Shabbir Tiles and Ceramics: Transmission of the quarterly report for the period ended 2022-03-31

SHABBIR TILES AND CERAMICS LIMITED

Condensed Interim Financial Statements

For the third quarter and nine months ended

March 31, 2022

(Unaudited)

CONTENT

01

Company Information

03

Directors’ report (English and Urdu)

06

07

08

09

ten

Interim condensed statement of financial position Interim condensed statement of net income Interim condensed statement of comprehensive income Interim condensed statement of changes in equity Interim condensed statement of cash flows

11

Notes to the condensed interim financial statements

COMPANY INFORMATION

BOARD OF DIRECTORS

Rafiq M. Habib

Syed Masood Abbas Jaffery Muhammad Salman Burney Imran Ali Habib

Abdul Hai Mr. Bhaimia Feroze Jehangir Cawasji Farhana Mowjee KhanPresident

Managing Director Director

Director Director Director Director

AUDIT COMMITTEEHUMAN RESOURCES AND COMPENSATION COMMITTEE

CHIEF FINANCIAL DIRECTOR COMPANY SECRETARY STATUTORY AUDITORS

JURAL ADVISOR

BANKERS

HEAD OFFICE AND PLANT UNIT-1

Feroze Jehangir Cawasji Abdul Hai Mr. Bhaimia Farhana Mowjee Khan

Feroze Jehangir Cawasji Muhammad Salman Burney Syed Masood Abbas Jaffery

Chairman Member Member

Chairman Member Member

Mustafa Jafar

Ovais Jamani

EY Ford Rhodes Chartered Accountants

Munawar Malik & Co. Lawyer Supreme Court

Habib Metropolitan Bank Limited Habib Bank Limited

Dubai Islamic Bank Pakistan Limited Faisal Bank Limited

Allied Bank Limited Meezan Bank Limited Bank Al Falah Limited

Milestone 15, National Highway Landhi Industrial Estate, Karachi-75120 Phone: (021) 38183610-3

E-mail:[email protected]

Fax: URL:

(021) 38183615http://www.stile.com.pkBOOK-HOLDER AND SHARE TRANSFER OFFICE

FACTORY UNIT-2

CDC Share registrar Services Limited, CDC House, 99-B, Block ‘B’, SMCHS Main Shahrah-e-Faisal, Karachi-74400. Telephone: 0800 23275

URL:www.cdcsrsl.comEmail: [email protected]Deh Khanto, Tappo Landhi, Malir District, Bin Qasim Town, KarachiTelephone: (021) 34102702

Fax: (021) 34102709

ISLAMABAD

(BUILDING MATERIALS PRODUCTS)

Plot No. 1, ANF Empty Parking Road, Yamaha Chowk Road, Model Town, Humak, Islamabad.

LAHORE

(BUILDING MATERIALS PRODUCTS)

78-A, Adda Factory, Dina Nath main Multan Road, 46KM, Lahore

COMPANY INFORMATION

STILE EMPORIUM AND DESIGN STUDIOS AND SALES OFFICES

STAR GATE EMPORIUM, KARACHI

Metro Cash & Carry, CAA, Near Star Gate, Main Shahrah-e-Faisal,Karachi.

Telephone: (021) 34601372-74

FACTORY EMPORIUM, KARACHIDHA BUKHARI EMPORIUM, KARACHIDHA 26TH STREET EMPORIUM, KARACHIBUILD MATE EMPORIUM, KARACHIDHA EMPORIUM, LAHORETHOKAR NIAZ BAIG EMPORIUM, LAHOREMUREE ROAD EMPORIUM, RAWALPINDIISLAMABAD EMPORIUM

15th Milestone, National Highway, Landhi Industrial Area, Karachi

Telephone: (021) 38183610-3

Plot 22-C, Lane 4, Bukhari Commercial, DHA, Phase VI, Karachi.

Telephone: (021) 37249564

26th Street Plot C-8-C, DHA Phase 5, Karachi.

Telephone: (021) 37228922

Build Mate 82-B, Midway Commercial, Bahria City, Karachi

Phone: 0345-3019124

DHA Lahore 164, CCA, Phase 4, LahoreTelephone: (042) 37185710-12

Metro Cash & Carry, Thokar Niaz Baig Multan Road, Lahore

Phone: 0301-8282212

Al Shareef Plaza, Ground Floor, Shamsabad, Murree Road, Rawalpindi

Telephone: (051) 4935521-23

Metro Islamabad, Plot No. 1-A, Sector 1-11/4, near Sabzi Mandi,Islamabad

Telephone: (051) 8469524

PESHAWAR EMPORIUMFAISALABAD EMPORIUMHYDERABAD EMPORIUM

162/408 Tahkal Payan, University Road, Peshawar

Telephone: (091) 3028068

Talha Heights, Main Susan Road, P-243, 2A, Faisalabad

Telephone: (041) 8739988

Shop no. 13 & 14, Fortune Arcade, Jamshoro Road, next to KFCNear Qasim Chowk, Hyderabad.

Phone: 0300-0647227

MULTAN EMPORIUM

Officers Colony, Main Bosan Road, Chungi No. 9, next to Crystal Mall,Mulan.

Telephone: (061) 2078492

BAHAWALPUR EMPORIUMWAH CANTT EMPORIUMSUKUR SALES OFFICEGround Floor, Commercial Building, Khawat No. 199/197, Moza BandraRoad to Multan, Bahawalpur.

Phone: 0301-8726867

Khan Plaza, Khasra No 434, GT Road, near Raja Saab Mall, Wah Cantt

Telephone: (051) 4926280-81

Tooba Plaza, Mezzanine Floor, Workshop Road, Sukkur

Call:

Telephone: (071) 5615560

SHABBIR TILES AND CERAMICS LIMITED DIRECTORS’ REPORT TO SHAREHOLDERS

FOR THE THIRD QUARTER AND NINE MONTHS ENDED MARCH 31, 2022

The Directors are pleased to present the financial results of your Company for the third quarter and nine months ended 31 March 2022.

COMMERCIAL ISSUES AND FINANCIAL PERFORMANCE

Gas unavailability reached unprecedented levels in the quarter under review, which impacted margins due to expensive alternative energy sources such as LPG and diesel in order to continue operating the plants . The continued weakening of the Rupee and rising international commodity prices also put pressure on gross margins. Despite these challenges, management continued to focus on producing best-in-class quality, an efficient product line, and promoting exclusive products through company-operated emporiums.

The financial performance for the nine months is summarized below:

in ‘000

Details

March 31, 2022

March 31, 2021

Net sales

8,755,489

7,467,444

Gross profit

2,288,447

2,406,757

Earnings before interest, taxes, depreciation and amortization (EBITDA)

1,403,011

1 808 119

Profit before tax

804 753

1,199,024

Profit after tax

465 525

766 174

Earnings per share (Rs./share)

1.95

3.20

During the period, gross margins decreased to 26% from 32%, due to the reasons discussed above. The overall profit before tax was Rs. 805 million against Rs. 1,199 million in the same period last year.

FUTURE PROSPECTS

The depletion of natural gas reserves continues to threaten the sustainability of the industrial sector, especially the tile that considers natural gas as the most essential raw material. A strong government will to address this risk is more critical than ever.

The Company is heavily dependent on natural gas for its energy needs. International supply chain constraints during the pandemic had led to a spike in coal and oil prices and now the resumption of economic activity around the world is expected to continue driving up energy prices. Recent geopolitical tensions between Russia and the West will further exacerbate the situation. Additionally, Pak Rupee has also depreciated further due to domestic political uncertainty and will continue to put further pressure on the cost of imported commodities. These factors will continue to weigh on the tile industry and will make it even more difficult for the Company to maintain its margins in the near future.

We take this opportunity to thank all stakeholders for their continued support.

On behalf of the Board of Directors

SYED MASOOD ABBAS JAFFERY

FEROZE JEHANGIR CAWASJI

Chief executive officer

Director

Karachi: April 22, 2022

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