Automobile Assembler: AL-GHAZI TRACTORS LIMITED - First Quarter Ended March 31 2004

Al Ghazi Tractors Ltd (AGTL) was privatised in 1991. Located at Dera Ghazi Khan the AGTL plant manufactures Fiat Tractors in collaboration with Fiat New Holland. The company claims to have the distinction of achieving the highest local content in Pakistan's automobile industry, by producing 83% of the parts locally. At the time of Privatisation, AGTL was taken over by Al-Futtaim a famous conglomerate of Dubai.
The company achieved Karachi Stock Exchange Top Companies Award consecutively for six years since 1994 to 1999.
It also received Corporate Excellence Awards of Management Association of Pakistan consecutively for 3 years since 1995 to 1997.
During Q1 2004, AGTL delivered 3818 tractors to customers. It generated sales at Rs 1351.78 million during Q1 2004 as against Q1 2003 sales at Rs 1058.07 million registering 27.76% increase.
Gross margin slightly improved and Gross Profit went up by 30% to Rs 350.11 million as compared to Rs 269.28 million posted in the preceding year's corresponding period. Pre-tax profit shot up by 24.7% to Rs 318.38 million as against Rs 255.22 million booked for the same period last year (SPLY).
The company was listed at the stock exchange in 1985. On 12th October 2004, the closing price of AGTL share was quoted at Rs 163.50 per share which is more than 16 times of its par value. During last month in September 2004, 35,400 shares of the company changed hands and in this month the price of the share ranged between Rs 146 and Rs 167.10 per share. During the last one year its price had crossed Rs 200 per share as its highest price was quoted at Rs 209. It has excellent track record of profit distribution as in 2002 the dividend pay out rate was 200%. The dividend further improved to 300%.
The track business has shown remarkable growth in the country. This industry with its high local content was affected by the universal steel crisis.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                 March 31  December 31

                                     2004         2003

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Share Capital-Paid-up:             195.16       195.16

Reserve & Profit:                1,848.70     1,651.31

Shareholders Equity:             2,043.86     1,846.47

Deferred Liability-Staff

 Benefits:                          18.20        18.20

Current Liabilities:             1,953.61     1,178.09

Tangible Fixed Assets:             224.62       211.31

L T Loans:                           1.11         0.92

LT Deposits:                         0.40         0.40

Deferred Taxation:                  20.89        20.89

Current Assets:                  3,768.65     2,809.24

Total Assets:                    4,015.67     3,042.76

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Profit & Loss A/c For the

 First Quarter Ended        March 31 2004         2003

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Sales:                           1,351.78     1,058.07

Gross Profit:                      350.11       269.28

Financial (Charges):                (3.76)      (2.33)

Operating Profit:                  316.27       241.45

Other Income:                       25.87        32.76

Profit Before Taxation:            318.38       255.22

Profit After Taxation:             197.39       158.23

Earning Per Share (Rs):              5.06         4.05

Share Price (Rs) 12-10-04:         163.50            -

Price/Earning Ratio:                12.09            -

Book Value of Share (Rs):          104.72        94.61

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                       1.93         2.38

Gross Profit Margin (%):            25.90        25.45

Net Profit Margin (%):              14.60        14.95

R.O.A (%):                           4.91         5.20

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