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 (2019-25)
STPL’s topline which was on the rise until 2021 fell unabatedly in the following years. Except 2019 and 2021, STPL’s bottomline deteriorated in all other years under consideration with net loss registered in 2020, 2024 and 2025. The margins depicted a mixed pattern over the period.
After a considerable recovery in 2019, the margins hit the rock bottom in 2020 followed by a rebound 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.
In 2019, STPL’s topline posted a healthy 28.81 percent year-on-year growth to clock in at Rs.3408.74 million. However, the growth came on the back of upward revisions in prices while the quantity sold plunged by 2.5 percent during the year.
The cost of sales grew by 23.92 percent year-on-year in 2019 due to increase in the price of raw materials as the government imposed protection measures to support the local flat steel industry which not only affected the supply chain of the company but also increased the cost.
Yet gross profit improved by 102 percent in 2019 with GP margin inching up from 6.26 percent in 2018 to 9.82 percent in 2019. Distribution cost inched down by 4.32 percent year-on-year in 2019 due to lesser volumetric off-take which called for lesser transportation charges as well as export expenses.
Administrative expense posted a moderate 12.44 percent growth in 2019 which signifies the market induced increase in salaries and wages as well as higher legal and professional and statutory expenses. Other income posted a tremendous year-on-year growth of 332.83 percent in 2019 which came on the back of a massive rise in profit of bank deposits due to upward revision in discount rate during the year.
Moreover, exchange gain on export sales also provided growth impetus to other income. Operating profit boasted a stunning year-on-year growth of 231.93 percent in 2019 with OP margin clocking in at 8.97 percent from OP margin of 3.48 percent in 2018. Finance cost gave a major blow to the bottomline as it enlarged by 33.22 percent during 2019 due to increase in discount rate and short-term borrowings.
The company was able to push its bottomline out of loss zone in 2019 and posted net profit of Rs.86.69 million as against a net loss of Rs. 67.73 million posted in 2018. NP margin stood at 2.55 percent in 2019. EPS for 2019 was recorded at Rs.0.39 versus loss per share of Rs.0.65 in 2018.
2020 was a harsh year for STPL as it was for the majority of other industries locally and globally due to the outbreak of COVID-19. The global pandemic not only disrupted the business activity due to supply chain impediments but also resulted in record low level demand.
While STPL declared itself as an essential business and got exemption from non-operation during the lockdown period, its topline could only muster 4.33 percent year-on-year growth in 2020 to clock in at Rs.3556.45 million. This came on the back of an exponential growth in export sales, however, overall, STPL’s sales volume was 5 percent lower than the last year due to tamed demand owing to economic slowdown.
The cost of sales posted an increase of 9.81 percent year-on-year in 2020 due to a rise in the price of Tin Mill Black Plate during the year. As the demand was already very low, the company couldn’t pass on the impact of cost increase to its customers. This resulted in 45.92 percent year-on-year slump in gross profit in 2020. GP margin clocked in at 5 percent in 2020.
While administrative sales posted a moderate year-on-year growth of 6.7 percent in 2020, distribution cost jumped up by 116.98 percent due to high freight charges as export sales greatly improved during the year. Other expense posted a drop of 59.38 percent year-on-year due to lower provisioning done for WPPF.
Other income also posted a plunge of 14.27 percent due to lesser profit on bank deposits. Operating profit crashed by 61.93 percent year-on-year in 2019 with OP margin of 3.27 percent. Discount rate was high for the first three quarters of FY20 and the company also availed SBP refinance facility for the payment of salaries and wages which built up its long-term loan portfolio.
However, finance cost shrank by 49.41 percent year-on-year in 2020 due to healthy exchange gain recognized on its borrowings during the year owing to Pak Rupee depreciation. The relief provided by the finance cost drop couldn’t help the bottomline as it posted net loss of Rs.23.14 million in 2020 with loss per share of Rs.0.10.
After a rough year, STPL heaved a sigh of relief as 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.
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 (see the graph “production & capacity utilization). 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.
Recent Performance (2025)
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 and stability of international commodity prices and 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.
Future Outlook
Macroeconomic indicators are showing signs of stability of-late resulting in improved demand. However, the company might not be able to take advantage of the demand recovery in the face of stiff competition from unlawful sources. This issue requires serious deliberation from the concerned authorities to protect the local legitimate industry. 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.