
	10,000
	-
		FY 2019	FY 2020	FY 2021	FY 2022	FY 2023
			Sales Qty - PFY
	1200					1075
n	1000
l l i o	800
M i	600
n
		206	127	313
eeps i	400
R u	200	17
	0
		FY 2019	FY 2020	FY 2021	FY 2022	FY 2023

GP% of sales		Finance Cost