CORPORATE BRIEFING SESSION BOLAN CASTINGS LIMITED INTRODUCTION • Bolan Castings Limited is a Public Limited Company and listed on the Pakistan Stock Exchange. • The Company was incorporated on 15th July, 1982 as a Public Limited Company by Pakistan Automobile Corporation Limited (PACO) under the administrative control of Ministry of Production, Government of Pakistan. • The plant was commissioned in June 1986 with the assistance of Foundry Management & Design Company (FMD), United Kingdom (U.K) and commercial production was started in July, 1986. INTRODUCTION • The Company was privatized and handed over to a group of management under a joint collaboration of Millat Tractors Limited and the employees of Bolan Castings Limited on 13th June, 1993. • The main business activity of the company is to produce castings of tractors and automobiles parts. PRODUCTIN FACILITIES Bolan Castings Limited, Production facilities consist of : • Two foundry plants which can produce more than 16,000 tons per year of castings in grey and ductile iron • Duplex melting facilities • Induction Melting • High pressure moulding line • Fully computerized green sand plant • New sand preconditioning plant • Sand washing plants • Resin coated sand plant • Finishing shop for shot blasting, fettling, grinding and painting • Pattern making through CAD/CAM process • An ancillary workshop for the fabrication and maintenance GROUP COMPANIES • Millat Tractors Limited • Millat Equipment Limited • Millat Industrial Product Limited • TIPEG Intertrade DMCC CUSTOMERS • Millat Tractors Limited • Millat Equipment Limited • Al-Ghazi Tractors Limited • Mecas Engineering Limited • Infinity Engineering Limited • Hino Pak Motors Ltd. • Ghandhara Nissan Ltd. • Ghandhara Industries Ltd. • Master Motors Corp. Ltd. • Afzal Motors (Daewoo) PRODUCTS GALLERY PRODUCTS GALLERY PRODUCTS GALLERY PRODUCTS GALLERY ECONOMIC OVERVIEW • At the end of the first half of the fiscal year 2019-20, Pakistan's economy seemed to be on the path to stability. • The macroeconomics stability gained during the period however was challenged by the COVID-19 pandemic in the second half of the fiscal year 2019-20 , thus making the fiscal year toughest in the history of Pakistan’s economy. • The lockdowns all across the country combined with global depression ended up shattering the economy which resulted in a growth contraction. All major economic targets were missed in the fiscal year 2019-20. BUSSINESS REVIEW • There was a visible decline in tractor market and its vending industry in fiscal year 2019-20. • The decrease in sales of tractors has badly affected the sales and production targets of the Company. • During the fiscal year 2019-2020, the company produced 6623 MT of castings against 8694 MT in the last year with 24% production decline. • During the year under review, 7280 MT of castings has been sold against 9646 MT in the last year with 25% decline in sales. BUSSINESS REVIEW • In addition, the devaluation of Pakistani Rupees against foreign currencies has resulted increase in raw material and fuel prices. • All these factors have predominantly contributed towards the gross loss. TWO YEARS AT A GLANCE (Rupees in thousand) 2019-20 2018-19 INCOME Revenue from contracts 1,332,568 1,513,636 Gross Profit / (Loss) (88,132) (149,777 Gross Profit / (Loss) % (6.61)% (9.90)% Profit/(Loss) after tax (271,688) (238,999) Profit/(Loss) after tax % (20.40)% (15.79)% Earnings per share ( Rs.) (23.68) (20.83) Dividend ( % ) - - TWO YEARS AT A GLANCE (Rupees in thousand) 2019-20 2018-19 FINANCIAL POSITION Current Assets 561,021 808,414 Less: Current Liabilities 722,949 745,231 Net Working Capital (161,928) 63,183 Property, Plant and Equipment 228,901 259,216 Others-Non Current Assets 143,192 114,637 210,165 437,036 Less : Other Liabilities (115,773) (55,234) Shareholders' Equity 94,392 381,802 COMPANY PERFORMANCE Production (MT) ( M.T ) 18,000 16,294 16,000 14,000 12,000 11,566 10,000 8,436 8,694 8,000 6,623 6,000 4,000 2,000 - 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE Sales Value – Sales Tonnage (Rs. in 000) (MT) 2,500,000 18,000 2,299,931 16,000 2,000,000 1,744,098 14,723 14,000 12,000 1,513,636 1,500,000 1,333,476 11,199 1,332,568 10,000 8,000 1,000,000 8,602 9,215 6,839 6,000 500,000 4,000 2,000 0 0 2015-16 2016-17 2017-18 2018-19 2019-20 Sales Value Sales Tonnage COMPANY PERFORMANCE Gross Profit/(Loss) (Rs. in ‘000) 350,000 328,202 246,628 250,000 150,000 140,876 50,000 (50,000) (88,132) (150,000) (149,777) (250,000) 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE Profit after Tax (Rs. in ‘000) 150,000 133,402 97,776 50,000 25,870 (50,000) (150,000) (250,000) (238,999) (271,688) (350,000) 2015-16 2016-17 2017-18 2018-19 2019-20 COMPANY PERFORMANCE Earnings Per Share (Rs.) 15.00 11.63 10.00 8.52 5.00 2.25 - (5.00) (10.00) (15.00) (20.00) (20.83) (25.00) (23.68) 2015-16 2016-17 2017-18 2018-19 2019-20 PRINCIPLE RISKS • Any change in the tractor sale and government policy may have a direct impact on our sales and profitability. • Foreign exchange risk persists on import of raw material may increase cost of production. • Interest rate risk may increase cost of borrowings which may decrease profitability. • Changes in relevant income tax, sales tax and custom relevant laws, may have direct impact on sales and profitability. FUTURE PROSPECTUS • Market feed back is positive for fiscal year 2020-2021. • Demand for tractor is soaring locally as well as globally. • Our main customer Millat Tractors Limited is also planning to focus on export • The spillover effect will thus improve our company’s financial health as well. • All possible measures are being taken for reducing cost along with continuous emphasis on financial controls and operational efficiencies. Q & A Session Thank You.