GENERAL

TYRES AND
RUBBER
COMPANY
FINANCIAL ANALYSIS
 • RAO SAIM
• KABEER AHMED
THE TEAM • SARFARAZ SHAHBUDDIN
• SYED ALI RAZA
• SAUD AHMED
INTRODUCTION
 ESTABLISHED IN: 1963
 LOCATION: LANDHI, KARACHI
 LAND AREA: 25 ACRE
 MARKET SEGMENTS:
 THE ORIGINAL EQUIPMENT MANUFACTURERS –
VEHICLE ASSEMBLERS
 THE REPLACEMENT OR THE AFTER MARKET
 GOVERNMENT DEPARTMENTS/INSTITUTIONS
 THE EXPORT MARKET
MAJOR STAKEHOLDERS:
GENERAL TIRE INTERNATIONAL CORPORATION
(GTIC)
USA
M/S BIBOJEE SERVICES LTD.
CONTINENTAL AG, GERMANY
PAK KUWAIT INVESTMENT COMPANY
 AUTHORIZED DEALERS/DISTRIBUTORS: 150+
NATIONWIDE
INTRODUCTION (CONTD.)

• SCRIP GTYR
• FOUNDED IN 1963
• OWNER
• BIBOJEE GROUP
• PAK KUWAIT INVESTMENTS
• NIT
• GENERAL PUBLIC
• TECHNOLOGICAL AFFILIATION: CONTINENTAL GERMANY
 Directors 1,463,813 1.20%
Mr. Raza Kuli Khan Khattak 490,452 0.40%
LT. GEN. Ali Kuli Khan Khattak 486,525 0.40%
Dr. Shaheen Kuli Khan Khattak 243,265 0.20%
Mrs. Shahnaz Sajjad Ahmed 243,265 0.20%
Mr. Hussain Kuli Khan 204 0.00%
Mr. Atif Anwar 102 0.00%

Associated Companies 70,461,607 57.79%

Bibojee Services 33,881,772 27.79%
Pakistan Kuwait Investment 36,579,835 30.00%

Public Sector Companies 1,087,395 0.89%

Fiannacial Institutions 3,448,235 2.83%

Mutual Funds 6,656,498 5.46%

AKD Opportunity 108,348 0.09%
NIT Equity Opportunity 417,408 0.34%
NBP Mahana Amdani 30,000 0.02%

OWNERS
NIT 5,818,618 4.77%
NBP Income Opportunity 8,500 0.01%
NIT Islamic Equity 228,624 0.19%
NBP Savings 30,500 0.03%
Faysal MTS 14,500 0.01%

General Public 33,561,879 27.52%

Local 30,494,751 25.01%
Foreign 3,067,128 2.52%

Foreign Companies 698,113 0.57%

Others 4,555,810 3.74%

Total 121,933,350 100.00%

VISION
TO BE THE LEADER IN TYRE
TECHNOLOGY BY BUILDING
THE COMPANY’S IMAGE
THROUGH QUALITY
IMPROVEMENT, COMPETITIVE
PRICES, CUSTOMERS’
SATISFACTION AND MEETING
SOCIAL OBLIGATIONS.
 
 MISSION STATEMENT
 TO ENDEAVOR TO BE THE MARKET LEADER BY
ENHANCING MARKET SHARE, CONSISTENTLY
IMPROVING EFFICIENCY AND THE QUALITY OF
OUR PRODUCTS.

 TO OFFER QUALITY PRODUCTS AT COMPETITIVE

PRICES TO OUR CUSTOMERS.

 TO IMPROVE PERFORMANCE IN ALL OPERATING

AREAS, SO THAT PROFITABILITY INCREASES
THEREBY ENSURING GROWTH FOR THE
COMPANY AND INCREASING RETURN TO THE
STAKEHOLDERS.

 TO CREATE A CONDUCIVE WORKING

ENVIRONMENT LEADING TO ENHANCED
PRODUCTIVITY, JOB SATISFACTION AND
PERSONAL DEVELOPMENT OF OUR EMPLOYEES.

 TO ENHANCE PRODUCTIVITY AND CONTINUE

DISCHARGING ITS OBLIGATION TO
ENVIRONMENT BY CONTRIBUTING TO SOCIAL
WELFARE AND ADOPTING ENVIRONMENTALLY
FRIENDLY PRACTICES AND PROCESSES TO
SERVE THE SOCIETY.
 LIQUIDITY RATIOS
CURRENT RATIO QUICK RATIO
2 1

1.5 0.8
0.6
1
0.4
0.5 0.2
0 0
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

The Current Ratio Analysis conducted for past five year from 2015 to 2020 shows that the ratio has also seen a
decline of 42.03%, as the ratio in 2015 was 1.57 and 0.91 in 2020.
The Quick Ratio Analysis conducted for over five year term has a similar trend as is being reflected in the previous
ratios and show decrease of 48.31% in the term of five years from 2015 to 2020, with quick ratio at 0.89 in 2015
and 0.46 in 2020
The main reason in declining of both the ratios is the increase of current liabilities in last five years by
244% as compare to increase of current assets by 89% and quick assets by 100% approximately
 EFFICIENCY RATIOS
INVENTORY TURNOVER IN TIMES INVENTORY TURNOVER IN DAYS
7 150
6
5 100
4
3
50
2
1
0 0
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

The Inventory Turnover ratio in Days was 56.01 in 2015 to 102.97 in 2018 and 129.54 days in 2019
to 137.74 days in 2020.
The Inventory Turnover ratio in Times can be translated as 6.52 times in 2015 to 2.65 times in 2020

The main reason in increase in turnover inventory in days and decline in times is decrease in sales and
poor inventory management due to bad forecasting.
 EFFICIENCY RATIOS
RECEIVABLE TURNOVER IN TIMES RECEIVABLE TURNOVER IN DAYS
14.00 60.00
12.00 50.00
10.00 40.00
8.00 30.00
6.00
20.00
4.00
2.00 10.00
0.00 0.00
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

The receivable turnover ratio in the number of days and times has seen a steady rise from 2015 to
2020. In 2015, RTO in times was 8.47 which increases until 2018 to 12.36 and again declined to 7.34 by
2020. Similarly, RTO in days as 32.74 which decreases until 2018 to 31.81 and again increased to 48.06
by 2020

The main reason in fluctuations are due to prioritizing the relations with their client and lenient credit
policy. Moreover, as sales declining so it makes weaker negotiating hand in the business.
 EFFICIENCY RATIOS
CASH CONVERSION CYCLE TOTAL ASSET TURNOVER
120.00 2.00
100.00 1.50
80.00
60.00 1.00
40.00
0.50
20.00
0.00 0.00
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

The Cash Conversion time has grown 39.89 days in 2015 to 101.50 days in 2020, which again reflects that the
amount of time required to convert the investments into cash has increased by 154.44% within the span of five years
and 5% in comparison from the last year.
The Asset Turnover Ratio has shown a gradual decline from 1.77 in 2015 to 1.10 in 2018 to 0.74 in 2020 showing a
decrease in the efficiency for asset deployment.
The main reason in decline of the total asset turnover ration is increase in total assets in last five years by almost
121% but in the same period sales declined by 7.23%. Thus, it indicates poor deployment of assets in generating
sales.
 PROFITABILITY RATIOS
GROSS PROFIT MARGIN NET PROFIT MARGIN
30.00% 15.00%
25.00%
10.00%
20.00%
15.00% 5.00%
10.00%
0.00%
5.00% 2015 2016 2017 2018 2019 2020
0.00% -5.00%
2015 2016 2017 2018 2019 2020

The Gross Profit Margin for year 2015 was 20.42%, which rose up to 24.50% in 2016, 21.32% in 2017, and from
there onwards has seen a consistent decline with 17.70% in 2018, 15.16% in 2019 and 11.93% in 2020

The Net Profit margin stood at 7.72% in 2015, and like the previous indicators increased to 10.89% in 2016, and
from there onwards show a consistent decline to 9.14% in 2017, 6.07% in 2018, 1.17% in 2019 and (3.78%) in
2020
The reason for decline is the increase of Cost of Sales in comparison with actual sales. As sales decreases by 7.23%
in five years, however Cost of Sales increases by 2.53% approximately.
 PROFITABILITY RATIOS
EBITDA RETURN ON EQUITY
25.00% 40.00%
20.00% 30.00%
20.00%
15.00%
10.00%
10.00% 0.00%
5.00% 2015
-10.00% 2016 2017 2018 2019 2020
0.00% -20.00%
2015 2016 2017 2018 2019 2020

EBITDA for General Tyres and Rubber Company stood at 16.07% for the year 2015 and rose to 19.08% in 2017,
followed by a general declining trend to 16.17% in 2017, to 13.21% in 2018 and 11.85% and 10.19% in 2019 and
2020 respectively
The ROE-AT was 31.08% in 2015, followed by an upward trend to 35.00% in 2016, , and then a falling trend in the
following years, as it was 23.22% in 2017, 20.04% in 2018, 3.68% in 2019 and (11.24%) in 2020

The reason for decline of ROE is the declining net income for last four years. However equity remained uniform
around that period. Moreover, Non-Cash expenses also increases by 178% in last five years.
 SOLVENCY RATIOS
DEBT TO EQUITY RATIO SOLVENCY RATIO
3.50 35.00%
3.00 30.00%
2.50 25.00%
2.00 20.00%
1.50 15.00%
1.00 10.00%
0.50 5.00%
0.00 0.00%
2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

The Debt to Equity ratio shows a increasing trend from 2015 to 2020. It shows increase of almost
138% in last five years as D/E ratio was 1.27 times in 2015 and last year it was reported 3.02 times .

The solvency ratio was declined drastically in last five years. As it declines from 30.20% in 2015 to
just 1.58% in 2020.
The reason for decline in the solvency ratio is the increase in liabilities in last five years, which grown by more
than 198% approx. while growth of equity remains around 25% in last five years.
WEIGHTED AVERAGE COST OF CAPITAL ANALYSIS (WACC)
WACC
GTYR 2020 2019 2018 2017 2016
Common
Shares 3,469,334 14,516,112 2,347,713 2,347,713 1,347,713
Preffered • THE PURPOSE OF WACC IS TO DETERMINE THE COST OF
Shares - - - - - EACH PART OF THE COMPANY’S CAPITAL
STRUCTURE BASED ON THE PROPORTION OF EQUITY, DEBT,
Debt 8,916,974 9,134,270 7,114,899 4,806,500 3,862,987
AND PREFERRED STOCK
Total 12,386,308 23,650,382 9,462,612 7,154,213 5,210,700 • WACC HAS BEEN GRADUALLY INCREASING SINCE 2016
            WHICH IS ALARMING FOR GYTR
Rd 10% 6% 4% 3% 4%
Rs 8.35% 8.35% 8.35% 8.35% 8.35% • GYTR IS USING MORE DEBT AND EQUITY FINANCING TO
Tax Rate 29% 29% 30% 31% 32% OPERATE
1-T 71% 71% 70% 69% 68%
• FUTURE CASH FLOWS WILL BE DISCOUNTED AT HIGHER
Wd 72% 39% 75% 67% 74%
RATE
Ws 28% 61% 25% 33% 26%
• AN INVESTOR MAY WANTS TO HAVE AN ADDITIONAL
WACC 9.19% 7.60% 4.79% 4.47% 4.77% RETURN TO NEUTRALIZE THE RISK
• GYTR HAS PAID BONUS STOCK FOR TWO YEARS IN 2018 AND
2019
BETA AND CAPITAL ASSET PRICING MODEL

• BETA IS A MEASURE OF THE VOLATILITY—OR SYSTEMATIC

RISK—OF A SECURITY OR PORTFOLIO COMPARED TO THE
MARKET
• GENERAL TYRE AND RUBBER COMPANY HAS A CONSISTENT
PATTERN AND THE RETURN ARE NOT EXACTLY LINKED
WITH THE PERFORMANCE OF THE MARKET
• THE OVERALL ANALYSIS OF THE SHARE VALUES SHOW
THAT FROM JAN 2018, THE SHARE PRICE WAS SOMEWHERE
AROUND PKR 100/- AND FROM THERE IT HAS TAKEN A DIVE
FOR THE WORST TO PKR 27/- IN MAY 2019 AND GRADUALLY
RECOVERING TO AROUND PKR 71/- BY NOV 2020
Beta 0.18    
Market Average 0.01% GTYR Average 0.01%
Weekly Weekly
Rm Yearly 0.63% RGTYR Yearly 10.43%
Rrf 7.90% Rs 8.35%
 WORKING CAPITAL MANAGEMENT
2020 2019 2018 2017 2016
Sales 8,793,341.00 10,486,282.00 11,785,457.00 9,645,367.00 9,479,045.00
Sales/Day 24,091.35 28,729.54 32,288.92 26,425.66 25,969.99

COGS 7,744,581.00 8,896,798.00 9,699,779.00 7,589,305.00 7,157,029.00

COGS/Day 21,218.03 24,374.79 26,574.74 20,792.62 19,608.30

Stores and Spares 629,508.00 659,566.00 596,494.00 489,293.00 496,552.00

Stocks 3,318,231.00 3,721,748.00 3,324,857.00 2,074,728.00 1,570,594.00
Inventory 3,947,739.00 4,381,314.00 3,921,351.00 2,564,021.00 2,067,146.00

Recievables 183,785.00 202,594.00 279,671.00 264,397.00 68,901.00

Payables 1,794,516.00 1,783,757.00 1,928,381.00 1,348,074.00 1,293,036.00

Inventory Conversion 186.06 179.75 147.56 123.31 105.42

Average Collection period 7.63 7.05 8.66 10.01 2.65
Payable Deferrel period 84.58 73.18 72.56 64.83 65.94

CCC 109.11 113.62 83.66 68.49 42.13

FCFF & FCFE
  2016 2017 2018 2019 2020 • FCFF IS A MEASUREMENT OF A COMPANY'S PROFITABILITY
FCFF (290,136) (737,276) (664,829) (1,263,777) 760,573 AFTER ALL EXPENSES AND REINVESTMENTS, IT
REPRESENTS THE AMOUNT OF CASH FLOW FROM
FCFE 212,077 (710,726) 172,577 10,648,126 (12,196,100) OPERATIONS AVAILABLE FOR DISTRIBUTION
• FREE CASH FLOW TO EQUITY IS A MEASURE OF HOW MUCH
CASH IS AVAILABLE TO THE EQUITY SHAREHOLDERS OF A
FCFF & FCFE COMPANY AFTER ALL EXPENSES, REINVESTMENT, AND
15,000,000 DEBT ARE PAID. FCFE IS A MEASURE OF EQUITY CAPITAL
USAGE
10,000,000 • FIRM FREE CASH FLOW HAS BEEN CONTINUOUSLY
NEGATIVE OVER THE FOUR YEARS
5,000,000 • FIRM IS NOT GENERATING ENOUGH CASH FROM OPERATING
ACTIVITIES WHILE CONTINUOUSLY INVESTING THEREFORE
ITS FCFF BECOMES NEGATIVE.
-
2016 2017 2018 2019 2020 • ALTHOUGH ITS FCFE IS POSITIVE FOR SOME YEARS
BECAUSE OF BORROWING BUT IN 2020 IT IS NEGATIVE
(5,000,000) AGAIN AFTER PAYING THE DEBT

(10,000,000)

(15,000,000)

FCFF FCFE
INDUSTRY COMPARISON AND
ANALYSIS
 PRICE AND EARNING RATIOS - COMPARISON

INDUSTRY AVERAGE GENERAL TYRE & RUBBER COMPANY

Price Price

             

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

Price Average 177.71 254.64 485.41 579.73 579.17 Price Average 48.57 95.81 204.22 275.41 162.6

Price High 266.26 373.19 757.24 801.91 737.00 Price High 64.05 186.35 306 345.51 186.32

Price Low 113.00 180.80 342.00 433.42 422.94 Price Low 29.88 33.42 149.73 179 141.01

Earning Ratios Earning Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

Earning Growth -47.09% 1225% -54.19% 47.60% -2.64%   Earning Growth -370.27% -82.83% -18.82% -14.62% 40.86%

Earning Per Share EPS -36.49 -22.00 10.43 57.77 35.74   Earning Per Share EPS -2.72 1.01 7.04 14.75 17.27  

Price To Earning Ratio P / E Average -86.75 3.21 123.83 12.02 14.52   Price To Earning Ratio P / E Average -17.83 95.07 29 18.68 9.41  

Price To Earning Ratio P / E High -108.24 3.43 208.55 17.49 17.91   Price To Earning Ratio P / E High -23.52 184.92 43.45 23.43 10.79  

Price To Earning Ratio P / E Low -61.44 3.26 78.81 8.26 11.17   Price To Earning Ratio P / E Low -10.97 33.16 21.26 12.14 8.16  
 EQUITY AND DIVIDEND RATIOS - COMPARISON

INDUSTRY AVERAGE GENERAL TYRE & RUBBER COMPANY

Equity Ratios Equity Ratios
                           
YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016
Book Value 312.72 315.27 343.13 336.21 288.32   Book Value 24.23 27.4 35.15 63.52 49.35  
Book Value Growth -2.50 -2.40 3.24 14.14 10.95   Book Value Growth -11.57 -22.05 -44.66 28.71 25.1  
Equity To Assets Ratio 64.49 66.46 68.66 66.78 67.49   Equity To Assets Ratio 24.89 26.78 33.42 44.13 43.3  
Price To Book Value Average 0.83 1.08 1.82 1.99 1.87   Price To Book Value Average 2 3.5 5.81 4.34 3.3  
Price To Book Value High 1.13 1.48 2.55 2.88 2.29   Price To Book Value High 2.64 6.8 8.71 5.44 3.78  
Price To Book Value Low 0.57 0.84 1.44 1.37 1.46   Price To Book Value Low 1.23 1.22 4.26 2.82 2.86  
Retention Ratio 0.00 26.12 65.41 75.02 64.84   Retention Ratio 0 100 14.8 -1.72 100  
Return On Assets -3.66 3.51 6.10 10.99 9.17   Return On Assets -2.8 0.98 6.7 10.25 15.15  
Return On Capital Employed -3.45 8.70 14.57 23.21 22.62   Return On Capital Employed 7.99 17.92 23.13 24.82 39.01  
Return On Equity -7.73 0.61 6.97 16.70 13.17   Return On Equity -11.24 3.68 20.04 23.22 35  
Dividend Ratios Dividend Ratios
                           
YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016
Dividend 0.50 5.00 6.25 10.00 9.38   Dividend 0.5 0 6 15 0  
Dividend Cover -0.52 1.05 0.73 5.17 3.70   Dividend Cover -5.45 0 1.17 0.98 0  
Dividend Growth -57.50 -26.67 20.84 5.36 25.00   Dividend Growth -25 -33.33 -60 25 33.33  
Dividend Yield Average 0.29 2.22 1.88 1.96 2.81   Dividend Yield Average 1.03 0 2.94 5.45 0  
Dividend Yield High 0.40 2.62 2.16 2.88 3.36   Dividend Yield High 1.67 0 4.01 8.38 0  
Dividend Yield Low 0.23 1.72 1.50 1.35 2.43   Dividend Yield Low 0.78 0 1.96 4.34 0  
Payout Ratio -48.33 23.88 34.59 24.98 35.16   Payout Ratio -18.36 0 85.2 101.72 0  
SALES, CASH FLOW & PROFITABILITY RATIOS
GENERAL TYRE & RUBBER
INDUSTRY AVERAGE COMPANY
Sales Ratios Sales Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

COGS Inc / Dec 386.73 -0.54 7.10 2.61 3.21   COGS Inc / Dec -12.95 -8.28 27.81 6.04 -5.24  

Price To Sales Ratio Average 0.76 0.57 0.99 1.04 0.80   Price To Sales Ratio Average 0.67 1.11 1.76 1.71 1.03  

Price To Sales Ratio High 0.98 0.77 1.33 1.54 0.96   Price To Sales Ratio High 0.89 2.17 2.64 2.14 1.17  

Price To Sales Ratio Low 0.53 0.46 0.81 0.70 0.64   Price To Sales Ratio Low 0.41 0.39 1.29 1.11 0.89  

Sales Growth -27.68 -3.10 1.67 3.88 3.35   Sales Growth -16.14 -11.02 22.19 1.75 -0.13  

Sales Per Share 626.81 735.65 897.87 929.13 858.69   Sales Per Share 72.12 86 115.99 161.37 158.59  

Cash Ratios Cash Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

Cash Flow Per Share -140.31 -193.60 -113.40 -120.03 -130.37   Cash Flow Per Share -30.9 -27.64 -16.25 -16.45 -8.43  

Cash Per Share 10.25 11.96 60.67 69.55 28.74   Cash Per Share 1.5 1.28 0.9 1.67 1.95  

Profitablility Ratios Profitablility Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

EBIT Margin -2.53 4.61 8.00 10.86 10.03   EBIT Margin 5% 8% 10.10% 14% 17%  

EBITDA Margin 0.00 6.13 9.33 12.18 11.32   EBITDA Margin 10% 12% 13% 16% 19%  

Gross Profit Margin 6.43 12.68 14.64 19.19 18.21   Gross Profit Margin 11.93% 15.16% 17.70% 21.32% 24.50%  

Net Profit Margin -3.60 1.58 4.35 8.05 6.01   Net Profit Margin (3.78%) 1% 6% 9% 11%  

Operating Profit Margin -2.53 4.61 8.00 10.86 10.03   Operating Profit Margin -2.38% 28.38% 48.03% 24.42% 29.20%  
LIQUIDITY & SOLVENCY RATIOS - COMPARISON
GENERAL TYRE & RUBBER
INDUSTRY AVERAGE COMPANY
Liquidity Ratios Liquidity Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

Asset Turnover 92.35 131.84 139.59 136.80 152.31   Asset Turnover 0.74 0.84 1.10 1.12 1.39  

Current Ratio 2.46 3.36 3.52 3.38 3.31   Current Ratio 0.91 0.97 1.22 1.54 1.47  

Effective Tax Rate 178.93 1.17 60.78 28.97 33.46   Effective Tax Rate -25.65 51.55 23.88 25.57 30.94  

Interest Cover 2.20 1282.68 1159.23 1134.67 654.91   Interest Cover 1.06 2.12 6.06 12.57 13.28  

Inventory Turnover 3.68 5.47 5.89 5.47 5.77   Inventory Turnover 2.65 2.82 3.54 4.65 6.04  

Quick Ratio 1.33 2.08 2.23 2.17 1.91   Quick Ratio 0.46 0.48 0.58 0.88 0.82  

Solvency Ratios Solvency Ratios

                           

YEAR 2020 2019 2018 2017 2016 YEAR 2020 2019 2018 2017 2016

Long Term Debt Inc / Dec 21.09 7.00 -5.66 19.41 0.73   Long Term Debt Inc / Dec -2.38 28.38 48.03 24.42 29.2  

Long Term Debt To Assets Ratio 1.42 0.07 0.25 0.36 0.60   Long Term Debt To Assets Ratio 0.13 0.13 0.18 0.19 0.21  

Long Term Debt To Equity 3.03 0.07 0.33 0.42 0.72   Long Term Debt To Equity 0.51 0.50 0.53 0.44 0.49  

Total Debt To Assets Ratio 0.36 0.34 0.31 0.33 0.33   Total Debt To Assets Ratio 0.75 0.73 0.67 0.56 0.57  

Total Debt To Equity 0.70 0.69 0.60 0.67 0.65   Total Debt To Equity 3.02 2.73 1.99 1.27 1.31  
FUTURE PREDICTIONS & MARKET ANALYSIS - I
• PAKISTAN RUBBER TYRE MARKET SIZE WAS VALUED AT $272.10 MILLION IN 2017,
AND IS PROJECTED TO REACH $1,592.90 MILLION BY 2025, REGISTERING A
COMPOUND ANNUAL GROWTH RATE (CAGR) OF 24.8% FROM 2018 TO 2025.
• THE RADIAL TYPE BY DESIGN SEGMENT WAS THE HIGHEST REVENUE CONTRIBUTOR
IN 2017, ACCOUNTING FOR $207.7 MILLION, AND IS ESTIMATED TO REACH $1,196.4
MILLION BY 2025, REGISTERING A CAGR OF 24.6%
• EXPONENTIAL INCREASE IN THE DEMAND FOR TYRES DUE TO THE RISE IN VEHICLE
PRODUCTION IN PAKISTAN
• PAKISTAN RUBBER TYRE MARKET IS DRIVEN DUE TO THE INTENSE COMPETITION
BETWEEN TYRE MANUFACTURERS TO PRODUCE SUSTAINABLE, DURABLE IN
QUALITY, AND ALSO DUE TO THE PRODUCTION OF LOW COST TYRES TO MEET THE
DEMAND FOR TYRE
• THE DEVELOPMENTS IN THE MARKET OF RETREADING TYRE IN WHICH WORN TYRES
ARE REPLACED BY TREAD ARE EXPECTED TO LIMIT THE GROWTH OF NEW TYRE
MARKET.
• IMPROVEMENT IN THE ECONOMY WOULD RESULT IN THE FAVORABLE CONDITIONS
FOR MANUFACTURING SECTOR AND ANTICIPATED RISE IN THE AUTOMOTIVE
SECTOR, THEREBY CREATING A DEMAND FOR RUBBER TYRE MARKET.
• ORIGINAL TYRES ARE INSTALLED BY VEHICLE MANUFACTURERS AT THE FACTORY,
WHICH IS RECOGNIZED AS A PRIMARY DIVISION OF THE TYRE MARKET, WHEREAS
THE REPLACEMENT AFTERMARKET IS ANOTHER DIVISION MARKET
FUTURE PREDICTIONS & MARKET ANALYSIS - II
• KEY PLAYERS IN THE RUBBER
TYRE MARKET: • COMPETITION AMONG TYRE
• GENERAL TYRE AND RUBBER CO. MANUFACTURERS
LTD. • SOUTH KOREA’S SECOND
• SERVIS TYRE LARGEST TYRE MANUFACTURER
• THE GOODYEAR TYRE & RUBBER KUMHO TYRE HAS SEALED A
COMPANY DEAL WITH A PAKISTANI
COMPANY—CENTURY
• BRIDGESTONE GROUP
ENGINEERING INDUSTRIES
• PIRELLI TYRE S.P.A
• TYRE MANUFACTURERS ARE
• MICHELIN ENGAGED IN PRODUCING
• GHAURI TYRE & TUBE LTD. SUSTAINABLE AND HIGH
DURABLE TYRES WITH A HIGH
• CONTINENTAL CORPORATION
LEVEL OF PERFORMANCE TO
• SUMITOMO RUBBER INDUSTRIES ATTRACT MORE VEHICLE
LTD. MANUFACTURERS
• YOKOHAMA RUBBER CO., LTD .
• FIVE STAR TYRES
 FUTURE PREDICTIONS & MARKET ANALYSIS - III

• RISING EXPECTATIONS OF CONSUMERS

• GROWTH IN AUTOMOBILE INDUSTRY
• GROWING COMPETITORS
• CHEAPER LOCAL VARIANTS
• INCREASING PENETRATION OF INTERNATIONAL
PLAYERS
• EXPECTED GROWTH IN MARKET
• CHANGING MARKET TRENDS
• VOLATILE PRICES OF RAW MATERIAL
• GDP, INFLATION, RUPEE DEVALUATION,
FUTURE PLAN OF ACTION FOR GTYR

• AGGRESSIVE MARKETING STRATEGY • REDUCING HIGH DEBT TO EQUITY

• PR AND MEDIA CAMPAIGN
RATIO

• REVIVAL OF REPUTATION IN THE • FOCUSING OF NEW AUTOMOBILE

MARKET ENTRANTS
• CONFIDENCE BUILDING MEASURE • REDUCING THE NEGATIVE CASH FLOW
ANALYSIS
• IMPROVING QUALITY
• RESTORING INVESTOR TRUST
• MASSIVE AUTOMATION OF THE
INDUSTRY • CPEC AND OBOR
• LOWERING OF OVERHEAD COSTS • SELLING OF SUBSIDIARIES & UN-
UTILIZED ASSETS
• BUILDING BRAND LOYALTY
• CLOSING DOWN LOSS MAKING
• ADOPTION OF NEW TECHNOLOGY INITIATIVES
• RECOVERING MARKET SHARE
 CONCLUSION

• CONSISTENT NEGATIVE CASHFLOW AND FALLING COST OF GOODS SOLD

• HIGH FINANCE COST
• DEBT TO EQUITY RATIO SHOW HIGH RISK
• RECOVERING ECONOMY
• POST COVID’ 19 ECONOMIC GROWTH AND BOOST IN AUTOMOBILE SALES
• LOSS AFTER TAX FOR THE YEAR 2019-2020 WAS PKR 332 MILLION AS
COMPARED TO PROFIT AFTER TAX OF PKR 123 MILLION REPORTED LAST
YEAR.
• SHORT TERM HOLDING IS NOT RECOMMENDED
• MONITORING OF FINANCIALS REQUIRED ON QUARTERLY BASIS
• IF FINANCIALS IMPROVE, LONG TERM HOLDINGS WOULD BE PROFITABLE
THANK YOU