Service Industries Limited (SRVI) - May 2023

Service Industries Limited (SRVI) – May 2023

Research Team

Table of Contents

Corporate Briefing Notes

Service Industries Limited (SRVI) held its corporate briefing session to discuss the financial results for CY22 and its future roadmap.

Key Highlights

● Net sales of the company grew by 30% YoY to PKR43bn during CY22 compared to PKR33bn in SPLY. Main Segments of revenue are Tyre & Tube (66%), Footwear (26%), Service Genuine Parts (7%) and Technical Rubber Products (1%). Whereas, sales mix of the company accounted at PKR38bn local and PKR5b export in CY22.
● The company has leading market share in motorcycle Tyre and Tube along with largest exporter of Tyres and Tubes from Pakistan. Moreover, the company has 3rd largest market share in Motorcycle spare parts.


● Revenue in this segment clocked in at PKR28bn during CY22. The company has almost 49% market share in Pakistan OEMs market.
● Being the largest exporter of tyres and tubes, the company exports amounted to PKR 3.5bn (USD17mn) with reach over 30 countries across Europe, Asia, Africa, South America, and North America. Notably, SIL’s exports of tyres and tubes account for 53% of Pakistan’s total exports in this category, excluding TBR tyres.
● Moreover, during CY22 the company successfully installed State of the art mixing plant that increase mixing capacity by 72tons per day.


● Footwear Segment revenue recorded at PKR12bn that came from Exports, Local – institutional & Wholesale and Retail.
● Export sales of footwear amounted to PKR2bn in the said period. The company is continuously expand its exports destinations across various regions, including Europe, Asia, Australia, Russia, and the USA.
● The Company’s retail segment achieved phenomenal results in CY22 as sales revenue marked PKR5bn during the period. In CY22, the company opened 61 more retail outlets, taking total number to 152 by end of Dec’22. However, the number of stores as of May 2023 stand at 184.


● Service Genuine Parts segment posted a revenue of PKR3bn in the year 2022.
● The company has started its own manufacturing of motorcycle chains from July 2022 and sprockets from November 2022.The annual capacity of the project stands at 3 million for chains and 2.4 million for sprockets, respectively.
● The management expects the sale target of PKR2bn in CY23 from manufacturing of chains and sprockets. Margins are also expected to remain high due to in-house manufacturing in comparison to trading business.

Future Outlook

● Going-forward, current macro-economic situations followed by high inflation, rising interest rates, PKR depreciation and political instability are negatively impacting the industry in various aspects. The company’s management is attentively monitoring the latest developments along with potential opportunities in the market and also managing all known risks that may pose threat to company’s profitability

Important Disclosures


This report has been prepared by Chase Securities Pakistan (Private) Limited and is provided for information purposes only. Under no circumstances, this is to be used or considered as an offer to sell or solicitation or any offer to buy. While reasonable care has been taken to ensure that the information contained in this report is not untrue or misleading at the time of its publication, Chase Securities makes no representation as to its accuracy or completeness and it should not be relied upon as such. From time to time, Chase Securities and/or any of its officers or directors may, as permitted by applicable laws, have a position, or otherwise be interested in any transaction, in any securities directly or indirectly subject of this report Chase Securities as a firm may have business relationships, including investment banking relationships with the companies referred to in this report This report is provided only for the information of professional advisers who are expected to make their own investment decisions without undue reliance on this report and Chase Securities accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents At the same time, it should be noted that investments in capital markets are also subject to market risks This report may not be reproduced, distributed or published by any recipient for any purpose.

Analyst certification:

The research analyst for this report certifies that 1.all of the views expressed in this report accurately reflect her personal views about the subject and 2.no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed by the research analyst in this report.

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