During the year the company registered sales at Rs 583.16 million showing 19.4% growth over preceding year's. But gross profit sharply declined by 17.5% to Rs 67.42 million from the preceding year's Rs 81.75 million due to a higher increase in the material cost.
However, the downward trend in mark up rates, the financial costs for the year reduced from Rs 31.92 million to Rs 18.09 million, which as a percentage of sales came down from 6.53% to 3.10%.
Profit after tax decreased to Rs 2.51 million from Rs 4.42 million in the preceding year.
The company has by passed dividend payout and so was the case in the preceding year but prior to that for three consecutive years it had declared dividends.
Its share's closing rate is Rs 9.50, almost touching the par value. During the last 52 weeks, the bull run in the stock market appreciated its price Rs 13.50 per share.
ICC Textiles Limited was incorporated in the province of Punjab on May 25, 1989 as a public limited company under the Companies Ordinance 1984.
The shares of the company are listed on Karachi and Lahore Stock Exchanges. The company is primarily engaged in the manufacture and sale of grey fabrics.
ICC Textiles Limited, belongs to a leading and well established business group of Pakistan, engaged in manufacturing heavy electrical, mechanical and civil construction, engineering and indenting fields.
The textile project was setup in the vicinity of Lahore in 1990 as a diversification strategy, and to exploit the growing export potential from Pakistan.
The project is equipped to produce high quality of grey cloth according to international standards.
The product range includes Twills, Drills, Poplins, Percales, Cords, Dobby Designs and Sheetings of different construction and widths in 100% cotton and polyester/cotton blends.
The project has been in operation for the last 14 years and the company has succeeded in establishing good reputation in the fabric markets of Far East, Europe, and North America.
It has been exporting grey fabric to various countries including Japan, Korea, Hong Kong, Taiwan, UK, Germany, Switzerland, Spain, Ukraine, Belgium, Canada and USA.
The manufacturing facilities include, 100 looms, of Sulzey (Switzerland) make, warping machine Benninger Zell (Switzerland) sizing machine Benninger Zell (Switzerland) shearing machine Vollenwoider (Switzerland) air-conditioning (Switzerland) and looms data central: Benninger & Hubscher (Switzerland).
The plant's annual production capacity has been rated at 12.5 million running meters. During the year ended September 30, 2003, the year under review, (FY 2002-03) the company's annual output was recorded at 10.1 million running meters as against 9.2 million running meters produced in the preceding year FY 2001-02 output increased by 14.1% and utilized capacity improved to 81% from 74% in the preceding year.
Even though the efficiency of the plant has been estimated as rated production capacity. But it is difficult to determine preciously the production capacity in textile weaving mills since it fluctuated widely depending on various factors such as speed, width and construction of cloth woven etc.
The company has embarked on ambitious expansion plan. Brand new sizing and warping machines were scheduled to be installed by January 2004.
Negotiations were underway in January 2004 for finalizing the purchase of 72 high speed air jet looms with Toyota and Tsudakoma of Japan and Picanol of Belgium.
A medium term 5-year loan from ABN Amro Bank for an amount of Rs 70 million was finalized.
During the year under review the company posted sales at Rs 583.16 million (FY 2001-02: Rs 488.55 million registering 19.4% growth).
Export sales comprised 75.4 of sales. Export sales was diversified and the distribution in terms of dollar volume was - Europe 44%, Far East 36% and North America 20%.
Country wise the highest export sales was consigned to Belgium, 35%. After that Hong Kong 26.6% and USA 18.1%.
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Performance Statistics (Million Rupees)
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30 Sept 2003 2002
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Share Capital-Paid-up: 100.01 100.01
Unapp. Profit: 55.40 52.89
Shareholders Equity: 155.41 152.90
Loan From Directors & Members: 45.00 -
L.T. Debts: 19.15 19.15
Deferred Liabilities: 12.30 10.67
Current Liabilities: 258.89 253.35
Fixed Capital Expenditure: 184.88 189.90
L.T. Advances & Deposits & D/Cash: 2.30 4.03
Current Assets: 303.57 242.14
Total Assets: 490.75 436.07
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Sales, Profit & Pay Out
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Sales: 583.16 488.55
Gross Profit: 67.42 81.75
Operating Profit: 19.91 36.90
Other Income: 5.47 5.49
Financial (Charges): (18.09) (31.92)
(Depreciation): (19.42) (20.73)
Profit Before Taxation: 6.92 9.95
Profit After Taxation: 2.51 4.42
Earnings Per Share (Rs): 0.25 0.44
Share Price (Rs) Dated 17.02.2004: 9.50 -
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Financial Ratios
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Price/Earning Ratio: 38.0 -
Book Value Per Share: 15.54 15.29
Price/Book Value Ratio: 0.61 -
Debt/Equity Ratio: 9:91 11:89
Current Ratio: 1.17 0.96
Asset Turn Over Ratio: 1.18 1.12
Days Receivables: 31 23
Days Inventory: 80 103
Gross Profit Margin (%): 11.56 16.73
Net Profit Margin (%): 0.43 0.90
R.O.A. (%): 0.51 1.01
R.O.C.E. (%): 1.08 2.20
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Plant Capacity & Production
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A) Cloth (Running Meters in Millions)
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Rated Capacity: 12.5 12.5
Actual Production: 10.1 9.2
Capacity Utilization (%): 80.8 73.6
B) No of Looms Installed/Worked: 100 100
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COMPANY INFORMATION: Chairman: A Rehman; Chief Executive: Shafiq A Siddiqi; Director & Company Secretary: Usman Haq; Chief Financial Officer: Javed Rashid; Registered Office: 242-A, Anand Road Upper Mall, Lahore; Factory: 32-Km, Lahore-Multan Road Distt Lahore.
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