Engineering: BOLAN CASTINGS LIMITED - Half Year Ended December 31, 2003

The company is primarily engaged in castings of tractors and automotive parts. It is a public limited company incorporated in the province of Balochistan. Its factory and registered office are located at Main RCD Highway, Hub Chowki, District Lasbella, Balochistan.
Its liaison office is located F-1 Hub River Road S.I.T.E Karachi (Sindh).
The company was listed on Karachi Stock Exchange in 1985. At present Bolan Castings Limited share is trading at the market value of Rs 68 per share which is close to 7 times of the par value of Rs 10.
During the last one year the share's price shot up by 71.1% to Rs 73.95 per share from Rs 43 per share.
During the half year ended December 31, 2003 (HY 2003-04), net sales of the company amounted to Rs 213.39 million which improved further to Rs 230.58 million after writing back of Rs 17.19 million on account of prior year's provision for estimated sales returns no longer required.
So this amount of Rs 230.58 million exhibited 51.14% growth over the sales amount of Rs 152.56 million posted in the corresponding period of last year. This is an impressive growth rate.
The gross profit of the half year under review was Rs 58.13 million as against Rs 30.06 million of the corresponding period last year, making an increase of Rs 28.07 million, ie 93%.
Gross Profit margin substantially improved to 27.24% from the GP margin of 19.70% computed for the preceding year's corresponding period. The directors foresee continued strong demand for Bolan Castings' product range.
However they also apprehend that the profitability is may be effected as a result of rapidly escalating raw material cost.
The pre-tax profit of the half year increased by 116.6% to Rs 48.36 million as against Rs 22.33 million in the same period last year.

======================================================

Performance Statistics                (Million Rupees)

======================================================

Balance Sheet                                  -As At-

------------------------------------------------------

                              December 31      June 30

                                     2003         2003

======================================================

Share Capital-Paid-up:              55.25        55.25

Reserves & Surplus:                196.50       164.86

Shareholders Equity:               251.75       220.11

Deferred Liability-Gratuity:         4.81         4.54

Current Liabilities:                63.33        79.03

Fixed Assets-Tangible:              89.17        91.84

L.T Investments:                     5.50         5.50

L.T Loans:                           0.67         0.44

L.T Deposits-Trade:                  1.33         1.37

Current Assets:                    223.22       204.53

Total Assets:                      319.89       303.68

------------------------------------------------------

Profit & Loss A/c

------------------------------------------------------

For the Half Year Ended December 31, 2003         2002

------------------------------------------------------

Sales-Net:                         213.39       152.56

Gross Profit:                       58.13        30.06

Operating Profit:                   51.17        23.13

Financial (Charges):                (0.30)      (0.39)

Other Income-Net:                    0.99         1.25

Profit Before Taxation:             48.36        22.33

Profit After Taxation:              31.64        14.51

Earnings Per Share (Rs):             5.73         2.63

Share Price (Rs) Dated 29.03.2004:  68.00            -

Price/Earning Ratio:                11.86            -

Book Value of Share (Rs):           45.57            -

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                       3.52         2.59

Gross Profit Margin (%):            27.24        19.70

Net Profit Margin (%):              14.82         9.51

======================================================