Siddiqsons Tin Plate Limited (PSX: STPL) was incorporated in Pakistan as a public limited company in 1996.
The company is engaged in the manufacturing and sale of tin plates, cans and other steel products for the packaging of cooking oil, fruits, vegetables, sea food, lubricants etc.
Pattern of Shareholding
As of June 30, 2025, STPL has 229.279 million shares outstanding which are held by 5486 shareholders. Local general public has the highest stake of 41.033 percent in STPL followed by Directors, Sponsors, CEO & children and senior management holding 37.31 percent of its shares.
Associated companies which include Siddiqsons Limited and Siddiqsons Denim Mills limited hold 15.65 percent shares of STPL.
Foreign general public accounts for 4.28 percent shares of the company. The remaining shares are held by other categories of shareholders.
Performance Trail (2021-25)
STPL’s topline which was on the rise until 2021 fell unabatedly in the following years. Except 2021, STPL’s bottomline deteriorated in all other years under consideration with net loss registered in 2024 and 2025.
The margins depicted a mixed pattern over the period. The margins which hit the rock bottom in 2020 rebounded in 2021. In the subsequent three years, STPL’s margins eroded followed by a recovery in 2025. The detailed performance review of the period under consideration is given below.
After experiencing a rough 2020 where the company posted 5 percent thinner topline and a net loss, STPL heaved a sigh of relief as 2021. 2021 proved to be an exceptional year for the company. Its topline boasted the highest ever year-on-year growth of 64.43 percent to clock in at Rs.5847.85 million in 2021. This came on the back of 37 percent and 78 percent rise in local and export off-take respectively during the year. In 2021, the export sales reached 25 percent of the overall revenue of STPL up from 18 percent in 2020.
While cost of sales escalated by 49.45 percent year-on-year in 2021 due to high price of Tin Mill Black Plate, the company was able to pass on the impact of price increase and Pak Rupee depreciation to its customers which resulted in a 343.66 percent year-on-year growth in gross profit. GP margin also reached its highest mark of 13.74 percent in 2021. Administrative expense almost doubled during the year due to legal and regulatory fee paid on the increase of authorized capital.
Distribution cost also grew by 83.51 percent year-on-year in 2021 due to high freight charges which are directly proportional to high export sales. Other expense multiplied by a massive 1680.35 percent during 2021 as the company incurred exchange loss on the import of its raw materials due to depreciation of Pak Rupee coupled with high provisioning for WPPF on the back of high profits made during 2021.
Other income shrank by 78.85 percent during 2021 due to lower profit on bank deposit on account of low discount rate. Despite massive rise in operating and other expenses and a contraction in other income, operating profit grew by 352.35 percent during 2021 with OP margin of 9 percent. Finance cost grew by 39.28 percent during the year despite discount rate cuts due to exchange loss on borrowings.
STPL made a record net profit of Rs.322.16 million in 2021 with NP margin of 5.51 percent. EPS stood at Rs.1.41 in 2021. This was against the net loss of Rs.23.14 million and loss per share of Rs.0.10 recorded in 2020.
The bliss enjoyed by the STPL in 2021 didn’t last longer as 2022 proved to be full of challenges. Record high discount rate, Pak Rupee depreciation, import restrictions and global commodity super cycle not only lowered the demand but also put a pressure on the margins.
The topline plummeted by 19.24 percent year-on-year to clock in at Rs. 4722.75 million as sales volume dropped by 47 percent during 2021. While the company increased its prices by 54 percent year-on-year, it still couldn’t save its topline from shrinking. As the company operated on a curtailed capacity, cost of sales also dropped by 18.65 percent year-on-year in 2022.
Gross profit shrank by 22.92 percent year-on-year with a downtick in GP margin which clocked in at 13.11 percent in 2022. Distribution expense almost halved in 2022 due to lesser export expenses. Admin expenses also plunged by 51.31 percent in 2022 due to lesser legal and regulatory fee.
The company booked massive provision against doubtful advances which could’ve increased other expenses but lower provisioning for WPPF and lesser exchange loss counterbalanced it resulting in a 33.23 percent year-on-year drop in other expense in 2022.
Other income boasted 112.52 percent growth in 2022 as massive decline in the value of local currency provided tremendous exchange gain on export sales. Moreover, high discount rate also drove up the profit on bank deposits.
Despite lower expenses, operating profit slipped by 19 percent year-on-year in 2022 while OP margin remained intact at 9 percent. 35 percent year-on-year growth in finance cost and imposition of super tax resulted in a bottomline slide of 37.53 percent year-on-year to clock in at Rs.201.27 million in 2022 with NP margin of 4.26 percent. EPS for 2022 stood at Rs.0.88.
In 2023, STPL’s topline further eroded by 6.97 percent to clock in at Rs.4393.77 millio. This was due to 7 percent lower sales volume recorded during the year. While STPL increased its prices by 15 percent during the year, it couldn’t completely pass on the onus of cost hike which came on the back of extreme fluctuations in global commodity prices coupled with Pak Rupee depreciation.
Consequently, gross profit tumbled by 35.41 percent in 2023 with GP margin sliding down to 9.10 percent. Distribution expense leveled down by 33.61 percent in 2023 on account of considerably lower export expense and payroll expense incurred during the year.
Administrative expense multiplied by 14.81 percent in 2023 due to increased payroll expense in line with inflationary trend as well as increased provision for doubtful debt. Lower profit related provisioning, no provision against advances as well as no exchange loss culminated into 89.62 percent decline in other expense in 2023.
On the positive front, other income mounted by 135.11 percent in 2023 primarily due to hefty profit recognized on bank deposits and exchange gain recognized on foreign trade receivables.
Despite keeping a check on operating expense and a considerable improvement in other sources of income, operating profit slumped by 37.56 percent in 2023 with OP margin shrinking to 6.06 percent. STPL’s finance cost mounted by 27.85 percent in 2023 due to unprecedented level of discount rate. This translated into 98.47 percent year-on-year decline in STPL’s net profit which clocked in at Rs.3.08 million in 2023 with EPS of Rs.0.01 and NP margin of 0.07 percent.
In 2024, STPL’s net sales further deteriorated by 7.24 percent to clock in at Rs.4075.69 million. Besides adverse macroeconomic conditions which took its toll on the demand, unrestricted import of secondary tinplate at considerably lower rates destroyed the company’s ability to maintain its market share in the face of unprecedented level of inflation, discount rate, high cost of raw materials, elevated energy tariff and Pak Rupee depreciation.
The sales tax exemptions provided to FATA/PATA region was another downside risk for the company. The unusual use of Galvalume sheets (primarily used in construction industry) for food packaging also created demand distortion of STPL’s products.
Supply chain disruptions due to difficulty in opening L/Cs added to ado. Two major production halts during the year due to labor issues posed another challenge for the company. Capacity utilization fell to 6.96 percent in 2024 from 9 percent in 2023. The company recorded 27 percent decline in production volume.
Sales volume also fell by 7 percent in 2024. Cost of sales surged by 3.44 percent due to idle capacity which increased fixed cost per unit. This resulted in gross loss of Rs.55.47 million in 2024.
Lower sales volume resulted in 29.52 percent thinner distribution expense in 2024. Administrative expense fell by 18.19 percent in 2024 due to lower payroll expense as the company rationalized its workforce from 198 employees in 2023 to 132 in 2024. 1271.90 percent spike in other expense in 2024 was the result of provisioning done for WWF & advances against L/C fee and expenses, advance tax and other advances written off during the year as well as unrealized exchange loss on foreign trade receivables.
Other income dipped by 17 percent in 2024 mainly due to the fact that unlike last year, the company didn’t record unrealized gain on foreign trade receivables.
Other factors which contributed to desolate financial performance in 2024 were provision worth Rs.68.25 booked for ECL, provision worth Rs.820.968 million booked for contingency and impairment loss worth Rs.306.13 million recorded in 2024.
STPL posted a hefty operating loss of Rs.1401.11 million in 2024. Finance cost mounted by 177 percent in 2024 due to monetary tightening and increased borrowings. Net loss clocked in at Rs.2058.499 million in 2024. This translated into loss per share of Rs.8.98 in 2024.
The deterioration in net sales which started in 2022 continued in 2025 to the tune of 50.36 percent. This translated into net sales of Rs.2023.04 million in 2025. The challenges such as tax exemptions provided to FATA/PATA region, uninhibited import of secondary tinplate at lower rates and use of Galvalume sheets in food remained unresolved in 2025. STPL filed petitions against these issues but to no avail. Production volume fell by 32.95 percent to clock in at 5599 metric tons in 2025. This resulted in capacity utilization of 4.67 percent in 2025.
Decline in inflation, stability of international commodity prices and stronger Pak Rupee enabled the company to squeeze its cost by 56.40 percent in 2025. This resulted in gross profit of Rs.221.78 million in 2025 as against gross loss of Rs.55.47 million recorded in the previous year. GP margin was recorded at 10.96 percent in 2025.
Distribution and administrative expense fell by 18.85 percent and 18.97 percent respectively due to streamlined operations. Number of employees was further reduced to 109 in 2025. High-base effect due to one-off expenses recorded in the previous year resulted in 80.24 percent lower other expense in 2025 (refer to 2024 analysis for the details of one-time other expense).
Other income strengthened by 31.65 percent in 2025 due to gain recognized on the disposal of fixed assets and other miscellaneous income. No impairment loss and provision for contingency was booked during the year. Provision for ECL also fell by 96.85 percent in 2025.
All these factors translated into operating profit of Rs.153.16 million in 2025 as against operating loss of Rs.1401.11 million recorded in the previous year. OP margin clocked in at 7.57 percent in 2025. Finance cost shrank by 35.76 percent in 2025 due to monetary easing and settlement of outstanding borrowings. Net loss slid by 87.61 percent to clock in at Rs.255.117 million in 2025 with loss per share of Rs.1.11.
Recent Performance (9MFY26)
During the nine-month period of the ongoing fiscal year, STPL recorded a staggering 41.31 percent growth in its net sales which clocked in at Rs.2158.66 million. This was on the back of tremendous growth recorded in local sales.
Export sales worth Rs.83 million were also recognized during the period versus no export sales recorded in the comparable period of last year. This was due to improved availability of raw materials which enabled the company to make the most of the available demand and increase its production and sales volumes.
The recent imposition of anti-dumping duty on secondary tin-plate by National Tariff Commission (NTC) has greatly buttressed the demand of locally produced tin-plate. Gross profit improved by 23.43 percent in 9MFY26; however GP margin ticked down to 13.95 percent versus GP margin of 15.97 percent recorded in 9MFY25. This was due to increased competition from alternative packaging materials such as galvalume. Distribution expense hiked by 97 percent due to increased sales volume and venturing into export market.
Conversely, administrative expense ticked down by 13.65 percent in 9MFY26 despite enhancement in operations. This was due to operational efficiency attained after restructuring of operations done in 2025. Increased provisioning done for WWF and WPPF appears to be the cause of 310.96 percent higher other expense incurred during 9MFY26.
Other income deteriorated by 77.76 percent in 9MFY26, however, conveniently offset other expense, resulting in net other income of Rs.9.59 million, down 81.58 percent year-on-year. Thinner other income could be the result of lower mark-up income due to monetary easing and a massive drop in the company’s TDR investment.
STPL recorded 7.53 percent uptick in its operating profit in 9MFY26 with OP margin clocking in at 10.91 percent versus OP margin of 14.34 percent recorded in 9MFY25. Finance cost dwindled by 53 percent in 9MFY26 due to monetary easing while borrowings escalated.
The company was able to record net profit of Rs.33.026 million with EPS of Rs.0.14 in 9MFY26 versus net loss of Rs.174.25 million and loss per share of Rs.0.76 recorded in 9MFY25. NP margin clocked in at 1.53 percent in 9MFY26.
Future Outlook
Macroeconomic indicators demonstrated signs of stability of-late resulting in improved demand.
However, the company couldn’t take optimum advantage of the demand recovery in the face of stiff competition from unlawful sources. This issue has been greatly resolved by the imposition of anti-dumping duty of 40 percent and increase in customs duty from 1.56 percent to 17 percent by NTC. To make up for the lost sales in the home market, STPL is actively exploring export avenues in the GCC, Europe and the US.
The company has also reportedly resolved its labor issues and supply chain issues and is all set to tap new geographical markets to improve its financial performance.
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