CORPORATE BRIEFING SESSION

BOLAN CASTINGS LIMITED

INTRODUCTION

• Bolan Castings Limited is a Public Limited Company andlisted on the Pakistan Stock Exchange.

• The Company was incorporated on 15th July, 1982 as aPublic Limited Company by Pakistan AutomobileCorporation Limited (PACO) under the administrativecontrol of Ministry of Production, Government of Pakistan.

• The plant was commissioned in June 1986 with theassistance of Foundry Management & Design Company(FMD), United Kingdom (U.K) and commercial productionwas started in July, 1986.

INTRODUCTION

• The Company was privatized and handed over to a group ofmanagement under a joint collaboration of Millat TractorsLimited and the employees of Bolan Castings Limited on13th June, 1993.

• The main business activity of the company is to producecastings of tractors and automobiles parts.

PRODUCTIN FACILITIES

Bolan Castings Limited, Production facilities consist of :• Two foundry plants which can produce more than 16,000

tons per year of castings in grey and ductile iron• Duplex melting facilities• Induction Melting• High pressure moulding line• Fully computerized green sand plant• New sand preconditioning plant• Sand washing plants• Resin coated sand plant• Finishing shop for shot blasting, fettling, grinding and

painting• Pattern making through CAD/CAM process• An ancillary workshop for the fabrication and maintenance

GROUP COMPANIES

• Millat Tractors Limited

• Millat Equipment Limited

• Millat Industrial Product Limited

• TIPEG Intertrade DMCC

CUSTOMERS

• Millat Tractors Limited• Al-Ghazi Tractors Limited

• Hino Pak Motors Ltd.• Ghandhara Nissan Ltd.• Ghandhara Industries Ltd.• Master Motors Corp. Ltd.• Afzal Motors (Daewoo)

• Millat Equipment Limited• Mecas Engineering Limited• Infinity Engineering Limited

PRODUCTS GALLERY

PRODUCTS GALLERY

PRODUCTS GALLERY

PRODUCTS GALLERY

ECONOMIC OVERVIEW

• In the fiscal year 2018-19 Pakistan's economy slowed downsharply, hitting a nine-year low at 3.3%.

• Major challenges during the fiscal year 2018-19, weredwindling foreign exchange reserves, low exports, highinflation and devaluation of rupee.

• The agriculture sector registered a growth rate of 0.85 %against the target of 3.80 % and industrial sector 1.40 %against 7.60 %.

BUSSINESS REVIEW

• Tractor and its vending industry witnessed decline in fiscal year2018-19 after two good years.

• The decline in sales of tractors has severely hampered salesand production of the Company.

• The upward surge of the foreign currency exchange ratesversus the Pakistani Rupees and oil prices has also added tothe input cost of the Company.

• All these factors have predominantly contributed towards thelosses of the Company.

TWO YEARS AT A GLANCE

(Rupees in thousand)

2018-19 2017-18

INCOME

Revenue from contracts 1,513,636 2,299,931

Gross Profit / (Loss) (149,777) 328,202

Gross Profit / (Loss) % -9.90% 14.27%

Profit/(Loss) after tax (238,999) 133,402

Profit/(Loss) after tax % -15.79% 5.80%

Earnings per share ( Rs.) -20.83 11.63

Dividend ( % ) - 25

TWO YEARS AT A GLANCE

(Rupees in thousand)

2018-19 2017-18

FINANCIAL POSITION

Current Assets 808,414 772,745

Less: Current Liabilities 745,231 332,973

Net Working Capital 63,183 439,771

Property, Plant and Equipment 259,216 232,681

Others-Non Current Assets 114,637 51,471

437,036 723,924

Less : Other Liabilities 55,234 84,406

Shareholders' Equity 381,802 639,518

COMPANY PERFORMANCE

Production (MT)

11,368

8,436

11,566

16,294

8,694

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2014-15 2015-16 2016-17 2017-18 2018-19

( M.T )

COMPANY PERFORMANCE

Sales Value – Sales Tonnage

1,695,718

1,333,476

1,744,098

2,299,931

1,513,636

10,966

8,602

11,199

14,723

9,215

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2014-15 2015-16 2016-17 2017-18 2018-19

Sales Value Sales Tonnage

(Rs. in 000) (MT)

COMPANY PERFORMANCE

Gross Profit/(Loss)(Rs. in ‘000)

189,450

140,876

246,628

328,202

(149,777)

(250,000)

(150,000)

(50,000)

50,000

150,000

250,000

350,000

2014-15 2015-16 2016-17 2017-18 2018-19

COMPANY PERFORMANCE

Profit after Tax(Rs. in ‘000)

46,914 25,870

97,776 133,402

(238,999)

(350,000)

(250,000)

(150,000)

(50,000)

50,000

150,000

2014-15 2015-16 2016-17 2017-18 2018-19

COMPANY PERFORMANCE

Earning Per Share (Rs.)

4.09 2.25

8.52 11.63

(20.83) (25.00)

(20.00)

(15.00)

(10.00)

(5.00)

-

5.00

10.00

15.00

2014-15 2015-16 2016-17 2017-18 2018-19

PRINCIPLE RISKS

• Any change in the tractor sale and government policy mayhave a direct impact on our sales and profitability.

• Foreign exchange risk persists on import of raw materialmay increase cost of production.

• Interest rate risk may increase cost of borrowings whichmay decrease profitability.

• Changes in relevant income tax, sales tax and customrelevant laws, may have direct impact on sales andprofitability.

FUTURE PROSPECTUS

• The tractors industry expected to retain same trajectoryin FY 2019-20.

• Our main customer Millat Tractors Limited is alsoplanning to focus on export, which if materialize willextend support to the sales of BCL.

• All possible measures are being taken for reducing costalong with continuous emphasis on financial controls andoperational efficiencies.

Q & A Session

Thank You