This cement manufacturing unit of Sangjani Islamabad has successfully brought turn around from substantial net loss to moderate profit after tax. Hence on 31st March 2004, its accumulated deficit reduced to 68% of accumulated deficit on 1st July 2004.
Resultantly Break-up value of the share improved to Rs 11.16 per share carrying 11.6% premium over the par value of Rs 10.
Fecto Cement Ltd share is listed on all stock exchanges in the country. With the improvement in its operating result as well as due to buoyant stock market the market value of its share witnessed massive appreciation during last year from below par value at Rs 7.15 to Rs 23.30 per share.
On 5th August 2004, the price of the share closed at Rs 15.50 per share carrying substantial premium over the par value.
During the nine months (9M 2003-04), the period under review, the company registered sales in terms of value at Rs 962.88 mln (9M 2002-03: Rs 792.72 mln showing increase by Rs 170.16 mln ie 21.5% over the amount of same period last year (SPLY).
There has been very encouraging increase in gross margin reflecting substantial spread between sales and cost of sales. It is obvious that due to expansion is demand of cement the selling price of cement remained on much higher side than the cost of raw material and overheads.
The enterprise also improved its result on the bottom line due to large savings on account of financial charges. Financial charges during 9M 2003-04, reduced to Rs 35.16 mln from Rs 48.08 mln by Rs 12.92 mln.
Profit before taxation was posted at Rs 76.98 mln as against pre tax loss of Rs 91.73 mln posted for the same period last year SPLY compared to the preceding corresponding period provision for taxation was high. The provision soared to Rs 32 mln in during from Rs 4 mln in SPLY.
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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: 1,934.70 1934.70
Share Capital-Paid-Up: 456.00 456.00
General Reserve: 150.00 150.00
Accumulated (Loss): (97.17) (142.19)
Shareholders Equity: 508.83 463.81
L.T Debts: 49.89 58.34
L.T Deposits: 12.73 13.12
Deferred Liabilities: 146.36 122.40
Current Liabilities: 511.80 662.80
Fixed Assets-Tangible: 730.49 756.89
L.T Deposits: 12.96` 11.65
Current Assets: 486.16 551.93
Total Assets: 1,229.61 1,320.47
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Profit & Loss A/C For
Nine Months Ended March 31 2004 2003
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Sales-Net: 962.88 792.72
Gross Profit: 173.91 10.30
Operating Profit/(Loss) 107.58 (49.17)
Other Income: 4.56 5.52
Financial (Charges): (35.16) (48.08)
Profit/(Loss)Before Taxation: 76.98 (91.73)
Profit/(Loss)After Taxation: 45.02 (95.90)
Earning/(Loss)Per Share (Rs: 0.99 (2.10)
Share Price (Rs) on 05/08/04: 15.50 -
Price/Earning Ratio: 15.66 -
Book Value Of Share (Rs): 11.16 10.17
Debt/Equity Ratio: 9:91 11.17
Current Ratio: 0.95 .0.83
Gross Profit Margin (%): 18.06 1.30
Net Profit Margin (%): 4.67 (12.10)
R.O.A (%): 3.66 (7.62)
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COMPANY INFORMATION: Chairman: Mohammad Asad Fecto; Chief Executive: Mohammed Yasin Fecto; Director: Abdul Jaleel Shaikh; Secretary: Abdul Aleem FCA; Registered Office: 35-Darulaman Housing Society Block 7/8 Shahra-e-Faisal Karachi; Web Address: www.listedcompanies.com.pk/fecto; Factory: Sangjani Islamabad.
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