GTYR | Ghandhara Tyre and Rubber Company Limited (Formerly: General Tyre) Transmission of Quarterly Report for 1st Quarter Ended September 30, 2023

Innovating

in Harmony

with

GERMAN TECHNOLOGY

TESTED IN JAPAN & EUROPE

Natu re

L Y 30	2
UQA T E R SEPTEMBER,	0
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GTR Tyres, a symbol of harmony between cutting-edge technology and nature. Committed to the environment, we proudly hold ISO certifications for Quality Management (ISO9001), Environmental Management (ISO 14001), and Health & Safety Management (ISO 45001). These underscore our promise of a greener future for generations to come. With over 55 years of expertise, GTR Tyres are masterfully manufactured using German Technology and tested in Japan & Europe, minimizing our environmental

footprint and paving the way for a

sustainable future.

C O N T E N T

03 Company Profile

04 Directors' Review

07 Directors' Review (In Urdu)

08 Condensed Interim Statement Of Financial Position

1. Condensed Interim Statement Of Profit Or Loss Account
2. Statement Of Changes In Equity
3. Condensed Interim Statement Of Cash Flows (Un-audited)
4. Notes To And Forming Part Of The Condensed Interim financial Statements (Un-audited)

COMPANY PROFILE

Board of Directors*		Major Bankers
Lt Gen (R) Ali Kuli Khan Khattak	- Chairman	Al-Baraka Bank Pakistan Limited
Mr. Hussain Kuli Khan	- Chief Executive	Askari Bank Limited
Mr. Ahmad Kuli Khan Khattak		Bank Al-Falah Limited
Mr. Ikram-ul-Majeed Sehgal		Dubai Islamic Bank Pakistan Limited
Mr. Manzoor Ahmed		Faysal Bank Limited
Mr. Muhammad Kuli Khan Khattak		Habib Bank Limited
Mr. Naeem Sattar		Habib Metropolitan Bank Limited
Mrs. Nazia Qureshi		JS Bank Limited
Syed Ahmed Iqbal Ashraf		MCB Bank Limited
Mr. Umair Aijaz		National Bank of Pakistan
		Samba Bank Limited
Company Secretary		The Bank of Punjab
Mr. Khawer Hayat		United Bank Limited

Chief Financial Officer	Registered Office & Factory
Mr. Siraj A. Lawai	H-23/2, Landhi Industrial Trading Estate,
	Landhi, Karachi.
Board Audit Committee*	Phone : [phone]
Lt Gen (R) Ali Kuli Khan Khattak	UAN : 021-111 487 487
Mr. Ahmad Kuli Khan Khattak	Fax : [phone]
Mr. Manzoor Ahmed	Website : www.gtr.com.pk
Mr. Naeem Sattar
Syed Ahmed Iqbal Ashraf	Branch Offices:
	Islamabad
Board Human Resource & Remuneration Committee*	Plot No. 148-149, Khuda Baksh Road, Saraan,
Lt Gen (R) Ali Kuli Khan Khattak	Kahuta, Industrial Triangle,
Mr. Ahmad Kuli Khan Khattak	Kahuta Road, Hummak
Mr. Hussain Kuli Khan	Islamabad.
Mr. Ikram-ul-Majeed Sehgal	Phone : 051 - 5971612-13, 051 - 5971650
Mr. Manzoor Ahmed	Fax : 051 - 5971615
Mrs. Nazia Qureshi
Mr. Umair Aijaz	Lahore office / Customer Care & Service Centre
	Plot No. 20, Shahrah-e-Fatima Jinnah, Lahore.
Auditors	Phone : [phone]
Shinewing Hameed Chaudhri & Co.	Fax : [phone]
Chartered Accountants
	Multan
Legal Advisor	Plot No. 758-759/21, Khanewal Road, Multan
Ahmed & Qazi Advocates & Legal Consultants	Phone : [phone]
	Fax : [phone]
Share Registrar
CDC Share Registrar Services Limited.	Sukkur Warehouse
CDC House 99-B,Block-B, S.M.C.H.S.,	Plot No. B30/8, Site Area, Sukkur.
Main Shahra-e-FaisalKarachi-74400	Phone : [phone]
Customer Support Services(Toll Free) 0800-CDCPL (23275)
Fax: [phone], Email: [e-mail]
Website: www.cdcsrsl.com
* Sequence of names in alphabetical order	Q U A T E R L Y
	2023
	03

DIRECTORS' REVIEW

The Directors are pleased to present the unaudited condensed interim financial statements of Ghandhara Tyre and Rubber Company Limited (the Company) for the first quarter ended September 30, 2023.

BUSINESS REVIEW

Net sales in value terms for the first quarter ended September 30, 2023 were Rs. 4.84 billion as compared to Rs. 3.20 billion in the same period last year, showing growth of 51%.

Sales for the period under review was improved from last period mainly due to enhanced focus on Replacement Market (RM). The Original Equipment Manufacturers (OEMs) of passenger car and light truck were hampered by restricted opening of letter of credits (LCs) for CKDs, increase in car financing rates and stringent conditions on new car financing. Whereas farm tyre sales improved in both RM and OEM segment, owing to better crop and increase in crop support prices by the Government.

The export sales of the Company for the period were Rs. 12 million as compared to Rs 37 million in the same period last year, as tyres could not be exported to Afghanistan due to tense border situation. The Company exported its first consignment to African market during the quarter. The Company is continuously exploring opportunities to expand its export sales to other countries to partially offset the sales impacted by the OEM segment.

The gross profit for the period was Rs. 758 million as compared to Rs. 567 million in same period last year. Gross profit margin was 15.6% as compared to 17.7% in same period last year. Lower gross margin was mainly due to higher utility prices, use of LPG during natural gas load shedding and increase in minimum wages partly offset by better sales mix, stability of raw material prices and enhanced focus on RM.

The finance cost for the period was Rs. 414 million as compared to Rs. 286 million in the same period last year. Increase in financial cost is mainly attributable to increase in discount rate by State Bank of Pakistan (SBP) and higher working capital requirements consequent to devaluation of Pak Rupee, partially offset by better working capital management.

The independent rating agency PACRA has maintained Company's long-term rating to A+ and short-term rating to A1 on August 1, 2023 after evaluating business / financial risk profile of the Company. This rating reflects reputable business profile of the Company in the automobile and allied sector.

As a result of the factors mentioned above, profit after tax for the first quarter ended September 30, 2023 was Rs. 69.5 million as compared to profit after tax of Rs. 18 million reported in same period last year.

FUTURE PROSPECTS

Recent regulatory and administrative measures by the Government to curb smuggling are very encouraging for local industry. These measures, if continued on sustainable basis, will be helpful in improving the economic situation of our country. Under invoicing and smuggling is not only affecting the local industry but also depriving the Government of its due tax revenue. These measures will result in higher tax revenue for the Government and provide level playing field to the local industry and enable them to provide employment.

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Stringent regulations for exchange companies and action against illegal activities in foreign exchange market by the Government resulted in appreciation of Pak Rupee, which is good omen for the local industry.

We expect that improved agriculture outlook due to better crops and higher support prices would support farm tyre sales in both RM and OEM segments in coming months.

In its latest monetary policy statement, Monetary Policy Committee expects inflation to remain on downward trajectory, especially from the second half of this year. This indicates ease in monetary policy, which is expected to bode well for the company.

The Company is also working on strategies to reduce cost. Moreover, it is continuously working on developing new sizes and designs for both OEM and RM segments, some of which have already been commercialized and being sold in OEM and RM segments.

Despite the difficult economic times and competitive pressures, we are confident that we would navigate through these challenges with determination and unwavering support of our stakeholders. We believe that the long- term growth potential of the business is intact.

The Board would like to thank all our OEM and Replacement market customers for their patronage and loyalty with the Company's products.

The Board also offers thanks to its financial institutions for providing support, as solicited. The Board also appreciates the dedicated services rendered by the employees and the management in difficult economic time.

Hussain Kuli Khan	Nazia Qureshi
Chief Executive	Director
Karachi
October 25, 2023

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CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

AS AT SEPTEMBER 30, 2023

			September 30, June 30,
	Note
	2023		2023
			(Un-audited)			(Audited)
EQUITY AND LIABILITIES			--- Rupees in '000 ---
SHARE CAPITAL AND RESERVES
Authorised capital
125,000,000 (June 30, 2023: 125,000,000) ordinary shares
	1,250,000
of Rs 10 each			1,250,000
Issued, subscribed and paid-up share capital			1,219,334
		1,219,334
Revenue Reserve
Unappropriated profit		1,130,295		1,060,795
Capital Reserves
Reserve for capital expendtiure			1,000,000			1,000,000
Surplus on revaluation of leasehold lands			2,473,748			2,473,748
		3,473,748		3,473,748
TOTAL EQUITY		5,823,377		5,753,877
LIABILITIES
NON CURRENT LIABILITIES
Long term finances			485,281
			555,592
Staff benefits			511,027			486,964
Deferred liabilities			146,319			157,402
Long term deposits from dealers			12,130			11,630
Deferred tax - net			58,740			48,756
		1,213,497		1,260,344
CURRENT LIABILITIES
Current maturity of long term finances			274,310			273,579
Current maturity of deferred liabilities			41,332			38,549
Short term finances			1,896,272			1,824,575
Running finances under mark-up arrangements			4,895,552			4,426,247
Trade and other payables	5		3,753,784			3,978,092
Unclaimed dividend			19,378			19,332
Accrued mark-up			380,704			375,397
Provisions			323,925			324,514
		11,585,257		11,260,285
TOTAL LIABILITIES		12,798,754		12,520,629
TOTAL EQUITY AND LIABILITIES		18,622,131		18,274,506
Contingencies and commitments	6

Siraj A. Lawai	Hussain Kuli Khan	Nazia Qureshi
Chief Financial Officer	Chief Executive	Director

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