Baluchistan Wheels : Nine Month / 3rd Quarterly Report March 2024

NINE MONTH / 3RD

QUARTERLY REPORT

MARCH 2024

w w w. b w h e e l s . c o m

CONTENTS

Company Information	03
Directors' Report to the Shareholders (English)	04
Directors' Report to the Shareholders (Urdu)	06
Condensed Interim Statement of Financial Position	07
Condensed Interim Statement of Profit or Loss	08
Condensed Interim Statement of Comprehensive Income	09
Condensed Interim Statement of Cash Flows	10
Condensed Interim Statement of Changes of Equity	11
Notes to the Condensed Interim Financial Statements	12

3

COMPANY INFORMATION

CHAIRMAN (Non-Executive Director)			EXTERNAL AUDITORS
Mr. Anis Wahab Zuberi			BDO Ebrahim & Co.
			(Chartered Accountants)
CHIEF EXECUTIVE (Executive Director)
Mr. Razak H.M. Bengali			LEGAL ADVISOR
			Mohsin Tayebaly & Company
INDEPENDENT DIRECTORS			(Advocates)
Syed Zubair Ahmed Shah
Mr. Aamir Amin			TAX CONSULTANTS
Mr. Irfan Ahmed Qureshi			Baker Tilly Mehmood Idrees Qamar
Mr. Muhammad Javed			(Chartered Accountants)
EXECUTIVE DIRECTORS			BDO Ebrahim & Co.
Mr.Muhammad Siddique Misri	Director Marketing/ Business Development		(Chartered Accountants)
Mr. Muhammad Irfan Ghani	Chief Operating Officer
			BANKERS
NON-EXECUTIVE DIRECTOR			Habib Bank Limited
Mrs. Saba Nadeem			Bank Al-Habib Limited
			Faysal Bank Limited
CHIEF FINANCIAL OFFICER			National Bank of Pakistan
Mr. Muhammad Yasin Yunus Ladha
			SHARE REGISTRAR
COMPANY SECRETARY			CDC Shares Registrar Service Ltd.
Mr. Muhammad Asad Saeed			CDC House ,99-B block B, S.M.C.H.S Main
			Shahra e faisal Karachi - 74400.
AUDIT COMMITTEE			UAN#[phone]
Syed Zubair Ahmed Shah	Independent Director	Chairman	Fax:[phone]
Mr. Anis Wahab Zuberi	Non-Executive Director	Member	Email : [e-mail]
Mr. Aamir Amin	Independent Director	Member
Mr. Irfan Ahmed Qureshi	Independent Director	Member	HEAD OFFICE
Mrs. Saba Nadeem	Non-Executive Director	Member	1st Floor,State Life Building # 3
			Dr.Ziauddin Ahmed Road,Karachi.
HUMAN RESOURCES AND REMUNERATION COMMITTEE		E-mail:[e-mail]
Mr. Muhammad Javed	Independent Director	Chairman	Website:http://www.bwheels.com
Syed Zubair Ahmed Shah	Independent Director	Member	Telephone # [phone]
Mr. Anis Wahab Zuberi	Non-Executive Director	Member	Fax # [phone]
Mr.Muhammad Irfan Ghani	Chief Operating Officer(Executive Director)	Member
			FACTORY AND REGISTERED OFFICE
MANAGEMENT COMMITTEE			Main RCD Highway, Hub Chowki,
Mr. Razak H.M. Bengali	Chief Executive		Lasbella, Baluchistan.
Mr.Muhammad Siddique Misri	Director Marketing/ Business Development		Telephone # [phone],28
Mr.Muhammad Irfan Ghani	Chief Operating Officer		Fax # [phone]
Mr.Muhammad Yasin Yunus Ladha	S.G.M (Finance) / Chief Financial Officer (CFO)
Mr. Fareed Abdul Razzak	G.M (Finance)/Deputy CFO
Syed Pervaiz Akhter	G.M (HR/IR)
Mr. Muhammad Asad Saeed	D.G.M (Finance) / Company Secretary
Mr. Kumail Irfan Ghani	D.G.M (Supply & Services)
CHIEF INTERNAL AUDITOR
Mr. Atif Iqbal	Sr. Manager

4

DIRECTORS' REPORT

The Directors take pleasure in presenting the Un-AuditedCondensed Interim Financial Statements for the nine months' ended March 31, 2024.

FINANCIAL RESULTS

During the period (July, 2023 -March2024) the Company had overall consolidated revenue of Rs. 1,637 million as compared to Rs. 1,359 million of corresponding period of last year (increased by 20%).

The car wheels sale was Rs. 553 million as compared to Rs. 624 million in the corresponding period of previous year (decreased by 11%). Likewise, the Truck/Bus wheels sale declined from Rs.148 million to Rs. 143 million (decreased by 3%),whilst the sale of Tractor wheels increased from Rs. 523 million to Rs. 882 million (increased by 69%).

The Gross Profit increased by 26% to Rs. 329.038 million as against Rs. 261.324 million. The Company earned Net Profit after tax of Rs.163.392 million as against Rs.105.935 million in the corresponding period of last year, increased by 54%.

The improvement in gross profit and net profit is mainly due to surge in the production and sale of tractor wheels owing to sudden jump in tractors sales amid reports of good wheat and cotton crops. However, the sale of car wheels and truck/bus wheels witnessed drop due to lower demand in cars and truck/bus segments. The substantial increase in other income is primarily due to profit on investment of surplus funds in treasury bills,exchange gains and reversal of prior year tax provision also contributed to net profit.

There are no significant changes in Contingencies and Commitments as disclosed in Note 28 of the Financial Statements for the year ended June 30, 2023.

FUTURE OUTLOOK

The escalating/surging auto prices coupled with expensive auto financing on account of record high interest rates and low purchasing power of consumers resulted in significant reduction in auto sales and low performance in the nine months' period July, 2023 - March, 2024. However, easing auto-part imports and stable currency would improve the production and sales volumes of autos inthe remaining quarter April - June, 2024. Further, bumper crops yield primarily due to low base of last period amid flood would increase the tractors' sales as well.

5

The management being conscious of the challenges that lie ahead is continuously evolving strategies and adopting measure to meet future challenges and to maintain business growth.

ACKNOWLEDGEMENT

We take this opportunity to thank our customers and all the stakeholders who reposed their trust and confidence in the company and acknowledge the efforts of the entire BWL team including our staff and workers and look forward to their continued support.

May Allah bless us and help us to achieve success for your company and for the benefit of all stake holders, and the Country in general. Aameen!

For and on Behalf of the Board

Razak H.M. Bengali	Muhammad SiddiqueMisri
Chief Executive	Director

Karachi:April 26, 2024

6

7

8

BALUCHISTAN WHEELS LIMITED

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS (UNAUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024

Note

Nine months ended	Quarter ended
March, 31	March, 31	March, 31	March, 31
2024	2023	2024	2023

-----------------------------------Rs. in '000------------------------------------

Turnover - net	14
Cost of sales	15
Gross profit
Distribution cost
Administrative expenses
Other expenses
Finance cost
Other income	16
Profit before taxation
Taxation
Current
Prior
Deferred

Profit for the period

1,636,965

(1,307,927)

329,038

(62,046)

(109,986)

(17,146)

(4,782)

(193,960)

96,287

231,365

(74,037)

4,584

1,480

(67,973)

163,392

1,358,850

(1,097,526)

261,324

(43,477)

(90,614)

(35,125)

(3,644)

(172,860)

67,647

156,111

(51,516)

-

1,340

(50,176)

105,935

610,885

(513,968)

96,917

(23,573)

(35,270)

(4,903)

(1,153)

(64,899)

34,146

66,164

(19,796)

(4,863)

-

(24,659)

41,505

473,848

(367,392)

106,456

(16,419)

(28,963)

(15,779)

(1,060)

(62,221)

24,777

69,012

(21,122)

-

-

(21,122)

47,890

	-------------------------	(Rupees)	--------------------------
Earnings per share- basic and diluted	12.25	7.94			3.11	3.59

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

9

BALUCHISTAN WHEELS LIMITED

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024

	Nine months ended		Quarter ended
	March, 31		March, 31		March, 31		March, 31
	2024	2023	2024	2023
	------------------	Rs. in '000-------------------
Profit for the period	163,392	105,935	41,505	47,890
Other comprehensive income	-	-	-	-
Total comprehensive income for the period
163,392	105,935	41,505	47,890

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER

10

BALUCHISTAN WHEELS LIMITED

CONDENSED INTERIM STATEMENT OF CASH FLOWS (UNAUDITED)

FOR THE PERIOD ENDED MARCH 31, 2024

CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation

Adjustments for non-cash items: Depreciation on operating fixed assets

Loss/gain on sales of property, plant and equipment Finance costs

Provision for slow moving stores spares and stock in trade - net Provision for compensated absences

Provision for warranty claims - net Provision for employees' benefits Dividend income

Government grant

Profit on mutual fund/ sukuk

Profit on savings accounts / treasury bills Gain/loss on reemption/revaluation of listed shares

Change in current assets and current liabilities Stores, spare parts and loose tools Stock-in-trade

Trade debts

Loans and advances

Trade deposits & short-term prepayments and other receivables Trade and other payables

Sales tax

Cash generated from operations

Income tax paid

Employees' benefits paid

Long-term loans and advances - net

Long-termdeposits-net

Net cash generated from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES Fixed capital expenditure

Proceeds from disposal of property, plant and equipment Profit received on saving accounts / treasury bills Short-term investments made during the period - net

Profit on mutual fund/ sukuk received Dividend received

Net cash generated from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES Liabilities against asset subject to finance leases -netFinance cost paid

Dividend paid

Net cash (used in) financing activities

Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period

March, 31

2024

--------(Rupees

231,365

36,060

139

4,782

390

(74)

567

13,104

-

-

(1,451)

(88,140)

(560)

(35,183)

196,182

6,425

149,270

(69,393)

17,285

4,195

(3,390)

24,215

128,607

324,789

(86,842)

(8,351)

3,128

305

233,029

(11,925)

4,622

80,274

(170,942)

1,451

-

(96,520)

(14,532)

(4,782)

(112,146)

(131,460)

5,049

18,772

23,821

March, 31

2023 in '000)--------

156,111

33,354

(6)

3,644

1

747

(891)

4,455

(153)

(91)

(507)

(67,201)

928

(25,720)

130,391

4,609

(26,772)

(31,527)

22,700

(7,830)

123,904

33,269

118,353

248,744

(91,129)

(2,795)

(1,658)

1,760

7,276

(1,110)

3,520

58,294

(21,822)

273

153

39,308

12,108

(3,644)

(95,833)

(87,369)

(40,785)

66,034

25,249

The annexed notes 1 to 22 form an integral part of these condensed interim financial statements.

CHIEF EXECUTIVE OFFICER

DIRECTOR

CHIEF FINANCIAL OFFICER