This textile composite unit of Umer Group of Companies made record sales. But gross profit nose-dived. The output has by far exceeded the rated production capacity. The company has posted net profit after taxation at Rs 54.45 million as against Rs 76.07 million posted in the preceding year showing sharp reduction by Rs 21.62 million. However the directors maintained their profit distribution policy as they have been regularly declaring cash dividends since the year 2000. For the year under review the payout has been at 7.5% as against 15% in the preceding year.
The directors expressed satisfaction about future outlook as they say that they are prepared to face the challenges expected as a result of WTO and SAFTA regimes.
Blessed Textiles Ltd is one of the constituent members of Umer Group of Companies. One of its sister companies, Faisal Spinning Mills Ltd holds 18.5% of its total 6.43 million paid up shares. The company's directors their spouses and minor children hold 39.7% of the company's stock.
The company was incorporated in the province of Sindh on September 29, 1997. The shares in the company are listed on the three stock exchanges ie Karachi, Lahore, Islamabad. On 8th March 2004, the price of the share closed at a very high rate. It was recorded at Rs 86 per share which is more than 8 times of the par value. During the last one year the price of its share doubled from Rs 48 to 99.10 per share.
The company is a textile composite unit situated in Feroze Watwan, Sheikhupura in the province of Punjab. It is primarily engaged in the manufacturing and sale of yarn and woven fabrics.
Its manufacturing facilities include 23,040 spindles and 111 looms. The installed capacity of the spinning unit has been rated at 7.15 million kgs per annum. During the FY 2003-04, the year under review the actual production of the spinning unit was recorded at 7.24 million kgs after conversion into 20/s count as against 7.69 million kgs output recorded in the preceding year. Hence the company's utilised capacity exceeded the installed capacity in both the year's under comparison.
In the weaving unit the annual installed capacity of the plant has been rated at 14.69 million meters of fabrics. During the period under review the company wove 22.72 million meters of fabrics as against 17.81 million meters in the preceding year showing 27.5% increase in output. The utilised capacity by far exceeded the installed capacity as its works out to 155% as compared to 121% in the preceding year.
During the period under review the company generated sales in terms of value at Rs 2.029 billion (FY 2002-03: Rs 1.344 billion registering quantum jump of 51% over the preceding year's. This rise in sales enabled the company to show highest performance in terms of sales.
On the contrary, gross profit posted lower figure of Rs 161.48 million (2002-03: Rs 182.39 million). Gross margin nose-dived to 8% from 13.6% in the preceding year. Administrative expenses remained frozen at the level of preceding year's. But very high sales figure also pushed the selling and distribution expenses which increased by Rs 1.3 million. Financial charges were down by Rs 9.8 million.
The company booked pre-tax profit at Rs 76.9 million as compared to Rs 91.8 million showing Rs 14.9 shortfall against the preceding year's figure. The company declared 7.5% cash dividend as against 15% in the preceding.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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September 30
2004 2003
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Share Capital-Paid-up: 64.32 64.32
Reserves & Surplus: 330.09 277.64
Shareholders Equity: 394.41 341.96
L T Debts: 514.81 554.90
Deferred Liability-Gratuity: 12.23 14.31
Current Liabilities: 416.56 324.94
Tangible Fixed Assets: 837.14 805.46
L T Loans: 3.04 4.76
L T Deposits: 13.06 4.21
Current Assets: 484.77 421.68
Total Assets: 1,338.01 1,236.11
Sales, Profit & Pay Out
Sales-Net: 2,028.80 1,343.65
Gross Profit: 161.48 182.39
Operating Profit: 111.48 134.58
Other Income: 1.29 3.71
Financial (Charges): (31.81) (41.60)
(Depreciation): (79.55) (68.52)
Profit Before Taxation: 76.88 91.82
Profit After Taxation: 52.45 76.07
Earnings Per Share (Rs): 8.15 11.83
Share Price (Rs) on 8-3-2005: 86 -
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Financial Ratios
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Price/Earning Ratio: 10.55 -
Book Value Per Share: 61.32 53.16
Price/Book Value Ratio: 1.40 -
Debt/Equity Ratio: 56:44 62:38
Current Ratio: 1.16 1.30
Asset Turnover Ratio: 1.52 1.09
Days Receivables: 38 40
Days Inventory: 34 55
Gross Profit Margin (%): 7.96 13.57
Net Profit Margin (%): 2.58 5.66
R O A (%): 3.92 6.15
R.O.C.E. (%): 5.69 8.34
Plant Capacity & Production (Million Kgs/Meters)
A) Yarn After Conversion into 20/s Count
Installed Capacity: 7.15 7.15
Production: 7.24 7.69
Capacity Utilisation (%): 101.26 107.55
Number of Spindles Installed: 23,040 23,040
B) Fabric Yarn After Conversion Into 50 Picks
Installed Capacity: 14.69 14.69
Production: 22.72 17.81
Capacity Utilisation (%): 154.66 121.23
Number of Looms Installed: 111 111
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COMPANY INFORMATION: Chief Executive: Mohammad Shaheen; Director: Mohammad Saleem; Company Secretary: Asif Mahmood FCA, FCIS; CFO: Anwar Hussain FCA; Registered Office: Umer Chambers,10/2 Bilmoria Street off I.I Chudrigar Road, Karachi; Web Address: www.umergroup.com Mills: Feroze Watwan, Sheikhupura; Liaison/Correspondence Office 6-K, Main Boulevard Gulberg II Lahore.
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