Automobile Parts & Accessories: ATLAS BATTERY LIMITED - Nine Months Ending March 31 2005

ABL was incorporated as a public limited company on October 19, 1966 and as a joint collaboration with Japan Storage Battery Company Limited the leading battery manufacturer in the world. ABL's shares are quoted on Karachi and Lahore Stock Exchanges. Atlas Battery Limited (ABL), as the name indicates, is engaged in manufacturing and sale of automotive and motorcycles batteries.
ABL is one of the constituent members of a conglomerate "Atlas Group of Companies" which has diversified interest in engineering, financial and trading sectors.
In the engineering sector the group's companies are Atlas Honda Limited, Atlas Battery Limited, Allwin Engineering Industries Limited and Honda Atlas Cars (Pakistan Ltd).
In the financial sector the group's companies are Muslim Insurance Company Ltd, Atlas Investment Bank Ltd, Atlas Asset Management Company Ltd.
In the trading sector, the Group's companies are Sherazi Trading Co (Pvt) Ltd, Honda Atlas Power Product (Pvt) Ltd, Total Atlas Lubricants (Pvt) Ltd.
ABL is marketing batteries under the AGS brand and the company has vast network of over 1000 dealers and retail outlets.
AGS batteries are approved by PSI (Pakistan Standard Institute) for use in automobiles and accessories. This approval also authorises the manufacturer to export its batteries.
ABL has long association with famous original equipment manufacturers (OEM's) viz., Pak Suzuki Motors Co Ltd, Honda Atlas Cars (Pakistan) Ltd, Dewan Farooq Motors Ltd, Millat Tractors Ltd, Al Ghazi Tractors Ltd, Hinopak Motors Ltd, Atlas Honda Ltd, Adam Motors Ltd.
The fiscal year 2004-05 began on a positive note and the economists as well as industrialists of the country are on the upbeat mood. During the nine months ended March 31 2005, the company's net sales at Rs 681.28 million showed 24.13% growth over the same period last year (SPLY) net sales of Rs 548.81 million.
Despite increase in sales the company's gross profit declined by 8.2% as compared to SPLY. Gross profit remained under pressure as a result of international increase in raw material prices which the company could not pass on to the consumer. Operating Expenses amounted to Rs 74.34 million (9M 2003-04: Rs 58.50 million) registering 27% increase. The pretax profit at Rs 294.64 million was reduced to only 40% of SPLY.

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Performance Statistics                (Million Rupees)

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Balance sheet                                  -As At-

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                                 March 31      June 30

                                     2005         2004

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Share Capital-Paid-up:              45.98        32.84

Reserves & Profit:                 177.34       180.54

Shareholders Equity:               223.32       213.38

L.T. Debts:                         36.00            -

Provision for Gratuity:              1.22         2.41

Deferred Taxation:                  16.43        13.27

Current Liabilities:               186.05       147.21

Fixed Assets-Tangible:             110.74        93.23

Intangible Fixed Assets:                -         0.75

L.T. Deposits:                       2.61         0.53

Current Assets:                    349.67       281.76

Total Assets:                      463.02       376.27

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Profit & Loss A/c For Nine Months Ended

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 March 31                            2005         2004

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Net Sales:                         681.28       548.81

Gross Profit:                      122.96       134.00

Operating Profit:                   48.62        75.50

Miscellaneous Income:                4.83        33.65

Finance (Charges):                 (5.78)       (3.13)

Profit Before Taxation:             44.38        98.70

Profit After Taxation:              29.64        74.91

Earnings Per Share (Rs):             6.45        22.81

Share Price (Rs) 6-6-2005:          78.00            -

Price/Earning Ratio:                 4.59            -

Book Value of Share (Rs):           48.57        64.98

Debt/Equity Ratio:                  14:86        0:100

Current Ratio:                       1.88         1.91

Gross Profit Margin (%):            18.05        24.42

Net Profit Margin (%):               4.35        13.65

R.O.A. (%):                          6.40        19.91

R.O.E. (%):                         13.27        35.11

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