WAVES
Half Yearly Report
June 2023
Waves Corporation Limited
Waves Corporation Limited
CORPORATION INFORMATION
BOARD OF DIRECTORS | ||
1. | Mr. Haroon Ahmad Khan | Chief Executive Officer |
2. | Mr. Moazzam Ahmad Khan | Non-Executive Director |
3. | Mrs. Nighat Haroon Khan | Non-Executive Director |
4. | Mr. Hamza Ahmad Khan | Executive Director |
5. | Mr. Tajammal Hussain Bokharee | Independent Director |
6. | Mr. Khalid Azeem | Non-Executive Director |
7. | Mr. Muhammad Zafar Hussain | Chairman/Independent Director |
AUDIT COMMITTEE | ||
1. | Mr. Tajammal Hussain Bokharee | Chairman/Independent Director |
2. | Mr. Moazzam Ahmad Khan | Member/Non-Executive Director |
3. | Mrs. Nighat Haroon Khan | Member/Non-Executive Director |
4. | Mr. Ahmad Bilal Zulfiqar | Secretary |
HR & REMUNERATION COMMTTEE | ||
1. | Mr. Muhammad Zafar Hussain | Chairman/Independent Director |
2. | Mr. Khalid Azeem | Member/Non-Executive Director |
3. | Mr. Moazzam Ahmad Khan | Member/Non-Executive Director |
4. | Mr. Haroon Ahmad Khan | Member/ Executive Director |
5. | Mr. Ahmad Bilal Zulfiqar | Secretary |
CHIEF FINANCIAL OFFICER | COMPANY SECRETARY | |
Mr. Arslan Shahid Butt | Mr. Ahmad Bilal Zulfiqar | |
HEAD OF INTERNAL AUDITOR | LEGAL ADVISOR | |
Mr. Usman Khalid | Law Wings Advocates & Solicitors | |
EXTERNAL AUDITORS | SHARE REGISTRAR | |
RSM Avais Hyder Liaquat Nauman | Corplink (Private) Limited | |
Chartered Accountants, Islamabad | ||
RESISTERED OFFICE/PLANT | COMPANY REGISTRATION NO. | |
Factory: 9-KM Multan Road, Lahore | CUIN 0001286 | |
PH. No. 042-35415421-5,35421502-4 | Email:cs@waves.net.pk | |
UAN: 042-111-31-32-33 | Website:www.waves.net.pk |
Waves Corporation Limited
BANKERS
Al Baraka Bank (Pakistan) Limited | National Bank of Pakistan |
Askari Bank Limited | Pak Brunei Investment Company Limited |
Bank Al Falah Limited | Pak Libya Holding Company Limited |
Dubai Islamic Bank Pakistan Limited | Pak Oman Investment Company Limited |
Faysal Bank Limited | Samba Bank Limited |
First Prudential Modaraba | Silkbank Limited |
Habib Bank Limited | Sindh Bank Limited |
Habib Metropolitan Bank Limited | The Bank of Khyber |
Industrial & Commercial Bank of China | The Bank of Punjab |
Contact Information:
Registered Office: | 042-35415421-5,042-35421502-4 |
Email: | cs@waves.net.pk |
Web Site: | www.waves.net.pk |
Waves Corporation Limited
Directors Report to Shareholders
Overview
On behalf of the Board of Directors of Waves Corporation Limited, previously Waves Singer Pakistan Limited (WAVES or the Company), we submit the Directors' Review Report on the condensed interim consolidated and standalone financial statements (reviewed) for the half year period ending on 30 June 2023.
The economic activity in major advanced economies is still challenging, mainly due to the continuation of monetary tightening measures. Inflation has fallen in some economies due to lower energy prices, but food and services prices continue to rise, contributing to persistent high inflation. Monetary tightening measures are still in place. Similarly, the emerging market economies are also facing challenges from the rough global financial conditions such as higher debt servicing costs, capital outflows, and reduced credit availability from foreign lenders. Moreover, rising geopolitical tensions and concerns about supply chain security have prompted several countries to implement trade and investment restrictions. Increasingly restrictive trade policies risk curtailing the gains from global trade and harming the development prospects of low-income countries.
The wholly owned subsidiary Waves Marketplace Limited (WAVES Plus) continued facing challenges due to limited supply, whereas the business model of Waves Builders and Developers (Private) Limited for its real estate development was improved to include sizeable commercial portion, that increases its top and bottom line. However, it is moving on a slower pace owing to tough economic and financial conditions. The home appliances business undertaken by the Company's subsidiary Waves Home Appliances Limited (WHALE) faced challenges as the whole appliances industry was under pressure due to restriction on import of raw materials. However, WHALE was able to position itself to substantially rely on locally manufactured material vis-à-vis its competitors thus mitigating its production risks. The completion of state-of-the-artpurpose-built owned factory by WHALE is continuing but at a compact pace in line with current economic environment.
The financial highlights are presented as hereunder for consolidated financial statements, wherein financial results of standalone financial statements are also provided in this report:
Consolidated Operating Results
Sales (net)
Gross profit
Profit from operations
Profit before taxation
Profit after taxation
Earnings per share - Basic & Diluted (Rupees)
HY-2023 | HY-2022 |
Rs. in '000 | Rs. in '000 |
2,944,539 | 7,142,220 |
760,949 | 1,478,704 |
228,731 | 652,636 |
208,919 | 537,568 |
169,011 | 438,671 |
0.60 | 1.56 |
The Board has considered and is providing operating results and business performance for consolidated financial results as it better reflects the performance of the Company as a holding entity. The individual standalone operating results of the Company (after demerger of the home appliances business to WHALE) are also given in this Report.
Waves Corporation Limited
The Company's Consolidated Revenues for the half year period stands at PKR 2,944 million with a net profit of PKR 169 million, compared to the previous period's revenues of PKR 7,142 million and net profit of PKR 438 million. This variance is primarily due to the challenging economic and financial environment, where supply was constrained and demand was restricted due to the prevailing recessionary situation. However, it may be noted that the gross margins have substantially improved.
Standalone Results of the Company
The standalone results of the Company are given hereunder (after demerger of home appliances business to WHALE):
HY-2023 | HY-2022 | |
Rs. in '000 | Rs. in '000 | |
Other income | 106,081 | 107,576 |
Profit before taxation | 74,397 | 84,737 |
Profit after taxation | 74,397 | 66,095 |
Earnings per share - Basic & Diluted (Rupees) | 0.26 | 0.23 |
Based on the financial results in view of the tough current economic and political conditions the Board of Directors do not recommend any pay-out to the shareholders of the Company.
The standalone financial statements of the Company in which investments in subsidiaries are accounted for on the basis of direct equity interest rather than on the basis of reported results and net assets of the investees. The Consolidated financial statements of the Company are prepared and presented separately. The Company has following subsidiary/wholly-owned subsidiaries, whose further information can be reviewed in the notes to the consolidated financial statements of the Company:
Waves Home Appliances Limited (WHALE) | Subsidiary |
Waves Marketplace Limited (WML) | Wholly Owned Subsidiary |
Waves Builders & Developers (Private) Limited (WBDL) | Wholly Owned Subsidiary |
The Sales (net) of WHALE were PKR 2,473 million as compared to PKR 5,576 million, whereas net profit was PKR 72 million as compared to PKR 290 million in the previous period. The Sales (net) of WML were PKR 620 million as compared to PKR 1,674 million, whereas net profit was PKR 23 million as compared to PKR 83 million in the previous period. WBDL is still in the development phase, whereas all real estate project development activities are carried out in the holding Company. Hence it is carried on going concern basis. The half yearly financial results of WHALE can be reviewed at the Company's website www.waves.net.pk.
In view of recent policy changes in allowing import of materials/components by the home appliances industry, the L/C opening process by the commercial banks is expected to go slow. Consequently, dependence on foreign sources of materials is continuing to be challenging, therefore, WHALE has been making arrangements for achieving major import substitution in order to ensure uninterrupted continuity of operations. In these circumstances market sizes of domestic appliances may not reach the expected levels, therefore deferral of capital expenditure is necessitated. Accordingly, WHALE has substantially switched to local source of materials, which will ensure less dependence on imports and inhouse development of certain imported components through WHALE's vendors. There is a huge potential of deep freezers and vizi-coolers corporate sales not only to Coca Cola but for the whole frozen food and beverages industry. Insha Allah, continuity of operations shall be fully focused during ongoing difficult times.
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Waves Singer Pakistan Ltd. published this content on 22 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 August 2023 08:01:02 UTC.