Textile Weaving: PROSPERITY WEAVING MILLS LTD - Half Year Ended March 31 2004
It is a public limited company and a member of Nagina Group of Companies. It was incorporated in 1991 in the province of Punjab. It is textile weaving unit of District Sheikhupura. It was a subsidiary of Nagina Cotton Mills but has ceased to do so.
On 30th September 2003, its manufacturing facilities included 192 air jet looms. Its 100% production capacity has been rated based on 50 pieces of cloth. The production capacity has been rated at 35.05 millions meters per annum.
After completion of BMR activity, 48 air jet weaving machines were had started production in October 2003. It was expected that with additional manufacturing facility there would be increased productivity. The enhanced capacity would also result towards reducing cost per unit.
The company is listed at Karachi and Lahore Stock Exchanges. At present the market value of its share has been quoted at Rs 23.80 carrying 138% premium over the par value of Rs 10. During the last one year the price of the share has increased substantially from Rs 11.90 to Rs 26.45 per share.
The company has been very regular in profit distribution as it has not bypassed dividend in any year since 1997. Mostly the dividend rate has been very attractive compared to yield in the investment in the fixed income securities. Since the last seven years the dividend payout ranged between 10% and 30% and the highest dividend was declared in 1999.
In 5 years the dividend rate was at 20% or more. Last year, 2002-03, the payout was at 20%.
During the half year ended March 31, 2004, the company posted sales at Rs 941.81 million as against Rs 806.81 million registering 11.67% growth over same period last year (SPLY).
Production increased to 16.9 million linear meters of grey cloth (HY 2002-03: 14.32 million linear meters) profit before taxation for the half year amounted to Rs 38.60 million (SPLY Rs 44.25 million). The company has planned to add another 84 air jet weaving machines.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-up: 168.00 168.00
Reserve & Surplus: 161.26 132.68
Shareholders Equity: 329.26 300.68
L.T Debts: 213.13 241.13
Deferred Liabilities-
Staff Gratuity: 11.44 10.10
Current Liabilities: 515.43 614.63
Fixed Capital Expenditure: 587.17 606.49
Current Assets: 482.00 560.05
Total Assets: 1,069.26 1,166.54
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Profit & Loss A/C For
The Half Year Ended March 31 2004 2003
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Sales (Net): 941.81 806.81
Gross Profit: 63.95 81.99
Operating Profit: 39.10 52.12
Other Income: - 0.02
Financial & Other (Charges) Net: (0.50) (7.89)
Profit Before Taxation: 38.60 44.25
Profit After taxation: 10.03 8.95
Earning Per Share (Rs): 1.70 2.10
Share Price (Rs) on 29/07/04 23.80 -
Price/Earning Ratio: 14 -
Book Value of Share (Rs): 19.60 17.90
Debt/Equity Ratio: 39:61 44:55
Current Ratio: 0.94 0.91
Gross Profit Margin (%): 6.79 10.16
Net Profit Margin (%): 1.06 1.11
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COMPANY INFORMATION: Chairman & Mg. Director (Chief Executive): Shaukat Ellahi Shaikh; Director: Shahzada Ellahi Shaikh; Chief Financial Officer (CFO): Muhammad Tariq Shaikh; Corporation Secretary: Raheem Ahmad Qasmi; Registered Office: Nagina House, 91-B-1 M.M. Alam Road, Gulberg III Lahore-54660; Factory: Mouza Ghazi Androon, Sheikhupura Sharaqpur Road, Tehsil & District - Sheikhupura.
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