JV with Toyota Boshoku & Toyota Tsusho Corporation
(55%)
Associates/
Investments
Associates
Indus
Motor
Company
JV with Toyota
Motor Corporation
(6.22%)
Agriauto
Industries
(7.35%)
Shabbir
Tiles &
Ceramics
(1.30%)
Habib
Insurance
Company
(4.63%)
Dynea
Pakistan
(4.33%)
Strategic
Investments
SECMC
JV with Govt. of
Sindh, Engro,
Habib Bank,
HUBCO & CMEC
(11.90%)
ThalNova
Power
Thar
JV with HUBCO,
Novatex & CMEC
(26%)
3
Thal Business Highlights
FINANCIALS
• 9M FY23 Revenue: Rs. 25 billion vs. Rs. 27.5 billion in 9M FY22
9M FY23 PBT: Rs. 2.3 billion vs. Rs. 4.6 billion in 9M FY22
•
• Increasing footprint with new entrants - After successful business relation with Hyundai, other OEMs also
exploring localization opportunities.
ENGINEERING
•
Additional wiring harness secured. 2 wheeler business secured.
SEGMENT
•
Deepening relationship with all customers to increase localization
• Management ensured smooth supply to OEMs despite import restrictions
• All possible cost austerity measures has been taken to adjust the overheads according to current business volumes
PACKAGING, BUILDING
•
Jute exports revenue grew vs. SPLY
MATERIAL & ALLIED
•
Packaging making considerable progress to expand export sales.
PRODUCTS
•
Drop in paper cement bags causing a shift to WPP. WPP plant is operating at full capacity.
SEGMENT
•
Laminates division was able to improve margins by selecting a strategic product mix and launching of new products
• Q1 FY2023, SECMC operated smoothly and recorded sales revenue of Rs. 21.7 billion.
ENERGY INVESTMENTS
• SECMC generated positive cash flows Q1 FY2023.
•
ThalNova achieved commercial operations on February 17, 2023.
• ThalNova is supplying power to the grid through Thar-Matiari transmission line.
4
Deteriorating Business Environment - 9M FY23
Business Challenges
Import restrictions/delay in LC retirement constraining operations
High interest rates and rupee depreciation - pressure on margins
in car prices demand shift to low priced/used cars
Non-productiondays at OEMs affecting continuity of supply
Decline in food /carrier bag amid slowing consumer spending
Rising paper prices shift to PP bags.
Actions Taken
Working with banks for timely opening of LCs
Reducing inventory levels to ease liquidity pressure
Exploring diversification opportunities & new revenue sources
Strict cost containment program on-going
5
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Thal Ltd. published this content on 16 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 May 2023 05:09:11 UTC.
Thal Limited is a Pakistan-based company. The Company is engaged in the manufacture of jute goods, engineering goods, packaging, and laminate sheets. The jute operations are located at Muzaffargarh, Punjab, engineering operations at Karachi, Sindh, packaging operations at Hub, Balochistan and Gadoon, Khyber Pakhtunkhwa and laminate operations at Hub, Balochistan. The Company operates through two segments: the engineering segment and the packaging, building material & allied products segment. The Companyâs engineering segment comprises the Thermal & Engine Components Division, and Electric Systems Division. These divisions are primarily focused on the manufacturing of parts for the automotive industry. The Companyâs packaging, building material & allied products segment comprises: Jute Division, Packaging Division, and Laminates Division. The Laminates division operates under the brand name Formite in the engineered surface industry offering technical laminates and laminated boards.
THAL LIMITED 
