Textile Spinning: FAWAD TEXTILE MILLS LIMITED - Half Year Ended March 31 2004

This unit is also located in Tehsil Chunian in the Punjab province and is primarily engaged in the manufacture and sale of yarn. Its shares are quoted on the stock exchanges in Lahore and Karachi.
The salient features of its performance during the six months of 2003-04, are: Turnover increased by 25.26% to Rs 301.87 million from Rs 241 million posted in the same period last year (SPLY). In terms of quantity, the company sold 2.164 million kgs of yarn as against sale of 2.27 million kgs in the SPLY. Export sales of yarn was recorded at 717.63 thousand kgs as against 868.77 thousand kgs of yarn exported in the corresponding period last year.
Manufacturing costs continued to increase. So was the case with cost of fuel and power. There was substantial pressure on G.P. margin which eroded by 3.22 percentage points from 8.80% in the corresponding period last year to 5.58% during the period under review.
The erosion in margin has been attributed by company directors to mainly slump in yarn prices and at the same time rise in the cotton price from Rs 2130/- per maund to Rs 3,089 per maund during the period under review.
At the bottom line, the effort of rise in sales was neutralised and could arrive at the break-even point with nominal profit of Rs 1.83 million which was very close to last year's positive figure of Rs 1.03 million.
The financial position of the company continued to be robust as is evident from, solvency and liquidity ratio and break-up value of the share. To make the enterprise more viable the directors have planned to make additions in the plant and machinery.

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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:              92.07        92.07

Unappropriatated Profit:            27.01        23.47

Shareholders Equity:               119.08       115.54

Surplus on Revaluation of

 Fixed Assets:                      20.11        32.65

L T Debts:                          90.77        96.47

Deferred Liabilities:               30.30        19.17

Current Liabilities:               299.56       109.51

Fixed Capital Expenditure:         223.57       231.90

L T Deposits:                        0.03         0.03

Current Assets:                    336.22       141.41

Total Assets:                      559.82       373.34

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Profit & Loss A/c For The

 Half Year Ended            March 31 2004         2003

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Sales:                             301.87       241.00

Gross Profit:                       16.87        21.23

Operating Profit:                   10.31        13.44

Other Income:                        0.06         0.04

Financial (Charges):                (6.84)     (11.11)

Profit Before Taxation:              3.35         2.25

Profit After Taxation:               1.83         1.03

Earning Per Share (Rs):              0.20         0.11

Share Price (Rs) on 15-09-04:        7.00            -

Price/Earning Ratio:                35.00            -

Book Value of Share (Rs):           12.93        12.54

Debt/Equity Ratio:                  39:61        39:61

Current Ratio:                       1.12         1.29

Gross Profit Margin (%):             5.58         8.80

Net Profit Margin (%):               0.60         0.43

R.O.A (%):                           0.33         0.28

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