Sapphire Textile Mills Limited

Corporate Briefing Session 2022

Contents

1 Sapphire Textile Mills Limited Introduction

2 Strategic / Operational Developments

3 Historical Financial Highlights

4 Financial Results 2022

5 Future outlook
01 Sapphire Textile Mills Limited
Introduction
 Sapphire Textile Mills Limited Introduction
Sapphire Textile Mills Limited (STML) is principally engaged in manufacturing and sales of
yarn, fabrics, home textile products, finishing, stitching and printing of fabrics.

STML through its subsidiaries engaged in business of renewable energy by setting up wind
energy power plants and selling of textile goods through retail outlets / online stores.

FINISHING &
YARN WOVEN FABRIC HOME TEXTILE WIND POWER PLANTS RETAIL STORES
PRINTING OF FABRIC
2.5 million Meters 3.8 million Meters
157,464 Spindles 430 Looms 44 Retail Outlets
202 MW
per month per month
02 Strategic / Operational
Developments
 Strategic / Operational Developments
Spinning segment:
The Company has undertaken capacity enhancement / balancing modernization and
replacement (BMR) of spinning segment. During the year 2022 make addition of 15,359
spindles to meet demand of high quality yarn in both international and domestic market.
Weaving segment:
The Company has undertaken to enhance capacity / BMR of weaving segment and made
addition of 73 looms during the year 2022.
Finishing and Printing segment:
The Company has planned to invest Rs. 2.9 billion and increased its finishing & printing segment
capacity to 7 million meters per month from 3.6 million meters per month which is expected to
complete by 3rd quarter of financial year 2023.
Yarn dyeing segment:
The Company during the year 2022 has made investment of Rs.325 million and enhanced
capacity from 90,000 kg per month to 240,000 kg per month.
Renewable energy:
The Company during the year 2022 has installed solar power plant of 5.1 MW in its weaving
segment and planned to install 5.5 MW in spinning segment in this financial year.
03 Historical Financial Highlights
 Rs in million Sales
70,000 61,373
60,000
50,000 38,471
40,000 34,253 34,030
28,896
30,000
20,000
10,000
-
2018 2019 2020 2021 2022

Rs in million Gross Profit Rs in million Net Profit

15,000 8,000 7,016
11,859
6,000
10,000
5,406 6,350 4,000 3,263
4,835 2,559
5,000 3,536 1,595
2,000 1,179
- -
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
 Rs in million Total Assets
80,000 70,643

60,000 51,798
42,330 43,563 44,446
40,000

20,000

-
2018 2019 2020 2021 2022

Rs in million CAPEX Times Current Ratio

4,488 1.35 1.40
5,000 1.50 1.28
1.18 1.14
4,000
2,581 2,654 1.00
3,000
1,970
2,000 1,453
0.50
1,000
- -
2018 2019 2020 2021 2022 2018 2019 2020 2021 2022
04 Financial Results 2022 vs 2021
Income Statement
+60% Sales Rs. 61,373 million (2021: Rs. 38,471 million)

+87% Gross Profit Rs. 11,859 million (2021: Rs.6,350

million)

+115% Net Profit Rs.7,016 million (2021: Rs. 3,263

million)

+115%
Earning per share Rs.323 (2021: Rs.150)
 Balance sheet Assets
70,643 million 2022 2021 51,798

19,922 million ( 28%) Property, plant and equipment 14,714 million ( 28%)
13,504 million ( 19%) Long term investments 14,273 million ( 28%)

23,653 million ( 34%) Stores and stocks 13,323 million ( 26%)

5,656 million ( 8%) Trade debts 2,634 million ( 5%)

2,988 million ( 4%) Short term investments 3,488 million ( 7%)

3,130 million ( 5%) Taxes refund due form 1,919 million ( 4%)
Government

1,790 million ( 2%) Other assets 1,447 million ( 2%)

Balance sheet Equity and liabilities
70,643 million 2022 2021 51,798 million

26,110 million ( 37%) Shareholders Equity 21,019 million ( 41%)

17,208 million ( 24%) Total Long term loans 16,702 million ( 32%)

7,846 million ( 11%) Trade liabilities 4,922 million ( 10%)

16,943 million (24%) Short term borrowings 7,679 million (15%)

2,535 million (4%) Other liabilities 1,476 million (2%)

 Consolidated Income Statement
2022 2021
Rs. in million Rs. in million
Sales 90,646 58,163
Cost of sales (63,081) (41,374)
Gross profit 27,565 16,789
Value Distribution
Distribution cost (5,005) (3,014)
Administrative and other expenses (2,062) (1,295)
Other income 1,090 1,057
Finance cost (5,240) (3,973)
Share of profit of associated companies 420 74
Profit before taxation 16,768 9,638
Taxation (1,760) (649)
Profit after taxation 15,008 8,989
 Consolidated Balance sheet - Assets
2022 2021

Rs. in million Rs. in million

Property, plant and equipment 77,079 64,884

Long and short

Value term investments
Distribution 8,246 9,088

Stores and stocks 29,981 16,877

Trade debts 19,669 11,977

Cash and banks 7,897 8,770

Other assets 6,699 4,465

Total 149,571 116,061

Consolidated Balance sheet – Equity & liabilities
2022 2021

Rs. in million Rs. in million

Equity of parent shareholders 40,238 30,552

Value Distribution
Non‐controlling interest 12,894 10,811

Long term financing 59,608 54,010

Trade liabilities 12,942 8,521

Short term borrowing 18,213 7,908

Other liabilities 5,677 4,259

Total 149,571 116,061

05 Future Outlook
 Future Outlook

The Global economic scenario has changed completely. The Russian invasion of Ukraine
and the consequent increase in global energy prices have thrown the world into recession.
The higher energy prices leaves less disposable income in the hands of the consumer which
has resulted in reduced demand for non essential products, including textiles. Pakistan has
been exceptionally hurt due to flooding which has resulted in not only loss of lives, damage
of infrastructure, spread of disease, but also substantial damage of agriculture crops
including cotton. This coupled with higher costs of energy, raw materials, interest rates and
other inputs is very damaging for the industry. Due to this deteriorating situation and the
need for substantial imported inputs, there is extreme pressure on the Pak rupee and it is
The Company’s investment in
loosing value in the international market. In addition, due to shortage of foreign exchange,
energy business is expected
the banks are restricting imports. These challenges need toto beyield overcome. The
healthy return.
management is making its best effort to overcome these challenges.Investments in stock market
is also expected to yield good
The Company during the last year achieved remarkable growth in terms ofreturn revenue
as and profitability
in coming years’
however this year is challenging due to subdued demand, volatility in prices ofmarket
raw material andtoallrecover
is expected time
high markup rates. from its lowest level.
Q & A Session
Thank you!