Nishat Mills Limited · PSX:NML

Nishat Mills — Investor Presentation (October 2019)

32 slides from Nishat Mills's investor presentation, October 2019

  1. Slide 1: Nishat Mills Limited Corporate Briefing Session

    NISHAT MILLS LIMITED Corporate Briefing Session For the year ended 30 June 2019 1

  2. Slide 2: Contents

    Contents  Group Profile  Company Profile  Management  Business Segments  Investments Portfolio  Financial Performance Highlights  Latest Financial Results  Future Outlook 2

  3. Slide 3: Group Profile

    Group Profile  One of the largest and leading business group in Pakistan  Highly diversified and have strong presence in Textiles, Cement, Banking, Insurance, Power Generation, Hotel Business, Agriculture, Dairy, Real Estate, Aviation and Paper Products  Assets over Rupees 2,000 billion  Provide

  4. Slide 4: Company Profile

    Company Profile  Flagship Company of Nishat Group.  Commenced its business as a partnership firm in 1951  Incorporated as a private limited company in 1959.  Listed on Karachi Stock Exchanges on 27 November, 1961  Largest vertically integrated mill in the country with the largest production fac

  5. Slide 5: Company Profile (continued)

    Company Profile (continued)  The largest composite textile unit and has excellent product mix. Garments Yarn and 9% Comber  Output ranges from yarn Noil 17% to value added products Made Ups 17% such as made-ups and garments. Grey Cloth  Major focus is on value Processed Cloth 27% addition 30% 5

  6. Slide 6: Company Profile: Export Geographical Spread

    Company Profile (continued)  Export oriented Company and Top Exporter of the country  Working relationship with top brands of the world  Major portion of Company’s earnings is export based. The Company has achieved significant geographical diversification in its export sales mix over the years Ge

  7. Slide 7: Company Profile (continued)

    Company Profile (continued)  Leading exporter with almost 3% share in Pakistan’s textile exports USA and Canada  Earner of precious foreign 9% exchange of around US$ 353 Europe million per annum 41%  Earned FPCCI President of Asia, Africa and Pakistan Trophy for a Australia number of years. 50% 7

  8. Slide 8: Company Profile (continued)

    Company Profile (continued)  Established its own power generation facilities at all plant locations  Top quality and highly competent professional resources  First prize for the Best Corporate Report Award for the financial year 2012, 2014 and 2015 by the Joint Committee of ICAP and ICMAP  A Gre

  9. Slide 9: Pattern of Shareholding

    Company Profile (continued) Pattern of Shareholding as on 30 September 2019 Category Number of holders Shares held Percentage Individuals 10,843 175,992,571 50.05 Foreign Investors 75 48,817,263 13.88 Modaraba / Mutual Funds 112 41,787,469 11.88 Joint Stock Companies 176 37,783,746 10.75 Insurance C

  10. Slide 10: Company Profile: Free Float

    Company Profile (continued) Free float shares are 148,492,658 out of total outstanding shares of General Public in 351,599,848 which make up Physical Form, 42.23 %. 25.45% Free Float, 42.23% Directors / Sponsors, 18.35% Associated Government Companies, Holdings, 8.34% 5.63% 10

  11. Slide 11: Management

    Management Board of Directors  Mian Umer Mansha Chief Executive Officer  Mian Hassan Mansha Chairman  Syed Zahid Hussain Director  Mr. Mahmood Akhtar Director  Mr. Farid Noor Ali Fazal Director  Mr. Ghazanfar Husain Mirza Director  Mr. Maqsood Ahmad Director Audit Committee  Syed Zahid Hussa

  12. Slide 12: Business Segments

    Business Segments (continued) Spinning • Production capacity of 82.283 million kgs of yarn per annum. Capacity utilization 88.49%. • Average PC yarn mix of 75% cotton and 25% polyester. Weaving • Production capacity of 313.718 million square meters of fabric per annum. Capacity utilization 95.68% Dy

  13. Slide 13: Business Segments (continued)

    Business Segments (continued) • Faisalabad-Nishatabad 125,760 Spindles Spinning • Faisalabad-Sahianwala 49,536 Spindles • Ferozewatwan 64,272 Spindles and 1,200 Rotars • Bhikki 586 Air Jet Looms Weaving • Lahore 204 Air Jet Looms Dyeing • Lahore 3 Thermosol Dyeing Machines • Lahore 2 Thermosol Dyein

  14. Slide 14: Investment Portfolio

    Investment Portfolio Dividend No of shares Market/ Fair Holding Cost on 30 June Income Sr. Company Relationship held on 30 value on 30 Percentage 2019 during last 10 June 2019 June 2019 years …............Rupees in thousand …............ 1 Nishat Power Limited Subsidiary 51.01 180,632,955 1,806,329

  15. Slide 15: Financial Performance Highlights

    Financial Performance Highlights 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Inc / (Dec) Revenue Rs. (million) 31,536 48,565 44,924 52,426 54,444 51,200 47,999 49,248 53,729 63,499 9,770 Export Sales Rs. (million) 24,223 36,481 34,808 39,633 42,903 40,020 36,090 37,727 40,321 48,392 8,071 Gros

  16. Slide 16: Revenue

    Financial Performance Highlights (continued) Revenue 70,000 63,499 60,000 54,444 52,426 53,729 51,200 48,565 47,999 49,248 50,000 44,924 Rupees in million 40,000 31,536 30,000 20,000 10,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 16

  17. Slide 17: Gross Profit and Profit after Tax

    Financial Performance Highlights (continued) Gross Profit and Profit after Tax 10,000 9,044 9,000 7,846 7,864 7,657 8,000 6,789 7,000 Rupees in million 5,980 6,047 6,239 5,847 5,859 6,000 5,513 5,380 5,550 4,844 4,923 5,000 4,262 3,912 4,097 4,000 3,529 2,915 3,000 2,000 1,000 - 2010 2011 2012 2013

  18. Slide 18: Gross Profit and Profit after Tax to Revenue Ratios

    Financial Performance Highlights (continued) Gross Profit and Profit after Tax to Revenue Ratios 20.00% 18.96% 18.00% 17.25% 16.16% 16.00% 15.11% 14.44% 14.00% 13.00% 11.81% 12.06% 11.15% Percentage 12.00% 10.92% 9.97% 10.13% 10.26% 10.33% 10.00% 9.24% 9.23% 8.65% 7.85% 7.64% 7.63% 8.00% 6.00% 4.00%

  19. Slide 19: Dividend Payout & Dividend Yield

    Financial Performance Highlights (continued) Dividend Payout & Dividend Yield 45.00 40.00 40.43 41.24 40.77 35.00 34.86 35.71 30.00 Percentage 25.00 25.51 23.81 23.95 24.05 24.01 20.00 15.00 10.00 6.56 7.36 5.00 5.80 4.63 4.25 3.57 3.94 3.15 3.37 4.29 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2

  20. Slide 20: Earnings per Share & Dividend per Share

    Financial Performance Highlights (continued) Earnings per Share & Dividend per Share 18.00 16.63 16.66 15.68 16.00 13.78 14.00 14.00 12.12 11.65 12.00 11.13 10.50 10.04 Rupees 10.00 8.00 6.00 4.50 5.00 5.00 4.75 3.50 4.00 4.00 4.00 4.00 3.30 2.50 2.00 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2

  21. Slide 21: Interest Cover Ratio

    Financial Performance Highlights (continued) Interest Cover Ratio 7.00 6.47 6.49 5.99 6.00 5.13 4.93 5.00 4.71 4.38 3.92 4.00 3.52 Times 3.32 3.00 2.00 1.00 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 21

  22. Slide 22: Current Ratio

    Financial Performance Highlights (continued) Current Ratio 1.60 1.51 1.34 1.37 1.40 1.31 1.32 1.26 1.28 1.26 1.20 1.20 1.11 1.00 Times 0.80 0.60 0.40 0.20 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 22

  23. Slide 23: Gearing Ratio

    Financial Performance Highlights (continued) Gearing Ratio 35.00 29.23 30.00 27.33 27.31 25.53 24.70 25.00 21.77 19.88 19.89 20.77 Percentage 20.00 17.22 15.00 10.00 5.00 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 23

  24. Slide 24: Shareholders' Equity

    Financial Performance Highlights (continued) Shareholders’ Equity 100,000 88,763 90,000 82,155 80,000 76,143 75,713 68,589 66,615 70,000 Rupees in million 58,917 60,000 50,000 35,394 37,763 40,000 31,376 30,000 20,000 10,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 24

  25. Slide 25: Return on Equity

    Financial Performance Highlights (continued) Return on Equity 16.00 14.51 14.00 12.10 11.50 12.00 9.65 10.00 Percentage 8.65 8.23 8.00 6.22 6.00 5.41 4.99 4.98 4.00 2.00 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 25

  26. Slide 26: Share Price Analysis

    Financial Performance Highlights (continued) Share Price Analysis 300.00 252.45 250.00 233.66 216.56 215.34 195.08 Rupees per Share 200.00 189.46 167.57 158.68 150.00 140.92 107.40 111.92 114.23 107.90 100.67 94.21 93.34 100.00 89.24 43.12 50.34 47.58 50.00 - 2010 2011 2012 2013 2014 2015 2016 2017

  27. Slide 27: Total Assets

    Financial Performance Highlights (continued) Total Assets 140,000 117,530 120,000 106,599 101,140 102,736 100,545 97,049 100,000 Rupees in million 80,635 80,000 54,089 56,626 60,000 46,182 40,000 20,000 - 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Years 27

  28. Slide 28: Latest Financial Results

    Latest Financial Results Quarter ended Variance 30-Sep-19 30-Sep-18 …………………(Rupees in thousands)……………….. % Revenue 15,933,130 14,297,798 1,635,332 11.44 Cost of Sales (13,775,848) (12,496,205) (1,279,643) 10.24 Gross Profit 2,157,282 1,801,593 355,689 19.74 Distribution & Admin Expenses (1,044,978)

  29. Slide 29: Latest Financial Results Continued

    Latest Financial Results Continued 29

  30. Slide 30: Latest Financial Results Continued

    Latest Financial Results Continued 30 September 2019 30 Jun 2019 Variance Assets …………………(Rupees in thousands)……………….. % Non-current assets Property, plant and equipment 29,477,142 28,968,219 508,923 1.76 Long term investments 33,356,179 34,930,333 (1,574,154) (4.51) Other non-current assets 831,121

  31. Slide 31: Future Outlook

    Future Outlook  Hyundai Nishat Motor (Private) Limited  Investment in Nishat Sutas Dairy Limited  Expansion of Spining Segment  Expansion Weaving Segments  Setting up Towel manufacturing project  Bulk buying of cotton and fabric  Exploration of new markets and expanding customer  Finding of

  32. Slide 32: Questions and Answer Thank you

    Questions and Answer Thank you 32

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