Dewan Sugar Mills Ltd., is one of the constituent members of Dewan Group which has diversified interest in car assembly, textile sugar etc. It is a public limited company incorporated in the province of Sindh having its registered office situated at 3-A Lala Zar, Beach Hotel Road Karachi. Its manufacturing facilities are located in District Thatta at Jilianabad, Budho Talpur.
The company was listed at Karachi Stock Exchange on 1987. At present the Dewan Sugar shares is trading at Rs 16.25 carrying 62.5% premium over the par value of Rs 10. During the last one year the market value of the share ranged between Rs 11.50 and Rs 18.10. During the last two years the company did not declared dividend.
During the nine months of fiscal year 2003-04, the company's net sales sharply reduced to Rs 516.75 million by 56.6% as compared to Rs 1,190.95 million posted in the same period last year.
The SPLY appears that the company planned voluntary reduction in sales in the event of large carryover of inventory by the sugar industry. On the other hand despite reduced sales the company's gross margin substantially improved to Rs 106.84 million as compared to very small gross profit at Rs 3.63 million. The quantum jump in gross profit is driven by "consistent increase in sugar prices." The directors pleaded that the Government of Pakistan through Trading Corporation of Pakistan should ensure that the sugar purchases should be exported rather than being stored in the warehouses of sellers. They emphasised that the carrying cost of the sold stock is again pushing the cost of doing business. The company has turned the corner by registering substantial profit compared to large loss in the SPLY. During the crushing season 30th November 2003 to 28th March 2004 the company's sugar cane recovery was 9.65% which is good considering the Southern Region's sugar recovery performance. The Q3 Report of the company gives satisfactory report of its polypropylene and Chip Board units.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30 September 30
2004 2003
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Share Capital-Paid-up: 182.56 182.56
Reserves & Profit: 119.84 68.90
Shareholders Equity: 302.40 251.46
L T Debts: 777.86 558.85
Deferred Liabilities: 44.15 39.48
Current Liabilities: 2,688.06 1,468.22
Tangible Fixed Assets: 1,074.54 705.37
L T : 322.40 299.65
L T : 10.37 54.37
Current Assets: 2,405.16 1,258.62
Total Assets: 3,812.47 2,318.01
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Profit & Loss A/c For The
Nine Months Ended June 30 2004 2003
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Sales-Net: 516.75 1,190.95
Gross Profit: 106.84 3.63
Other Income: 21.89 25.04
Financial (Charges): (57.11) (90.59)
Profit/(Loss) Before Taxation: 42.19 (49.58)
Profit/(Loss) After Taxation: 28.19 (79.21)
Earnings Per Share (Rs): 1.55 (4.35)
Share Price (Rs) Dated 28-10-04: 16.25 -
Price/Earning Ratio: 10.48 -
Book Value of Share (Rs): 16.56 13.77
Debt/Equity Ratio: 72:28 69:31
Current Ratio: 0.89 0.85
Gross Profit Margin (%): 20.68 0.30
Net Profit Margin (%): 5.45 6.65
R.O.A (%): 0.74 (3.42)
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COMPANY INFORMATION: Chairman: Dewan Zia-ur-Rehman Farooqui; Vice Chairman: Dewan Ghulam Mustafa Khalid; M.D. Chief Executive: Dewan Mohammad Yousuf Farooqui; Director: Dewan Abdullah Ahmed; Company Secretary: Syed Moonis Abdullah Alvi; Registered Office: Dewan Centre, 3-A, Lalazar Beach Hotel Road Karachi; Wed Address: Not Reported; Factory: Jilianabad Budho Talpur Taluka Mirpur Bathoro District Thatta Sindh.
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