Synthetic & Rayon: PAKISTAN SYNTHETICS LIMITED - Nine Months Ended March 31 2004
This is a public limited company incorporated in the province of Sindh. It was listed at the Karachi Stock Exchange in 1990. During the last one year the price of its share appreciated from Rs 14.60 to Rs 24.70 per share.
On 19th July 2004, the closing market price of its share was quoted at Rs 16.20 per share carrying 62% premium over the par value of Rs 10.
The improved market price of a share may get stimulus from rising stock market index, improved financial strength of the company and continued innovation and growth of its sector. But the sustainability in the rise in market value of share comes only through its better dividend payout profile.
In this case, Pakistan Synthetics dividend payout profile is getting weaker as in 2002 dividend payout was at 20% and in 2003 at 7.5%. It appears from its 9 months performance that the financial year 2003-04 may not see dividend.
During the 9 months from July 2003 to March 2004, (9M 2003-04) the company could only break-even with wafer thin earnings per share of paisas 3 only.
Furthermore, in third quarter the cost of raw material increased and at the same time Polyester Staple Fibre (PSF) prices also came under pressure adversely affecting the profitability. Therefore Chief Executive of Pakistan Synthetics Limited Umer Haji Karim concluded.
"In view of the prevailing volatile conditions in the fibre industry, the management is not hopeful for improved results in the last quarter of the current year."
However, it is also reported that the plant performance during the third quarter (Q3 2003-04) was satisfactory.
The company provided 6,864 tons of polyester staple fibre and polyester chips as compared to the production 6,966 tons during the corresponding quarter last year (Q3 2002-03).
The company's manufacturing facilities are located in Balochistan province at Hub Industrial Estate. During the period under review, the company booked relatively large amount of Rs 114.2 millions on account of capital work in progress out of which Rs 105.96 millions in plant and machinery.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2004 2003
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Share Capital-Paid-up: 560.00 560.00
Reserves & Surplus: 414.39 413.06
Shareholders Equity: 974.39 973.06
Staff Retirement Benefit: 25.64 23.57
Deferred Taxation: 33.75 65.98
Current Liabilities: 359.61 329.80
Tangible Fixed Assets: 571.14 554.02
L.T Loans & Advances: 0.92 0.54
L.T Deposits: 0.35 0.50
Current Assets: 820.98 837.35
Total Assets: 1,393.39 1,392.41
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Profit & Loss A/c For the
Nine Months Ended March 31 2004 2003
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Net Sales: 1,383.87 1,319.22
Gross Profit: 33.31 118.62
Operating Profit: 5.55 97.56
Other Income: 1.74 6.13
Financial (Charges): (3.80) (3.05)
Profit Before Taxation: 1.47 92.69
Profit After Taxation: 1.33 46.70
Earnings Per Share (Rs): 0.03 0.83
Share Price (Rs) on 19-07-04: 16.20 -
Price/Earning Ratio: 540.00 -
Book Value of Share (Rs): 17.40 17.38
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 2.28 2.54
Gross Profit Margin (%): 2.41 8.99
Net Profit Margin (%): 0.10 3.53
R.O.A (%): 0.10 3.35
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COMPANY INFORMATION: Chairman: Ebrahim Haji Karim; Chief Executive: Umer Haji Karim; Chief Financial Officer/Company Secretary: M. Saleem Aziz; Registered Office: 3rd Floor, Karachi Dock Labour Board Building 58-West Wharf Road Karachi-7400; Factory: Hub Industrial Trading Estate District-Lasbella Balochistan; Web Address: N.A.
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