Exide Pakistan : Transmission of Quarterly Report for the Period Ended 2022-12-31

Contents

1. Corporate Profile
2. Chairman's Review

UNCONSOLIDATED FINANCIAL STATEMENTS

1. Condensed Interim Statement Of Financial Position
2. Condensed Interim Profit or Loss Account (Unaudited)
3. Condensed Interim Cash Flow Statement (Unaudited)
4. Condensed Interim Statement Of Changes In Equity (Unaudited)
5. Notes To The Condensed Interim Financial Information (Unaudited)

CONSOLIDATED FINANCIAL STATEMENTS

1. Condensed Interim Statement Of Financial Position
2. Condensed Interim Profit or Loss Account (Unaudited)
3. Condensed Interim Cash Flow Statement (Unaudited)
4. Condensed Interim Statement Of Changes In Equity (Unaudited)
5. Notes To The Condensed Interim Financial Information (Unaudited)

CORPORATE PROFILE

Board Of Directors

Altaf Hashwani - Chairman

Arshad Shehzada - MD/CEO

Arif Hashwani

Hussain Hashwani

Zaver Hashwani

Ayub Hameed

Mrs. Navin Salim Merchant

S. Haider Mehdi

Chief Financial Officer

S. Haider Mehdi

Audit Committee

Ayub Hameed - Chairman

Altaf Hashwani

Zaver Hashwani

Salim Abdul Ali - Secretary

Human Resource and Remuneration Committee

Ayub Hameed - Chairman

Arif Hashwani - Member

Altaf Hashwani - Member

Muhammad Shayan - Secretary

Bankers

Allied Bank Ltd.

Bank Alfalah Limited

BankIslami Pakistan Ltd.

Habib Bank Ltd.

Habib Metropolitan Bank Limited

JS Bank Ltd.

MCB Bank Ltd.

Meezan Bank Limited

Standard Chartered Bank (Pakistan) Ltd.

United Bank Ltd.

Dubai Islamic Bank Pakistan Limited

National Bank of Pakistan

Auditors

Yousuf Adil

Solicitors

Orr, Dignam & Co.

Registered Office

A-44, Hill Street, Off.

Manghopir Road, S.I.T.E., Karachi- Pakistan.

Website: www.exide.com.pk

E-mail: [e-mail]

Chairman's Review

I am pleased to present on behalf of the Board of Directors, unaudited interim nancial results of your Company for the third quarter that ended December 31, 2022.

The Economy

Pakistan's economy is currently passing through a challenging phase due to foreign exchange issues, and high levels of external debt, without proper planning and optimum utilization. The cash-strapped country struggles to attain in ows from bilateral and multinational institutions while the crucial IMF program remains in the doldrums. World Bank while committing US$ 2 billion in loans for the ood-affected areas, revised downward Pakistan's macroeconomic projections in the aftermath of severe oods by lowering GDP growth to 2 percent in the year 2022-23, amid hiking in ation as well as worsening scal and external de cit. In ation jumps to 24.5

• in December 2022 and is expected to remain high due to the potentially strong impact of the rupee devalua- tion and consistently high commodity and energy prices. Pakistan's trade de cit shrank by 32.7 percent to US$

17.13 billion during the rst half of the current year as compared to US$ 25.44 billion during the same period last year. Imports shrank by 22.6 percent to US$ 31.38 billion from US$ 40.56 billion while exports decreased by 5.8 percent to US$ 14.25 billion from US$ 15.12 billion during the same period last year. The current account de cit dipped almost 60 percent to US$3.67 billion in the rst half of the current year from US$ 9.09 billion in the same period last year due to lower imports on account of restriction on the opening of L/C by the State Bank of Pakistan. Pakistan's foreign exchange reserves are in dire starts. SBP reserves fell to US$ 4.3 billion as of 6th January 2023, a signi cant decline from US$16.6 billion in January 2022. Foreign Direct Investment declined by 59 percent to US$ 461 million from US$ 1124 million in the same period last year. Home remittances amounted to US$ 14.1 billion in the rst half of year FY23, compared to US$ 15.8 billion last year depicting a decline of US$ 1.7 billion down by 11 percent. The primary reason for the decline is the massive gap in the exchange rate of the inter-bank market and grey market of almost Rs.30 per dollar. Challenging economic indicators took a toll on large-scale manufacturing which declined by 3.58 per cent in July - November 2022 compared to the same period last year.

The Industry

Auto sales baring the bus segment recorded a sharp decline in sales ranging from 28.4 to 56.4 percent during the rst half of the year 2022-23. Inefficiencies and unfair practices in the domestic automobile market, import restrictions, the phenomenal increase in automobile prices due to exchange rate uctuations and the high automobile nancing rate due to SBP's restrictive monetary policy have all but made it impossible for the middle class to purchase a new vehicle. Car sales during the half year under review decreased by 40 percent from 114,774 units to 68,900, whereas the sale of LCVs, vans and jeeps decreased by 28 per cent to 15,188 units from 21,202 units. Truck and buses sale decreased by 36 percent from 3062 units to 1947 units. Farm tractors sale decreased by 57 per cent to 11,513 units from 26,479 units, and two / three wheeler sales decreased by 33 percent from 938,355 units to 627,835 units.

Production

Production activities were effectively planned and adjusted to the market demand both in terms of quantity and quality. Stress on quality control at all stages of the production process was implemented with great vigour for further strengthening quality standards of the products of your Company.

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Sales

Net Sales turnover of the Company for the third quarter under review increased to Rs.5.411 billion up by 80.13 percent as compared with Rs3.004 billion during the same period last year. Cumulative sales for the nine months increased from Rs.10.899 billion to Rs.15.604 billion up by 43.2 percent as compared to the corresponding period of last year, on account of better sales prices.

Profitability

Gross pro t for the quarter under review increased from Rs.374.15 million to Rs.714.12 million up by 90.86 percent on account of better sales revenue and improved margins. Selling and distribution expenses increased by 43.51 percent due to an increase in net sales revenue of 80.13 per cent. Operating pro t of Rs. 290.18 million was recorded as against Rs.72.05 million in the corresponding period of last year. Financial charges increased from Rs.69.39 million to Rs.151.69 million, on account of higher borrowings and markup rates. Pro t before tax for the nine months under review was Rs.518.50 million as compared to Rs.130.16 million last year. Pro t after tax was Rs.323.46 million as compared to a loss of Rs.6.07 million last year. Earnings per share recorded Rs.41.64 as against a loss of Rs.0.78 last year.

Future Prospects

It is anticipated that the indigenous organized battery industry will face competition due to the capacity expansion of existing battery plants and the changing market dynamics. It is projected that the pro tability in the remaining period of the year will be affected due to an increase in prices of basic raw materials, utilities, wages and markup rates if the corresponding increase in the selling prices is not absorbed by the market. Nevertheless, your management is determined to avail full bene ts of the opportunities by continued focus on quality improvement, productivity, cost control and after-sales service to improve its competitiveness and market share.

Acknowledgement

On my behalf and behalf of the Board of Directors of your Company. I take this opportunity of acknowledging the devoted and sincere services of employees of all cadres of the Company. I am also grateful to our bankers, shareholders, M/s Furukawa Battery Japan, vendors, main dealers, retailers and valued customers including M/s Fauji Fertilizer Bin Qasim Limited, the Original Equipment Manufacturers and government organizations for their trust in us.

Altaf Hashwani

Chairman

Karachi - January 28, 2023

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