Author Topic: GTYR -- General Tyres and Rubber Co.  (Read 27502 times)

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Offline Poker Face

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GTYR -- General Tyres and Rubber Co.
« Reply #-1 on: April 27, 2011, 02:52:01 PM »
General Tyre announced its 9 month result where the company posted a profit after tax of Rs. 235 million as compared to Rs. 207 million over the same period last year. Earning per share clocked in at 3.94 as compared to 3.46; i.e 14% higher. net sales have shown a good  increase of 27%.

eps for q3 alone stood at 1.42 as compared to 0.08 over the same period last year, i.e a 1675% improvement.

At its last closing price of 24.50, the stock currently trades at low price to earning multiple of 4.7x and dividend Rs. 2/- per share.
« Last Edit: January 22, 2016, 12:51:40 PM by M&M »
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GTYR -- General Tyres and Rubber Co.
« Reply #-1 on: April 27, 2011, 02:52:01 PM »

Offline Poker Face

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Re: GTYR - General Tyres and Rubber Co.
« on: August 17, 2011, 02:25:13 PM »
GTYR CY 2011 eps 4.32 dps 2.50
CY 2010 eps 3.65 dps 2.00
profit is 18% higher yoy mainly on account of 17% higher sales
currently trading at P/E multiple of 5.4x and dividend yield 10.8%

The above figures do not reflect the recommended dividend of 25% as the company's accounting policy reflects dividend as a liability in the period in which it is approved by the shareholders.

STANCE: HOLD {BUY below 21 and SELL above 27}
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Offline Poker Face

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Re: GTYR - General Tyres and Rubber Co.
« Reply #1 on: March 08, 2012, 11:26:09 PM »
General Tyre to invest Rs500m

KARACHI, March 6: General Tyre and Rubber Company (GTR) will invest approximately Rs500 million this year in new motorcycle tyre production and balancing modernisation and renovation (BMR).

GTR Chief Executive Shahid Hussain told Dawn that the investment this year would be double than last year. The company will manufacture two- wheeler tyres due to its huge market, with 16-17 per cent growth in bike production every year.

He added that trial production of two wheeler tyres will commence in the last quarter of 2012.

He, however, said that the company’s overall production of various kinds of tyres may see a slight growth to 1.6 million tyres by the end of current fiscal year as compared to 1.50 million tyres produced in 2010-2011.

The company has the capacity to produce 2.25 million tyres per annum.

He said that a sharp drop in tractor production made an adverse impact on tractor tyre production target otherwise company’s overall production of tyres should have reached 1.7-1.8 million tyres in the current fiscal year.

He added that the company maintained direct and indirect employment of 1,800 despite tractor industry crisis. Now farm machinery making industry is on a recovery path after cut in GST rate to five from 16 per cent.

The company, he said, exported tyres worth Rs105 million in the last seven months of the current fiscal year to Syria, Afghanistan and Yemen mainly. The company’s total tyres exports stood at Rs126.5 million during 2010-2011 to the same countries.

“Efforts are underway to capture new global markets and talks are underway with buyers of many countries for cars, light trucks and tractors tyres, he added.

The company has also introduced a new tyre, named Chief for CNG rickshaws after successful road tests. This new tyre saves up to 20 per cent of gas as against currently competing tyres due to its special customised design and rolling resistance, he said, adding that despite CNG
crisis, the CNG rickshaw production will carry on.

Pak-Suzuki Motor Company had also discontinued booking of Mehran, Alto and Bolan (CNG variants) from middle of February and the
company used to produce 80 per cent CNG fitted vehicles in total production.

Shahid did not see any negative impact on tyre industry and said tyres supply orders from Pak Suzuki had been going at normal pace.
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Offline Poker Face

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Re: GTYR - General Tyres and Rubber Co.
« Reply #2 on: March 08, 2012, 11:26:29 PM »
2 din mein 2 locks lag chuke hain is ko
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Offline bilalmoti

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Re: GTYR - General Tyres and Rubber Co.
« Reply #3 on: October 14, 2012, 11:53:01 AM »
Has anyone received dividends of general tyre yet.

Offline bilalmoti

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Re: GTYR - General Tyres and Rubber Co.
« Reply #4 on: December 05, 2012, 09:22:36 PM »
Is ka time kareeb aagaya hai. Good tyre sales and low rubber prices will make earnings irresistible this quarter. Lao General Tyre 35/share by end of Jan-2013. ab date dekh kar mujse baat karna.

Offline bilalmoti

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Re: GTYR - General Tyres and Rubber Co.
« Reply #5 on: December 10, 2012, 11:04:10 PM »
Aur aaj tha pehla lock. Ab bolo call ka kamal.

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Re: GTYR - General Tyres and Rubber Co.
« Reply #6 on: December 10, 2012, 11:50:15 PM »
moti bhai aap ki bohat si calls accurate hi hoti hen which is commendable.  Lekin pata nahi kion engro men aap se agree kerny ka dil nahi chahta.  Besides engro, moti is great

Offline aqadir92

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Re: GTYR - General Tyres and Rubber Co.
« Reply #7 on: December 11, 2012, 04:48:30 PM »
tomorrow will be cap inshallah!!!!!!!!!!!! :dance

Offline aqadir92

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Re: GTYR - General Tyres and Rubber Co.
« Reply #8 on: December 26, 2012, 10:28:39 PM »
bilal bhai wats going on in this shares ????????? :thanks:

Offline mra901

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #9 on: January 05, 2013, 03:23:39 PM »
General Tyres & Rubber Company (Gentipak) is one of the leading producers and suppliers of quality tyres in Pakistan. The company is a public listed concern with majority of its shares held by Bibojee Services Ltd, Pak Kuwait Investment Company (Pvt) Ltd and National Investment Trust.

The company derives its operational technology from CONTINENTAL AG, Germany's top most tyre manufacturer, under a long-term technical service agreement. CONTINENTAL AG is also one of the shareholders of Gentipak. Gentipak's manufacturing plant is spread over a wide area of 25 acre in the suburbs of Karachi. The company started its commercial operations with an initial annual capacity of 120,000 tyres. However, over the years, the company has gone an extra mile to enhance its production capacity which now clocks in at two million tyres per annum.

The company produces wide range of tyres which falls under five broad categories: passenger car tyres, light truck tyres, truck and bus tyres, tractor front and rear tyres and rickshaw tyres. Besides, the company has also launched new featured products such as Eurostar, Euroglide and Euro Kompact.

The major domestic customers of Gentipak includes Toyota, Honda, Pak Suzuki Motor Company, Hino Pak, Ghandhara Industries, Ghandhara Nissan, Al-Ghazi Tractors, Millat Tractors, to name a few. Apart from meeting local demand, Gentipak also exports its products mainly to the Middle East countries. The company is also exploring other markets for export. The company's widespread network includes its plant, its head office in Karachi, three regional offices and a complex of over 100 dealers spread across the country. With its diverse network, Gentipak provides livelihood to over 1,800 people.

Performance Brief, FY12: In FY12, company's top line grew by four percent YoY, to tally Rs 7.8 billion which is so far the highest net revenue achieved by the company. The sales growth comes on the heels of three percent uptick in the sales volume. During the period under review, company sold 1.59 million tyres as against 1.55 million sold in FY11.

The year didn't prove to be all heart for the company whereby its production and sales activities came to a halt due to uncertainty on the issue of sales tax on the tractors for the first half of the year. Moreover, due to unabated electricity and gas loadshedding, the company was forced to shut down its operations for one day in a week. Consequently, there was an increase in the scrap besides the under absorption of overheads which led to high per unit cost. Due to high cost of production, company's gross margin slipped to 12.79 percent in FY12 as against 13.35 percent during the same period last year.

Above and beyond the setbacks discussed above, the company incurred enormous admin, distribution and marketing cost to introduce new designs. Moreover, the company had to dispel some fallacies prevailing in the market about company's products. All these factors took its toll on the operating profit which saw a YoY dive of 12 percent. To add insult to the injury, the financial cost surged by 20 percent due to additional borrowings undertaken by the company in the first two quarters of FY12 as its inventory was stuck-up on account of negligible sales in the tractor tyres category.

The company witnessed another bad break by incurring a loss of Rs 0.18 million from its investment in the associated company. The company couldn't militate against so many downbeat forces and thus ended up making a YoY decline of 22 percent its bottom line.

Performance Trail (FY09-FY11): By and large, company's top line and bottom line illustrate to pursue an upward trajectory over the years. A meticulous review of the company's performance over the stipulated period (FY09-FY11) gives a feeler that FY09 passed as one of the harsh periods in the company's history. Although the top line witnessed a YoY rise of 16 percent, however the volumetric analysis reveals that company could sold 1.3 million tyres during the period, which is down 18 percent from FY08.

This volumetric plunge is backed by 35 percent YoY decline in the sales to OEMs due to reduced demand of Cars/LCVs during the period. Company's cost of production also remained edgy on account of low capacity utilisation due to abridged demand. Besides, peak in the international crude oil prices also took its toll. Company also had to borrow excessively amid high interest rate backdrop due to inventory being tied up. These adverse factors culminated into a loss of Rs 109 million in FY09.

In FY10, company's performance rebounded to a great extent. Sales geared up by 14 percent YoY. Rise in the sales volume particularly emanated from the growth in the automobile sales during the period. In absolute terms, sales volume gushed by 19 percent to tally Rs 6.35 billion.

Although cost of sales increased by 12 percent due to increase in production rollout, but due to commendable capacity utilisation, the company was able to achieve economies of scale, mustering low cost per unit. During FY10, finance cost also took a 14 percent dive owing to normality in interest and rupee parity value which became helpful in controlling the aggregate financial cost. Taking all operational aspects into contemplation, the company concluded FY10 garnering an EPS of Rs 3.65 as against a loss of Rs 1.84 in FY09.

FY11 was marked by unprecedented downpour in the country followed by an imposition of 17 percent sales tax on the farm tractors which filched the demand of tractor tyres. Despite the off-putting circumstances, the company managed to post a top line growth of 18 percent partly due to rise in sales volume and also due to upward revision in prices. However, high cost of production resulted in the drop in company's margin.

In consequence of the aforementioned factors, the pre-tax profit of the company jumped down to Rs 395 million, symbolising a three percent decline.

Liquidity: Albeit, the company's current ratio touts a satisfactory position over the years. However, if we compare current ratio with quick ratio, there is a huge disparity ie the current assets drop to almost half if we deduct the inventory. This is symptomatic of the poor liquidity position of the company. In each year, the company holds more than normal amount of inventory due to dwindling demand situation prevailing in the market. This puts company in hot water and calls for immediate corrective actions as the company is highly leveraged with D/E ratio surpassing two in all the years.

Future Prospects: With the resolution of the issue of Sales Tax on tractors in the second half of the period under review, the company received considerable orders from tractor OEMs and similar trend is expected to continue in the future too.

Over the years, the company also suffered from decline in sales from auto manufacturers on account of unparalleled influx of imported used cars which marred the local industry thereby hurting the demand for auto parts including tyres. However, the government decision to reduce the age limit of imported cars proved to be a silver lining in the cloud.

With the above factors substantiating a dazzling future for the company, the trend of dumping of tyres and the hazard of under invoicing is still raging, thus blighting the industry performance. Reportedly, the smuggled tyre constitutes two-third of the market as compared with locally-made tyre that is standing at one-third share. This is not only impairing the industry but also putting a huge dent on the exchequer by way of taxes and duties that cause evasions of hundreds of millions of rupees every year.

Thus, now the ball is in the government's court. Any encouraging policy from the government's end will decide the future of the industry which at the moment portrays a murky picture.

Offline SBM

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #10 on: January 05, 2013, 08:11:14 PM »
They make absolutely shit tyres.  uuu
I hate waking up.

Offline umar

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #11 on: January 05, 2013, 08:23:56 PM »
They make absolutely shit tyres.

True. the first thing many people do after getting a new car is getting these tyres changed.
On a long enough time line, the survival rate for everyone drops to zero

Offline Hypnotized

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #12 on: February 06, 2013, 11:44:39 AM »
Should one hold GTYR? What is the short term target?

Offline YMF

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #14 on: February 09, 2013, 09:21:45 PM »
http://kseinvesting.blogspot.com/2013/02/give-wheels-to-your-portfolio.html

Nice share thanks, but you can't be seriously expecting a ban on all tyre import to actually materialize
Gtyr only makes a few sizes, and is total shit at it.
I hate waking up.

Offline YMF

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #15 on: February 09, 2013, 09:49:52 PM »
Even with a partial ban, replacement sales should greatly improve... plus they'll have a lot more pricing power... another boost to earnings should come from their agreement of a million motorcycle tyres with honda and yamaha... they can produce 2 million and plan to do it soon...
Tractor tyres have a higher margin and tractor sales have greatly improved with the green tractor scheme in punjab... There product has more of a perception issue and should be more widely used once consumers don't have a choice..

Offline omer8080

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #16 on: February 23, 2013, 07:22:43 AM »
GTR invests Rs 500 million in motorcycle tyre production

KARACHI: General Tyre and Rubber (GTR) while showing confidence in Pakistan’s market has invested Rs 500 million in motorcycle tyre production and plant enhancement, which will also create job opportunities in the period of economic slow down.

Chief Executive GTR Shahid Hussain announced this investment on the launching ceremony of motorcycle tyres on Friday.

He said recently GTR launched Compressed Natural Gas rickshaw tyres which have become popular with the drivers.

We are sure our first class quality 6 ply motorcycle tyres will meet the expectations of the motorcycle users. We have phased this project in two parts. The first phase will help us get into the big motorcycle replacement market and in the next phase we will approach selected top assembly plants to be one of their reliable suppliers, he added.

GTR has two versions of the tyres, one is the standard version and the other is the exotic version. ‘This exotic version is solely aimed at the youngsters who will go for its stylish tread patterns and quality. We have ensured grip, style and fuel economy is built into each tyre as our survey revealed that grip was the most important factor motorcyclists’ care about.

Our tyres have low rolling resistance which means more kilometers per litre, provided of course other parameters have been taken care of, he added.

Chairman GTR, Lt Gen (retd) Ali Kuli Khan Khattak said “Had this company not existed, the government of Pakistan would have had to spend more than $200 million annually on the import of equivalent number of tyres produced by GTR alone”. The importers on the other hand would have taken advantage of the situation and would have wreaked further havoc on our country’s fragile economy.

He said tyre manufacturing was a very expensive and tedious process and lot of funds were required to continually expand and due to very unfair competition it became extremely hard for us to expand and at the same time make only a marginal profit of 2 percent to 2.5 percent.

Our country is passing through a critical phase, as due to deteriorating law and order situation some industrial assets are being pulled out and shifted to other countries. We on the contrary decided to break this trend and have invested a good amount of money in putting up an ultra modern motorcycle tyre and tube manufacturing plant, he added.

The representative of Continental AG Dr W Flamm said Continental AG has a long-term association with GTR and it would continue to support GTR. He said Continental is happy that GTR has entered into this field of motorcycle tyre manufacturing.

http://www.dailytimes.com.pk/default.asp?page=2013\02\23\story_23-2-2013_pg5_3

Offline Ayubdon

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #17 on: March 09, 2013, 12:30:38 AM »
Kiya kisi ne iska 2QFY13 ka result dekha hai. I think 3Q bhi bahut strong ho ga aur yeh company karachi ki motor cycle tyre market ko jald capture kar leh gi. All motor cycle plants are located in punjab so it makes it more cost competitive to manufacture the tyre close to production source. My source tells me it will be 50 by end of june along with 3.5 rupees dividend. kisi ka kuch khayal hai. Aur main idhar naya hoon.

Offline Ayubdon

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Re: GTYR -- General Tyres and Rubber Co.
« Reply #18 on: March 12, 2013, 09:47:46 PM »
Aaj meri company main baat hui thi. They have got Atlas honda contract to supply all honda motorcycles. motor cycle plant has started selling tyres. Koi mujhe batai ga is ka impact kitna hoga. motor cycle tyres ka contribution kitna hoga? 

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