Shabbir Tiles and Ceramics : Transmission of Quarterly Report for the Period Ended 2023-03-31

SHABBIR TILES AND CERAMICS LIMITED

Condensed Interim Financial Statements

For the Third quarter and Nine Months ended

March 31, 2023

(Un-Audited)

CONTENTS

01	Company Information
03	Directors' Report (English and Urdu)
06	Condensed Interim Statement of Financial Position
07	Condensed Interim Statement of Profit or Loss
08	Condensed Interim Statement of Comprehensive Income

1. Condensed Interim Statement of Changes in Equity
2. Condensed Interim Statement of Cash Flows
3. Notes to the Condensed Interim Financial Statements

Shabbir Tiles and Ceramics Limited

COMPANY INFORMATION

1

BOARD OF DIRECTORS

AUDIT COMMITTEE

HUMAN RESOURCES AND REMUNERATION COMMITTEE

CHIEF FINANCIAL OFFICER

COMPANY SECRETARY

AUDITORS

LEGAL ADVISOR

BANKERS

REGISTERED OFFICE AND FACTORY UNIT-1

Rafiq M. Habib

Syed Masood Abbas Jaffery

Muhammad Salman Burney

Imran Ali Habib

Abdul Hai M. Bhaimia

Feroze Jehangir Cawasji

Farhana Mowjee Khan

Feroze Jehangir Cawasji

Imran Ali Habib

Abdul Hai M. Bhaimia

Farhana Mowjee Khan

Feroze Jehangir Cawasji

Muhammad Salman Burney

Farhana Mowjee Khan

Syed Masood Abbas Jaffery

Mustafa Jafar

Ovais Jamani

EY Ford Rhodes

Chartered Accountants

Munawar Malik & Co.

Advocate Supreme Court

Habib Metropolitan Bank Limited

Habib Bank Limited

Dubai Islamic Bank Pakistan Limited

Faysal Bank Limited

Allied Bank Limited

Meezan Bank Limited

Bank Al Falah Limited

15th Milestone, National Highway Landhi Industrial Area, Karachi-75120 Phone: [phone]E-mail: [e-mail]

Chairman

Chief Executive Officer

Director

Director

Director

Director

Director

Chairman

Member

Member

Member

Chairman

Member

Member

Member

Fax: [phone]

URL: http://www.stile.com.pk

REGISTRAR AND SHARE TRANSFER OFFICE

FACTORY UNIT-2

ISLAMABAD

(BUILDING MATERIAL PRODUCTS)

LAHORE

(BUILDING MATERIAL PRODUCTS)

CDC Share registrar Services Limited, CDC House, 99-B, Block 'B', S.M.C.H.S

Main Shahrah-e-Faisal,Karachi-74400.	Phone:	0800 23275
URL:	www.cdcsrsl.com	Email:	[e-mail]
Deh Khanto, Tappo Landhi, District Malir, Bin Qasim Town, Karachi
Phone:	[phone]	Fax:	[phone]

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

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

Shabbir Tiles and Ceramics Limited

COMPANY INFORMATION

STILE EMPORIUM AND DESIGN STUDIOS AND SALES OFFICES

STAR GATE EMPORIUM, KARACHI

FACTORY EMPORIUM, KARACHI

DHA BUKHARI EMPORIUM, KARACHI

DHA 26TH STREET EMPORIUM, KARACHI

BUILD MATE EMPORIUM, KARACHI

NEW TOWN EMPORIUM, KARACHI

DHA EMPORIUM, LAHORE

THOKAR NIAZ BAIG EMPORIUM, LAHORE

LIVIN EMPORIUM, LAHORE

MUREE ROAD EMPORIUM, RAWALPINDI

ISLAMABAD EMPORIUM

PESHAWAR EMPORIUM

FAISALABAD EMPORIUM

HYDERABAD EMPORIUM

MULTAN EMPORIUM

BAHAWALPUR EMPORIUM

WAH CANTT EMPORIUM

GUJRANWALA EMPORIUM

GILGIT BALSTISTAN EMPORIUM

SUKKUR SALES OFFICE

2

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

Karachi.Phone: [phone]

15th Milestone, National Highway, Landhi Industrial Area, Karachi Phone: [phone]

39-C, Bukhari Commercial area, Lane 15, Main Khayaban-e-Ittehad Road

DHA Phase 6, KarachiPhone: [phone]

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

Phone: [phone]

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

Phone: [phone]

Shop No. 3, KDA Scheme No. 7, Chandni Chowk (New Town), Karachi Phone: [phone]

DHA Lahore 164, CCA , Phase 4, Lahore

Phone: [phone]

Metro Cash & Carry, Thokar Niaz Baig Multan Road, Lahore Phone: [phone]

Ferozepur Road: 83 - Main Ferozepur Road, Main Ichhra, Lahore Phone: [phone]

Al Shareef Plaza, Ground Floor, Shamsabad, Murree Road, Rawalpindi Phone: [phone]

Metro Islamabad: Metro Cash & Carry, Sector I-11/4, Islamabad Phone: [phone]

162/408 Tahkal Payan, University Road , Peshawar

Phone: [phone]

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

Phone: [phone]

Shop no. 13 & 14, Fortune Arcade, Jamshoro Road, next to KFC

Near Qasim Chowk, Hyderabad.	Phone: [phone]
Officers Colony, Main Bosan Road, Chungi No. 9, Next to Crystal Mall,
Multan.	Phone: [phone]
Ground Floor, Commercial Building, Khawat No. 199/197, Moza Bandra
Multan Road, Bahawalpur.	Phone: [phone]

Khan Plaza, Khasra No 434, GT Road, near Raja Saab Mall, Wah Cantt Phone: [phone]

Main GT Road, Chan da Qila, opposite Haji Murad Trust Eye Hospital,

Gujranwala

Phone : [phone]

Shop no. 14, Akbar Market, Khomar Yarkot, Gilgit

Phone: [phone]

Tooba Plaza, Mezzanine Floor, Workshop Road, Sukkur

Phone:

Phone: [phone]

3

SHABBIR TILES AND CERAMICS LIMITED

DIRECTORS' REPORT TO THE SHAREHOLDERS

FOR THE THIRD QUARTER AND NINE MONTHS PERIOD ENDED MARCH 31, 2023

The Directors are pleased to present the financial results of your Company for the third quarter and nine months ended March 31, 2023.

Pakistan's economy continues to face multifaceted challenges on account of depleting foreign exchange reserves, un-precedented inflation and measures taken by the Government to curtail import of non-essential raw materials, which severely impacted local manufacturing industries. Delay in finalization of IMF package continued to erode market and business confidence.

Pakistan tiles and ceramics industry has been adversely impacted due to:

1. Slow down of construction projects resulting in suppression of market

1. Increasing input costs due to devaluation of rupee, skyrocketing energy cost and restricted imports of raw materials and machine parts.

All these adverse factors affected the industry to the extent that a number of tile manufacturers had to either shut down their operations or had to curtail their production.

We are glad to report that your Company in this period of turmoil continued its operations at optimum level and able to produce better than expected results due to specific measures taken by the management viz:

1. Initiatives on cost controls and timely pricing decisions o Efficient management of energy mix
   o Development of local sources of raw materials
   o Brand building measures, including advocacy with key architects o Strategy to focus on high value SKUs.

As a result of the above mentioned measures, the gross margins improved as compared to preceding half year. The

financial performance is summarized below:			Rs. in ' 000
	For the quarter ended	For the nine months ended
Particulars	March 31,	March 31,	March 31,	March 31,
	2023	2022	2023	2022
Turnover - net	4,140,556	2,980,500	10,497,831	8,755,489
Gross profit	1,179,411	603,319	2,123,938	2,288,447
Earnings before interest, tax and depreciation	568,539	321,697	756,491	1,403,011
Profit before tax	343,477	112,463	71,091	804,753
Profit / (loss) after tax	143,056	44,800	(53,246)	465,525
Earnings / (loss) per share (Rs. / share)	0.60	0.19	(0.22)	1.95

FUTURE OUTLOOK

Pakistan's economic growth is expected to be slow in the medium-term. Industry output is also expected to shrink with import restrictions, weakened confidence, higher borrowing costs and heightened economic and political uncertainty. Further, inflation will remain high in coming months, due to currency depreciation and recent rise in energy prices (natural gas and petroleum). These cost pressures have a negative impact on builders / developers to slow down their progress towards completion of their projects. However, as soon as the country's political situation becomes stable, it is anticipated that the construction climate will also get better.

The industry needs much needed support to sustain its business operations as regards imports of raw materials. Further, the recent increase in gas tariff and the proposed mechanism of charging higher tariff for comingled natural gas and RLNG due to shortage of indigenous gas would put the industry under survival challenges. The decision makers shall consider the fact that Sindh being its own producer of natural gas should be given priority and the industries established in Sindh should not be charged higher. In addition, sustained supplies of natural gas is extremely imperative for the survival of the Company.

We would like to thank our stakeholders for their continued support and our shareholders for their confidence in the leadership of the Board and management team of the Company. With your continuous support and by the grace of the Almighty, we remain committed to deliver good performance.

On behalf of the Board of Director

SYED MASOOD ABBAS JAFFERY	FEROZE JEHANGIR CAWASJI
Chief Executive Officer	Director

Karachi: April 29, 2023