Cement: ESSA CEMENT INDUSTRIES LIMITED - Half Year Ended December 31, 2003

Essa Cement Industries Ltd, is a public limited company incorporated in the province of Sindh. Its registered office is situated at FL-2/1, Block-6 Gulshan-e-Iqbal Karachi. Its cement plant is located at Deh Kalo Kohar, Nooriabad Industrial Area Dadu District which is bordering district of Karachi.
The company was listed at Karachi Stock Exchange in 1988. At present Essa Cement shares are trading at the price of Rs 21 per share which is more than two times of the par value. During the last one year, the market value of the share shot up to Rs 24 per share from Rs 7.75 per share.
The bull run at the stock exchange has been an important factor in the rising trend of the share value.
Even then the 210% rise and that too from much below its par value is a convincing indicator of the revival of interest of investors in the company's share.
The company produced 135,500 tonnes of cement and sold 136,265 tonnes of cement. During HY 2003-04 this indicates that during the half year under review, the company sold almost all the production and this also shows sign of improvement in demand of cement. During the period, the price of cement remained stable.
The company registered sales at Rs 292.43 million as against Rs 294.23 million. But gross profit margin substantially improved by 5.24% percentage points to 8.76% from 3.52% in the SPLY year.
This stimulated the rise in gross profit significantly despite almost identical turn over in the same period last year.
Financial charges substantially reduced. Pre-tax profit at Rs 9.10 million replaced the pre-tax loss booked in the SPLY.
The directors emphasised "this trend is expected to continue into the future which should result in better profitability for the current year."

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Performance Statistics                (Million Rupees)

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Balance Sheet                            ----As At----

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December                  31 June 30 2003         2003

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Share Capital-Paid-up:             380.93       380.93

Reserves:                          193.40       185.77

Shareholders Equity:               574.33       566.70

L.T. Debts:                        594.07       612.08

Deferred Liabilities:               20.96        20.15

Current Liabilities:               529.80       530.21

Fixed Asset-Tangible:            1,459.56     1,491.05

L.T. Deposits:                       4.14         4.14

Current Assets:                    255.46       233.95

Total Assets:                    1,719.16     1,729.14

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Profit & Loss A/c For the

 Half Year Ended Dec 31              2003         2002

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Sales-Net:                         292.43       294.23

Gross Profit:                       25.63        10.37

Other Income:                        0.32         0.11

Financial (Charges):               (10.62)     (16.41)

Profit (Loss) Before Taxation:       9.10      (12.24)

Profit/(Loss) After Taxation:        7.63      (13.72)

Earning/(Loss) Per Share (Rs):       0.20       (0.36)

Share Price (Rs) Dated 26-3-2004:   21.00            -

Price/Earning Ratio:                 1.05            -

Book Value of Share (Rs):           15.07        14.87

Debt/Equity Ratio:                  51:49        52:48

Current Ratio:                       0.48         0.44

Gross Profit Margin (%):             8.76         3.52

Net Profit Margin (%):               2.61       (4.66)

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