The year under review was the best year in the history of the company wherein the company achieved highest ever sales volumes and in turn better retention, profitability and earnings per share.
In comparison with prior year, operating profit of the company increased by Rs 706.4 million or 151.7% to Rs 1,172.13 million from Rs 465.72 million in the previous year. Profit before tax increased by Rs 704.12 million (154%) and profit after taxation went up by 207.5% to Rs 861.73 million which is quite impressive growth rate.
The profits before and after taxation showed phenomenal growth due to net capital gain of Rs 334 million realized from the sale of shares of Attock Petroleum Ltd the future outlook is quite optimistic as with rising economic activity the demand for cement will continue to expand. However the production capacity will also expand further which will generate competition. At the same the soaring coal prices will affect margin.
Attock Cement Pakistan Limited was incorporated in the province of Sindh on October 14, 1981 as a public limited company. Its holding company Pharaon Commercial Investment Group Ltd Saudi Arabia owns 84.05% of the company's total 72.162 million paid-up shares of Rs 10 each. The individual investors own 4.23% of its stock.
The company is listed on Karachi Stock Exchange and during the last one year the market value of the share ranged between Rs 48.50 and Rs 86 per share. On 19th October 2005, the price of the share was recorded at Rs 79 per share for the closing quotation.
During the year the company recommended cash dividend @12.5%. Its main business activity is manufacturing and sale of cement and its manufacturing facility is located in the province of Balochistan in Tehsil Hub District Lasbella which is the adjoining district of Karachi which is huge market for cement as well as it is exit point for export.
During the year under review, Attock Cement achieved record cement sales of 730,704 tonnes which is 21% higher than corresponding sales figure for the last year.
Further, during the year the company was able to sell 63,190 tonnes of clinker in the export markets of UAE and Qatar.
Factory operated at 103% capacity (clinker) as compared to 92% in the last financial year and produced 740,476 tonnes clinker and 728,486 tonnes cement.
The plant continued to operate uninterrupted throughout the year and a number of technical improvements were put into effect to ensure optimum efficiency and continuous supply of product to the customer.
During the year under review, the company posted gross sales revenue of Rs 3.5 billion (Rs 2.7 billion in 2003-04) and net sales works out to Rs 2.587 billion registering 37.6% growth over net sales of Rs 1.880 billion posted in the preceding year.
The contributing factors for this impressive growth were full capacity sales volumes and consistency good product price in the market throughout the year.
The company is marketing cement under Falcon Brand which is considered premium choice by its customer. Falcon continued to remain the market leader in the market of Southern Region and attracted premium price.
Apart from selling Falcon Brand in the commercial market the company exported 49,050 tonnes cement to neighbouring and gulf countries. The other initiative was the export of 2025 tonnes of Slag Cement in one-ton big bag to UAE.
During the year the company successfully launched its big bag facility. With this addition the company became the first Pakistani Cement Company to have the facility to supply in one-ton bags at sites where mass concreting is being undertaken.
The work on its Line-2 project is progressing satisfactorily. The company has signed an agreement (for financing the project) with a consortium of banks led by Faysal Bank Ltd the total cost of the project is approximately Rs 3.2 billion out of which banks are providing funding of Rs 2.5 billion.
It is reported that the management is making prudent financial spendings and also trying making to finance the project through international cash generations. So for the company spent Rs 1.46 billion on Line-2 project out of which Rs 910 million has been financial through internal cash generation.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-Paid-up: 721.63 721.63
Reserves & Surplus: 1400.37 648.92
Shareholders Equity: 2,122.00 1,370.55
L.T. Debts: 556.76 14.32
Staff Retirement Benefits: - 19.90
Deferred Taxation: 174.34 164.20
Current Liabilities: 554.09 281.21
Fixed Assets: 2,547.03 1,109.43
L.T. Investment: 4.50 9.65
L.T. Loans & Advances: 7.25 5.29
L.T. Deposits: 10.98 7.18
Current Assets: 837.43 718.63
Total Assets: 3,407.19 1,850.18
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Sales, Profit & Pay Out
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Sales: 2,587.41 1,880.92
Gross Profit: 1,027.58 613.20
Other Operating Income: 384.87 32.57
Operating Profit: 1,172.13 465.72
Finance (Cost): (11.27) (8.98)
(Depreciation): (106.84) (115.64)
Profit Before Taxation: 1,160.86 456.74
Profit After Taxation: 861.73 280.23
Earning Per Share (Rs): 11.94 3.88
Dividend: 90.20 90.20
Share Price (Rs) on 19/10/05: - 79.00
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Financial Ratios
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Price/Earning Ratio: 6.62 -
Book Value Per Share: 29.41 18.99
Price/Book Value Ratio: 2.69 -
Debt/Equity Ratio: 21:79 1:99
Current Ratio: 1.51 2.56
Assets Turn Over Ratio: 0.76 1.02
Days Receivables: 1 1
Days Inventory: 38 57
Gross Profit Margin (%): 39.71 32.58
Net Profit Margin (%): 33.30 14.89
R.O.A (%): 25.29 15.15
R.O.C.E (%): 30.20 17.86
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Plant Capacity & Production (Cement 000' Metric Tons)
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Production Capacity: 756.00 756.00
Actual Production: 728.49 607.13
Capacity Utilization (%): 96.36 80.31
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COMPANY INFORMATION: Chairman: Dr Ghaith R. Pharaon; Chief Executive: Babar Bashir Nawaz; Director: Abdur Sattar; Company Secretary: Irfan Amanullah; Registered Office: 5th Floor, PNSC Building M.T. Khan Road Karachi; Web Address: Not Reported; Plant: Hub Chowki Lasbella Balochistan.
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