Engineering: International Industries Limited Nine Months Ending March 31, 2005
IIL belongs to engineering sector and it is listed public limited company. It was incorporated in Sindh province having its registered office located at 101, Beaumont Plaza, Beaumont Road, Karachi. It was incorporated in 1949 is listed on all three stock exchanges of the country.
At present International Industries shares are trading at Rs 109 per share which is nearly 11 times of the par value. During the last one year the market value of the share appreciated by 300% to Rs 380 per share from Rs 95. Even though the rising trend of the share price at present reversed due to sudden crash of the stock market index, the price of the share is still carrying very high premium.
The company manufactures cold rolled steel strips, steel tubes and galvanised pipes. Its manufacturing facilities are located in the Landhi Industrial Area, Karachi.
International Industries Ltd is certified with three international standards which are as follows: {-ISO 9001:2000: Quality Management System ISO 14001: 1996 Environmental Management System (-API Spec.Q1 for API Line Pipe).
The company adopts stringent quality assurances procedures to ensure supply of products of highest quality and the motto is, "Quality cannot be inspected into a product, it must be built into it"
During the 9 months ended March 31, 2005 (9M 2004-05) the company posted net sales in terms of value at Rs 5311.69 million showing impressive growth of 78% as compared to Rs 2989.50 million in the same period last year (SPLY).
The steep growth is not only the recent phenomena but on the trajectory of sales growth since 1994 it shows steep arch except for 1998 when the sales dipped. And it is known to one and all that in this the year of harsh economic sanction was slapped the last annual report 2004 of the company documented the fact that IIL remained the market leader in all segments within the country having a market share of about 30%.
It ventured into the export market since 1998 and now it exports sizable amount of engineering goods and thus commands unquestioned leadership in the export. In 2002 it was awarded export trophy for export of engineering goods and KSE Top 25 companies Award.
In 2004 it was awarded Trophy for Best Export Performance for mechanical engineering goods and the KSE Award for the second consecutive year. During 9M 2004-05, the rising price of steel and zinc led to the erosion of gross margin. The rising interest rates also effected its profitability. However, the company posted higher net profit after taxation at Rs 277.54 million (9M 2003-04: Rs 233.56 million).
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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: 427.89 163.01
Reserve: 643.81 739.67
Shareholders Equity: 1,071.70 902.68
Surplus on Reval. of F/Assets: 544.91 558.65
L.T. Debts: 300.00 256.25
Deferred Taxation: 115.96 109.30
Current Liabilities: 1,999.64 2,416.93
Fixed Assets-Tangible: 1,546.53 1,416.79
L.T. Deposits: 2.76 3.14
Current Assets: 2,482.92 2,823.88
Total Assets: 4,032.21 4,243.81
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Profit & Loss A/c For the Nine Months Ended
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March 31 2005 2004
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Income
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Net Sales: 5,311.69 2,989.50
Gross Profit: 615.42 518.23
Operating Profit: 445.77 388.28
Other Income/(Charges)-Net: 2.53 (4.82)
Financial (Charges): (75.76) (37.40)
Profit Before Taxation: 372.54 346.06
Profit After Taxation: 277.54 233.56
Earnings Per Share (Rs): 6.49 5.46
Share Price (Rs) 15-6-2005: 109.00 -
Price/Earning Ratio: 16.80 -
Book Value of Share (Rs): 25.05 55.38
Debt/Equity Ratio: 15:65 14:91
Current Ratio: 1.24 1.17
Gross Profit Margin (%): 11.59 17.34
Net Profit Margin (%): 5.22 7.81
R.O.E. (%): 25.90 25.87
R.O.A. (%): 6.88 5.50
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COMPANY INFORMATION: Company Information: J.R. Rahim; Managing Director & Chief Executive: Towfiq H. Chinoy; Director: K.M.M. Shah; Chief Financial Officer: Mohammad H. Walli; Company Secretary: Liaquat Ali Tejani; Registered Office: 101, Beaumont Plaza, Beaumont Road Karachi-75530; Web Address: www.iil.com.pk Branch Office: Chinoy House, 6-Bank Square, Lahore-54000. Factory: LX 15-16, Landhi Industrial Area, Karachi 75120.
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