Power portfolio

Power portfolio

Synopsis

Shabbir Tiles and Ceramics Limited

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Shabbir Tiles and Ceramics Limited is primarily engaged in the manufacturing and sale of tiles and trading of allied building products.

The company feels that the tile industry will continue to show healthy growth for next couple of years, as the friendly government policies are leading to development of several mega projects. However, the industry is facing many challenges. These include energy crisis in the shape of gas pressure fluctuations, affecting the production volumes, rupee depreciation and increased logistics costs.

So far, the company has managed the Covid-related issues well, but uncertainty still looms, as the new variants of the pandemic emerge.

The management is also concerned regarding the future of our industry, as the rapid depletion of gas reserves in the country are not currently offset with the availability of reasonably priced alternatives.

The management is doing its utmost to mitigate the controllable risk factors through production optimisation, costs saving initiatives, operational excellence and commercial strategy focused in improving the sales mix.

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The company continued its journey of success with the achievement of expected production and sales volumes in the first quarter. The efforts made by it in the last couple of years by investing in “product improvement and innovation” and “brand building”, coupled with the government’s support to the construction sector, are helping in progress.

The constant pressures on the input costs due to the rupee depreciation, continued increase in energy, raw material costs and an increase in the logistics costs have impacted the overall margins.

During the first quarter of the fiscal year, net turnover increased 15.64 per cent, whereas the gross margins decreased one per cent, as a result of significant cost pressures. The overall profitability-before-tax; however, grew to Rs337 million as against Rs260 million in the same period of the last year.

Shabbir Tiles and Ceramics Limited was incorporated in Pakistan as a public limited company, under the repealed Companies Act 1913 on November 7, 1978 and listed on the Pakistan Stock Exchange Limited.

The company was a private sector enterprise in the ceramic field in Pakistan. It is primarily engaged in the manufacturing and sale of tiles and trading of allied building products.

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