Exide Pakistan : Transmission of Quarterly Report for the Period Ended 30-06-2023

Table of

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

Amin Manji

Mrs. Navin Salim Merchant

S. Haider Mehdi

Chief Financial Officer

S. Haider Mehdi

Audit Committee

Amin Manji - Chairman

Altaf Hashwani

Zaver Hashwani

Salim Abdul Ali - Secretary

Human Resource and Remuneration Committee

Amin Manji - 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

Faisal Bank Limited

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]

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Chairman's Review

I am pleased to present the unaudited financial report of Exide Pakistan Limited for Q1, 2023, along with a performance analysis.

Economic Overview

The fiscal year 2023-24 posed challenges for Pakistan's economy, with modest growth of 0.29% compared to 6.1% the previous year. The industrial sector faced import constraints to avert sovereign default, leading to a 9.9% contraction Jan-May 2023. Agriculture and services also experienced setbacks. GDP growth is projected at 3.5% for fiscal year 2023-24.

Pakistan faces an economic crisis due to global energy challenges, Covid-19, external debt, floods, inflation, and political uncertainty. Attracting inflows from IMF and others posed challenges, but an IMF-approved Stand By Arrangement of US$ 3 billion, with an initial disbursement of US$ 1.2 billion, is expected to ease the situation. This path entails challenges, including meeting IMF benchmarks like increased fuel taxes and energy prices. Foreign exchange reserves rose to US$ 14 billion, supported by IMF, Saudi Arabia, and UAE. Inflation reached 29.4% in June 2023. Trade deficit narrowed by 43% to US$ 27.5 billion in fiscal year 2022-23. Foreign Direct Investment dropped 25% to US$ 1.46 billion, while home remittances decreased 13.5% to US$ 27.0 billion.

Industry Insights

The domestic automobile market saw sales drop significantly, 33% to 59%, in fiscal year 2022-23. Import restrictions, exchange rate fluctuations, and high financing rates impacted vehicle affordability across categories.

Sales and Profitability

Net sales revenue surged by 28.80% to Rs. 7.066 billion due to better prices. Gross profit improved to Rs. 1,575.3 million, supported by higher sales revenue and margins. Selling expenses rose 23.5% due to amplified sales, while admin costs rose 30% due to inflation. Operating profit reached Rs. 1,179.26 million compared to Rs. 207.14 million last year. Financial costs rose to Rs. 179.66 million due to higher borrowings and rates. Profit before tax increased to Rs. 927.97 million from Rs. 118.88 million last year. Profit after tax for the quarter reached Rs. 566.06 million, compared to Rs. 50.30 million. Earnings per share stood at Rs. 72.87, up from Rs. 6.47 last year.

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Future Outlook

The battery industry faces intensified competition from capacity expansion and market changes. Future profitability may be impacted by utility prices, wages, and Rupee devaluation. Our management remains committed to enhancing quality, productivity, cost control, and after-sales service to strengthen competitiveness and market presence.

Acknowledgement

We extend gratitude to our dedicated employees, valued stakeholders, partners, and customers for their unwavering support.

Altaf Hashwani

Chairman

Karachi: August 15, 2023

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