Ghandhara Industries Limited (GHNI) conducted its corporate briefing session yesterday to discuss the key outcomes of 1QFY21. To recall, the company posted PAT of 144Mn (EPS: 3.37), compared to PAT of 13.7Mn (EPS: 0.32) in the same quarter last year, respectively.
Key Takeaways
The Ghandhara group has footprint in automobile, textile, tyre and rubber, insurance, and construction businesses.
GHNI is directly involved in the buses and trucks market with its flagship joint venture ISUZU offering up to 32 models in its line-up. The trucks account for up to 90% of the GHNI sales while buses account for less than 10%.
It also manufactures a pickup truck i.e the ISUZU Dmax in 6 different variants which competes with the Toyota Hilux in the LCV segment.
The company provides body fabrication plant which offers one stop solution to commercial customers.
The 3S dealerships are in all major cities of the country to facilitate customers.
The buses and trucks customer base is equally divided between the government/army and the commercial/private sector i.e 50%:50%
Although the buses & trucks sector has contracted significantly in the past year by 46% according to PAMA. The ISUZU buses & trucks have gradually increased their presence in the market which is evident from the FY20 market share of 47%, up from 24% in FY16. Major loser are Hino buses and trucks which have shown inverse relation to Isuzu numbers.
The Isuzu Dmax pickup has also gained traction in the market selling as much as 656 units in FY20, up from 400 units in previous year. This has enabled the company to increase its market share against the Hilux in the pickup segment to 15%, up from 6% in previous year. The top selling variant is the top of the line variant i.e. VCross
The management stated that there are no immediate plans to introduce a competitor in the SUV market against the Toyota Fortuner in the PKR 8-9Mn range.
Moreover, the company is focusing on optimizing its supply chain, working capital management and efficient utilization of resources to gain maximum output.
BMA Capital Management Ltd.