In sharp contrast to the last full year's adverse results, the company's financial and operating results have significantly improved during the year under review. About the sharp turnaround, the directors of this manufacturing unit of filament yarn stated that the profitability improved due to diversification from production of normal yarn to specialty yarn.
The company made investment for production and marketing of specially yarn. Resultantly sales in terms of value increased by 6.8% to Rs 822.77 million during 9M 2003-04, the period under review as compared to Rs 770.20 million recorded for the same period last year (SPLY). The growth in sales is move pronounced in the comparative study of Q3 2003-04, of last Q3 2002-03 as sales increased by 20%. It may be mentioned to understand the growth trend that the last full year (2002-03) sales had almost stagnated compared to the figure posted for the prior to that year (2001-02). What is more creditable is that during 9M 2003-04, the company's full efforts to maximize export have realised. As export sales reached Rs 93.87 million. The management further emphasised that the company focus is on exports and at the same time on value added items are expected to bring higher positive results in the future.
The company posted pretax profit at Rs 12.22 million which replaced relatively large pretax loss of Rs 42.70 million booked in the SPLY. This achievement is laudable considering the prevalent business environment. According to the 3 Quarterly Report, the rate of duty on chips (raw material of filament yarn) and tax are high. The raw material prices show increasing trend and prices of chips went up from US$800 to US$1000 per ton. The directors fear that the profitability might be effected profit in the coming months.
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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 Capita-Paid-Up: 150.00 150.00
Share Premium: 337.40 337.40
Accumulated (Loss): (128.98) (137.76)
Shareholders Equity: 358.42 349.64
L T Loan from Directors: 109.37 100.77
L T Debt: 91.48 77.52
Deferred Liability: 68.53 68.45
Current Liabilities: 786.07 683.06
Intangible Fixed Assets: 0.70 0.86
Fixed Assets Tangible: 876.87 906.67
Development Cost: 0.33 -
L T Deposits: 2.49 2.11
Current Assets: 533.48 369.80
Total Assets: 1,413.87 1,279.44
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Profit & Loss A/c For the
Nine Months Ended March 31 2004 2003
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Sales: 822.77 770.20
Gross Profit: 125.96 58.41
Operating Profit/(Loss): 26.17 (24.62)
Other Income: 10.85 11.17
Financial (Charges): (24.80) (29.25)
Profit/(Loss) Before Taxation: 12.22 (42.70)
Profit/(Loss) After Taxation: 8.78 (45.19)
Earning Per Share (Rs): 0.59 (3.01)
Share Price (Rs) on 20-09-04: 52.80 -
Price/Earning Ratio: 89.49 -
Book Value of Share (Rs): 23.89 23.31
Debt/Equity Ratio: 16:84 15:85
Current Ratio: 0.68 0.54
Gross Profit Margin (%): 15.30 7.58
Net Profit Margin (%): 1.07 (5.87)
R.O.A: 0.63 3.53
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COMPANY INFORMATION: Chairman: S.M. Ahmed; Chief Executive: Sohail Ahmed; Director: Asim Ahmed; Company Secretary: Muneer Ahmed; Registered Office: B-40, S.I.T.E. Karachi; Web Address: Not Reported; Factory: Not Reported.
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