Synthetic & Rayon: RUPALI POLYESTER LIMITED - Nine Months Ended March 31 2005

It is a public limited company and was listed at Karachi Stock Exchange in 1990. At present the Rupali Polyester Ltd share is trading at Rs 46.75 per share which is nearly five times of the par value. During the last one year the price of the share increased to Rs 63.25 from Rs 37.25 per share.
The company maintains strong financial position. The shareholders equity works out to the book value of the share at Rs 58.82 per share which is nearly six times of the par value. It has no long term debts hence financial charges are minimal. The company maintains easy liquidity position as is evidenced from the current ratio of 4.46.
The "other operating income" invariably remained the higher side. During the nine months of its operations, the company's sales increased by 17.2% to Rs 2.804 billion from Rs 2.392 billion posted in the corresponding period of last year. Unfortunately the increase in sales in the third quarter (January-March 2005) at 8% signals slowdown in the growth. The third quarter January-March 2005 witnessed lower gross profit than the figure of third quarter of preceding year (January-March 2004), although overall 9 months' result shows 17.6% increase in the gross profit.
The major reason for the reduction in the gross profit is the increase in prices of PTA & MEG, the company's main raw material which on the average shot up by 49% as compared to the prices of third quarter of 2004. Profit for the third quarter substantially declined but over all net profit of nine months at Rs 164 million was still higher than Rs 146 million posted in the nine months of the preceding year.

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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:             340.68       340.68

Reserves & Profit:               1,663.26     1,499.62

Shareholders Equity:             2,003.94     1,840.30

Deferred Liabilities:              128.79       132.54

Current Liabilities:               419.80       281.29

Fixed Assets:                      612.52       471.54

L.T. Deposits & Prepayments:         5.69         7.02

L.T. Investment:                    59.92            -

Current Assets:                  1,874.40     1,775.57

Total Assets:                    2,552.53     2,254.13

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Profit & Loss A/c for Nine Months Ended March 31

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                                     2005         2004

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Net Sales:                       2,803.51     2,391.79

Gross Profit:                      278.00       236.47

Other Operating Income:             56.00        62.67

Financial (Charges):                (1.45)      (2.12)

Profit Before Taxation:            251.75       224.25

Profit After Taxation:             163.64       145.76

Earning Per Share (Rs):              4.80         4.28

Share Price (Rs) on 20/06/05:       46.75            -

Price/Earning Ratio:                 9.74            -

Book Value of Share (Rs):           58.82        54.02

Debt/Equity Ratio:                  0:100        0:100

Current Ratio:                       4.46         6.31

Gross Profit Margin (%):             9.92         9.89

Net Profit Margin (%):               5.84         6.09

R.O.A. (%):                          6.41         6.47

R.O.E. (%):                          8.17         7.92

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