Textile Composite: THE CRESCENT TEXTILE MILLS LIMITED - Half Year Ended March 31 2004
The Crescent Textile Mills Limited (Crestex) is the flagship of renowned conglomerate - Crescent Group. This public limited company was incorporated in the province of Punjab and it was listed on Karachi Stock Exchange in 1959.
Its shares are quoted on all stock exchanges of Pakistan. Crestex is engaged in the business of textile manufacturing and of dyeing, printing, combing, weaving, selling, buying and otherwise dealing in yarn, cloth and other goods and fabric made from raw cotton and synthetic fibre(s).
The company also operates a cold storage. It subsidiary company, Crescent Hattar Limited (formerly SAC Group of Industries Limited) is engaged in fabric manufacturing while Crescent Energy Limited is engaged in electric generation.
Crestex has robust financial backbone as evident from long term debt equity ratio, liquidity ratio and break-up value of the share.
The break-up value of the share works out at Rs 51.57 per share which is more than ten times of the par value.
Crestex share's market price closed on 3rd September 2004 at Rs 31.25 per share which is more than three times of the par value. During the last one year the price of the share has sharply trended upward from Rs 20.50 to Rs 36 per share by 75.6%.
During the first half of FY 2003-04, (FHY 2003-04), the company posted sales in terms of value at Rs 2.484 bln (FHY 2002-03: Rs 2.238 bln) exhibiting growth by 11.0% over the same period last year (SPLY).
But cost of sales increased substantially resulting the decline in gross profit by 6.8% to Rs 254.24 mln from Rs 272.87 mln. Gross margin decreased from 12.19% to 10.23%.
High cotton prices have reduced margins for textile sector which is the backbone of the country.
The chairman of the company Muhammad Anwar emphasised that in future, efforts are needed to deter this situation from policy makers to maintain rationals in prices by ensuring interest of all stakeholders.
He further advocated that the industry needs focused attention by the government. The company's net profit declined by 37% to Rs 20.2 mln.
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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: 406.69 406.69
Reserve & Surplus: 1,690.77 1,670.61
Shareholders Equity: 2,097.46 2,077.30
Fair Value Adjustment: 312.31 188.66
L T Debts: 854.47 968.31
Deferred Income: 1.91 2.19
Deferred Taxation: 38.59 38.59
Current Liabilities: 3,525.35 2,714.16
Tangible Fixed Assets: 1,190.09 1,149.35
Equity Investments: 748.48 636.84
L T Loans & Advances: 1,427.84 1,411.73
L T Security Deposits: 32.90 36.31
Deferred Cost: - -
Current Assets: 3,430.78 2,754.97
Total Assets: 6,830.09 5,989.20
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Profit & Loss A/C For
The Half Year Ended March 31 2004 2003
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Sales: 2,484.13 2,238.15
Gross Profit: 254.24 272.87
Operating Profit: 85.93 118.62
Other Income: 29.39 46.40
Financial (Charges): (57.84) (112.77)
Profit Before Taxation: 40.90 47.80
Profit After Taxation: 20.16 31.80
Earning Per Share (Rs): 0.50 0.78
Share Price (Rs) on 03/09/04: 31.25 -
Price/Earning Ratio: 62.50 -
Book Value of Share (Rs): 51.57 51.07
Debt/Equity Ratio: 26:74 30:70
Current Ratio: 0.97 1.01
Gross Profit Margin (%): 10.23 12.19
Net Profit Margin (%): 0.81 1.42
R.O.A (%): 0.30 0.53
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COMPANY INFORMATION: Chairman: & Chief Executive: Muhammad Anwar; Director: Khalid Bashir; Chief Financial Officer: Sadiq Saleem; Corporate Secretary: Ghulam Muhammad; Registered Office & Share Department: 40-A, Off Zafar Ali Road, Gulerg-5 Lahore; Liaison Office: 8th Floor Sidco Avenue Centre, Strachen Road, Karachi; Web Address: www.ctm.com.pk; Mills: Sargodha Road Faisalabad(Punjab).
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