Glass & Ceramics: TARIQ GLASS INDUSTRIES LIMITED - Nine Months Ended March 31 2004

The company is primarily engaged in the manufacturing and sale of glass containers and tableware's. Its manufacturing facilities are located at 33-KM, Lahore-Sheikhupura Road in the province of Punjab.
In the preceding quarter (Q2 2003-04) report it was learnt that sales had increased substantially because productivity had increased after refiring of one of the two furnaces which were under the rebuilt process.
It was also reported that the management was working hard and devoting itself to face the up coming challenges of WTO.
In this regard an order for supply of a brand new latest tumbler printing machine was placed. It was anticipated that by the end of the financial year July 2003-June 2004, the machine will be available for production.
The company had imported one more light machine and one tableware manufacturing machine. During the third quarter the (Q3 2003-04) competition has intensified due to induction of new tableware plant in the country as well as increase in the volume of smuggled goods.
The third quarterly report emphatically stated that the company look forward towards the future positively based on future export potentials.
To achieve the objective it is in the process of induction of additional machinery for the manufacture of lightweight glass tumblers, glass tumbler printing machine a double gob tableware machinery together with better efficiencies.
The management of the company is confident that the profitability of the company significantly improve once the above mentioned machinery is in production and export volume increases. During the 9 months of the financial year under review, the company posted sales at Rs 521.76 mln as against Rs 355 mln book for the corresponding 9 months of the preceding year.
This shows 46.9% growth in sales. Operating profit leap tragged nearly three times and pre-tax profit shot up seven times. Earning Per Share (EPS) works out to Rs 3.62 per share from Rs 0.38 per share in the same period last year.
The prevailing price of Tariq Glass share is at Rs 32.75 carrying substantial premium as it is more than three times of the par value of Rs 10.
Since the last one year the market value of the share has made steep upward trend as it increased from Rs 24 to Rs 39.75 per share. At the prevailing price PER is placed at 9 times of EPS.

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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:             100.00       100.00

Reserves & Profit:                  76.00        39.79

Shareholders Equity:               176.00       139.79

L.T Debts:                         159.02       167.37

Deferred Liabilities:               18.61        18.65

Current Liabilities:               213.17       208.73

Tangible Fixed Assets:             315.64       324.56

L.T Security Deposits:               6.01         5.70

Current Assets:                    245.15       204.28

Total Assets:                      566.80       534.54

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Profit & Loss A/c For the

 Nine Months Ended          March 31 2004         2003

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Sales:                             521.76       355.00

Gross Profit:                       93.82        52.17

Operating Profit:                   54.38        19.43

Financial (Charges):               (13.32)     (13.20)

Other Income:                        2.20         0.51

Profit Before Taxation:             41.22         5.74

Profit After Taxation:              36.21         3.77

Earnings Per Share (Rs):             3.62         0.38

Share Price (Rs) on 18.08.2004:     32.75            -

Price/Earning Ratio:                 9.04            -

Book Value of Share (Rs):           17.60        13.98

Debt/Equity Ratio:                  57:43        54:46

Current Ratio:                       1.15         0.98

Gross Profit Margin (%):            17.98        14.70

Net Profit Margin (%):               6.94         1.06

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