Glass and Ceramics: KARAM CERAMICS LIMITED - Nine Months Ended March 31, 2004

Karam Ceramics Limited is an ISO 9002 certified company and it claims to be, "The Largest Ceramic Manufacturers in Pakistan" and it is "in technical collaboration with DOULTON Bathrooms England."
The company was incorporated in the province of Sindh. Its manufacturing facilities are situated at Deh Halkani, Hub Dam Road Karachi. The principal activity of the company is manufacture and sale of sanitary ware, tiles and allied accessories.
The annual production capacity of the plant is 3000 tons of sanitary wares and 1.76 million sq. meters of tiles. During the last financial year 2002-03, the company had attained 22.3% utilised capacity in sanitary ware and 114.2% utilised capacity in tiles.
But the statistics of utilised capacity its 3rd Quarters (2003-04) report is not available.
Karam Ceramics shares are listed on Karachi Stock Exchange. At present the share is trading at Rs 21.50 per share carrying 115% premium over the par value of Rs 10. During the last one year the market value of the share substantially improved to Rs 21.50 from Rs 15 per share.
During 9m 2003-04, the period under review, sales in terms of value declined by 4.2% to Rs 348.72 million from Rs 364.03 million posted in the same period last year (9m 2002-03).
However gross profit amount and gross profit margin figure were on the higher side. The company registered gross profit at Rs 70.63 million as against the figure of Rs 65.55 million posted in the corresponding period of last year. Gross profit increased by 7.7% and gross margin was up at 20.25% from 18.01% in the SPLY.
Other income had shortfall of Rs 3.33 million and administrative, selling and general expenses escalated by Rs 6.2 million. This caused decline in the pre-tax profit despite reduction in financial charges reduced by Rs 2.44 million.
The company suffered decline in the pre-tax profit by Rs 1.79 million as it posted at Rs 23.94 million as compared to Rs 25.73 million in the same period last year.

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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:               109.12     109.12

Unappropriated Profit:                34.80      22.60

Shareholders Equity:                 143.92     131.72

Deferred Liability - Gratuity:        35.13      34.71

L.T Debts:                           108.74      96.06

Deferred Income:                       2.82       4.09

Deferred Taxation:                    45.18      35.18

Current Liabilities:                 164.17     232.00

Tangible Fixed Assets:               392.46     411.35

L.T Deposits & Prepayments:            0.90       1.01

Current Assets:                      106.60     121.40

Total Assets:                        499.96     533.76

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Profit & Loss A/c For the

 Nine Months ended           March 31, 2004       2003

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Sales-Net:                           348.72     364.03

Gross Profit:                         70.63      65.55

Other Income:                          1.28       4.61

Financial (Charges):                 (13.60)   (16.04)

Profit Before Taxation:               23.94      25.73

Profit After Taxation:                12.20      14.77

Earning Per Share (Rs):                1.12       1.35

Share Price (Rs) on 28.05.2004:       21.50          -

Price/Earning Ratio:                  19.20          -

Book Value Per Share (Rs):            13.19      12.07

Debt/Equity Ratio:                    43.04      42.17

Current Ratio:                         0.65       0.52

Gross Profit Margin (%):              20.25      18.01

Net Profit Margin (%):                 3.50       4.05

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