This giant corporate entity has emerged from the merger of various manufacturing companies of Ibrahim Group in October 2000. Hence it is ready to withstand the tax barrier free WTO regime.
In the first test, it did withstand the adverse effects of Sars and depressed PSF profit margins as domestic manufacturers faced full impact of 5% reduction in net protection available to PSF industry as announced in the Federal Budget 2002-03.
Furthermore there was tough competition amongst the domestic PSF manufacturers to maximise their sales in the over-capacity situation.
During the year under review, the company posted sales of Rs 11.475 billion (net of sales tax) as against sales of Rs 6.313 billion (net of sales tax) during the previous year registering 81.8% growth which is remarkable achievement.
Particularly, in the backdrop of adverse effect of Sars in the international market and over capacity in the domestic market.
This is the highest sales figure in the history of the company. Export sales increased by 350% to Rs 124.21 million from Rs 27.62 million in the preceding year.
Pre-tax profit at Rs 627.62 million increased by 6.6%. But after tax profit at Rs 481.06 million was down by 9.6% mainly due to provision for deferred taxation of Rs 89 million to meet the statutory requirement.
Ibrahim Fibres Limited was incorporated in 1986 as a public limited company. It is listed on all three stock exchanges of the country.
At present the share in the company is trading at the market price of Rs 34.50 per share which is more than 3 times of the par value. During the last 52 weeks the price of the share shot-up from Rs 16.60 per share to Rs 37.05 per share.
The principal business of the company is to manufacture and sale of Polyester Staple Fibre (PSF) and yarn. Its manufacturing units are located at Faisalabad-Sheikhupura Road, in the province of Punjab.
The management of Ibrahim Fibres Ltd is effectively applying Information Technology (IT). It considers rapid communications as a key area for quality management as well as service and using the best of IT resources for quick, real time and effective flow of information between internal dependants and locations as well as its customers and suppliers.
To further strengthen the integrated suite of business applications, an agreement has been signed to obtain a software license from ORACLE Corporation for implementation of ORACLE e-business suite.
In this regard an agreement has also been signed with A.F. Ferguson & Company, Chartered Accountants, for Business Process Re-engineering and Software Implementation.
Various initiatives of the management's in this areas will facilitate the company to work in complete SCM and CRM environment and to develop digital dashboard to focus on Business Intelligence Technologies for integrating data to provide key performance indicators and operating alerts for management decision.
Human Resource Development is another key area on which it is giving continued focus. During the year under review 90 employees attended various management courses at Pakistan Institute of Management (PIM), Lahore University of Management Sciences (LUMS), Pakistan Institute of Quality Control (PIQC) etc.
In October 01, 2000 the Ibrahim Group manufacturing companies were merged in Ibrahim Fibres Limited to maximise benefits of synergies and consolidate its strength of technology and human resource.
The manufacturing activities of Ibrahim Fibres Limited today comprises Polyester Fibre Division and spun yarn division supported by in-house Power Generation Project.
The Polyester Fibre Division produces a wide range of Polyester Staple Fibre (PSF) in different varieties, finishes, cut, lengths and denier. Besides these, it also produces dyed and hallow fibres in siliconised and non-siliconised varieties.
The Spun Yarn Division specialises in the production of finer counts of blended as well as pure synthetic yarns.
During the year under review, the company achieved the targeted production by operating its PSF/Polyester Chips Plant at 73% of installed capacity thus producing 151.6 thousand tons as compared to 95.6 thousand tons produced during the previous year.
The textile spinning plants continued to exceed the capacity and produced 46.5 thousand tons (converted into 20/s) of yarns of different counts against production of 44.3 thousand tons (converted into 20/s) during the preceding year.
The company continued to concentrate in the production of pure synthetic yarns (pure polyester yarns and pure viscose yarns) and blended yarns (polyester viscose yarns and polyester cotton yarn).
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Performance Statistics (Million Rupees)
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30 September 2003 2002
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Share Capital-Paid-up: 3,105.07 3,105.07
Reserves: 2,118.12 2,099.53
Shareholders Equity: 5,223.19 5,204.60
L.T Debts: 1,909.90 2,803.07
Deferred Taxation: 475.39 386.34
Staff Retirement Gratuity: 141.75 127.89
Current Liabilities: 3,580.25 2,865.81
Fixed Capital Expenditure: 8,259.70 8,714.31
L.T Deposits: 5.21 9.53
Current Assets: 3,065.57 2,663.87
Total Assets: 11,330.48 11,387.71
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Sales, Profit & Pay Out
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Sales: 11,474.65 6,312.59
Gross Profit: 1,189.94 936.87
Other Income: 32.61 25.18
Operating Profit: 966.43 740.37
Financial (Charges): (302.77) (118.11)
(Depreciation): (894.19) (382.65)
Net Profit Before Taxation: 627.62 588.69
Net Profit After Taxation: 481.06 532.29
Dividend Cash @ Rs 1.50
(2002: Rs 1.50)/Share: (465.76) (465.76)
Earnings Per Share (Rs): 1.55 1.71
Share Price (Rs) Dated 03.03.2004: 34.50 -
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Financial Ratios
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Price/Earning Ratio: 22.26 -
Book Value Per Share: 16.82 16.76
Price/Book Value Ratio: 2.05 -
Debt/Equity Ratio: 27:73 35:65
Current Ratio: 0.86 0.92
Asset Turn Over Ratio: 1.01 0.55
Days Receivables: 6 21
Days Inventory: 66 106
Gross Profit Margin (%): 10.37 14.84
Net Profit Margin (%): 4.19 8.43
R.O.A (%): 4.25 4.67
R.O.C.E (%): 6.20 6.24
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Plant Capacity & Production (000' Tons)
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A) Polyester Staple Fibre/Polyester Chips
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Annual Production Capacity: 208.60 208.60
Actual Production: 151.64 95.65
Utilised Capacity (%): 72.69 45.81
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A) Yarn (Spindles Installed
136,608 (2002:136,608) converted into 20/s count)
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Annual Production Capacity: 41.70 41.70
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Actual Production (Spindles Worked
135,549 (2000:135,458): 46.51 44.31
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Utilised Capacity (%): 111.53 106.26
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COMPANY INFORMATION: Chairman: Sheikh Mukhtar Ahmed; Chief Executive Officer: Mohammad Naeem Mukhtar; Director: Mohammad Waseem Mukhtar; Company Secretary: Anwarul Haque FCA; Registered Office: Ibrahim Centre, 1-A, Ahmed Block New Garden Town, Lahore 54600; Head Office: Ibrahim Centre, Club Road, Faisalabad; Projects Location: 38-40 KM Faisalabad-Sheikhupura Road, Faisalabad.
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