Textile Composite: THE CRESCENT TEXTILE MILLS LIMITED - Year (9 Months) Ended 30-06-2005 & 9 Months Ended 31-03-2006
The 3rd Quarterly Report of current year 2005-06, has been downloaded from its active website. So the review starts from the nine months cumulative financial and operating results.
And immediately after that the review on its Annual Report 2005 of last year and its performance statistics have been dovetailed.
The directors lament that the depressed sales due to international market conditions coupled with upsurge in the price of furnace oil used for energy generation, higher depreciation charge and financial costs contributed to a loss of Rs 92.02 million to the company during nine months period of the current financial year as against profit of Rs 63.51 million the corresponding period last year.
The directors also pointed out that increase in borrowing level due to BMR of plant and machinery as well as markup rates have made negative impact on the profitability of the company.
The financial costs increased drastically by 90% over the cost of same period last year. However, the directors anticipate that implementation of BMR projects would give boost to exports.
The Crescent Textile Mills Ltd is one of the constituent members of a large industrial group Crescent Group. Some of its other members are Crescent Sugar Mills and Distillery Limited, Shakarganj Mills Ltd, Crescent Steel and Allied Products Limited, Crescent Boards Ltd Jubilee Spinning and Weaving Mills Ltd.
It is a public limited company and was listed on the Karachi Stock Exchange in 1959. Its shares are also quoted on the Lahore and Islamabad Stock Exchanges.
On October 1, 2004, the wholly owned subsidiaries of the company, Crescent (Hattar) Limited and Crescent Energy Limited were merged. Therefore the accounts for the nine months ended June 30, 2005 include financial results of merged companies but corresponding figures of the financial results are for the company (Crescent Textile) only.
Under the regulatory directives, the financial year of the company changed from September 30 to June 30. So, the financial statements included in the Annual Report 2005 (56th Annual Report) were drawn for nine months period ended on June 30, 2005.
The Crescent Textile Mills Ltd is a textile composite unit and engaged in the business of textile manufacturing comprising spinning, combing, weaving, dyeing, bleaching, printing, buying selling and otherwise dealing in yarn, cloth and other goods and fabrics made from raw cotton and synthetic fibres.
The company also operates a cold storage and after merger it has a captive power generating unit.
It has been reported in the Annual Report that the company has already made substantial investments of Rs 685 millions for the improvement of its asset base. This included Ring Spinning Frames Air Jet Looms, new Dyeing and Mercerizing Range and various stitching machines as well as two new gas fuelled engines for expensive energy. A new printing machine has also been imported to cater to the export requirements of printed fabrics orders.
During the last one year market value of its share had increased from Rs 20.45 to Rs 51.50 per share and recently the share has been traded at Rs 22.55 per share which is more than double of the par value.
As regards ownership of its equity on June 30, 2006, the company directors and members of their family held 3.2% of the company's total 40.67 million shares of Rs 10 each. Associated companies owned 11.5% and general public held 50.05% of the company's stock. Remaining shares were held by other institutional investors.
The company has satisfactory record of annual dividend payout since the year 2000 as it has not skipped any yearly dividend. The average dividend payout rate during the last five years had been 21.1 percent which is better than return on most of the fixed income marketable securities. For last year 2004-05, and the year before 2003-04, the yearly dividend has been at 10%, which may be termed as modest rate of payout.
During the nine months of last year 2004-05, (9M 2004-05) the company posted net sales at Rs 4117.13 million. Its annualised sales estimate works out to Rs 5490 million which is slightly more than preceding year's 12 months (FY 2003-04) actual net sales of Rs 54.03 million.
Its nine months (2004-05) gross profit and pretax profit figures are much higher than previous year's 12 months figures.
The directors seem to be uncertain about improved margins and volume sales for coming months because of price competitiveness and slackness in demand of textile exports.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30 September 30
2005 2004
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Share Capital-Paid-up: 406.69 406.69
Reserves & Surplus: 2,255.59 2,077.57
Shareholders Equity: 2,662.28 2,484.26
Deferred Income on Sale
& Lease Back of Fixed Assets: 1.23 1.64
L.T. Debts: 1,373.02 1,233.60
Deferred Tax: - 43.37
Current Liabilities: 3,194.11 3,086.91
Fixed Assets: 2,022.39 1,292.74
L.T. Investments: 751.59 827.74
L.T. Loans & Advance: 1,465.45 1,441.35
L.T. Security Deposits: 21.68 16.18
Deferred Tax: 10.08 -
Current Assets: 2,959.45 3,271.77
Total Assets: 7,230.45 6,849.78
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Profit & Loss A/c for
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9 Months from For Year From
Oct 04 to June 05 Oct 03 to Sept 04
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Sales-Net: 4,117.13 5,403.39
Gross Profit: 540.73 518.92
Other Operating Income: 81.35 96.71
Profit from Operations: 301.61 214.12
Finance (Cost): (174.98) (115.82)
Depreciation: (138.68) (149.50)
Profit Before Taxation: 126.62 98.30
Profit After Taxation: 79.62 41.10
Earnings Per Share (Rs): 1.96 1.01
Dividend Per Share: 1.00 1.00
Share Price (Rs) on 28/07/06: 22.55 -
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Financial Ratios
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Price/Earning Ratio: 11.51 -
Book Value Per Share: 65.46 61.08
Price/Book Value Ratio: 0.34 -
Debt/Equity Ratio: 34:66 33:67
Current Ratio: 0.93 1.06
Asset Turn Over Ratio: 0.57 0.79
Days Receivables: 94 84
Days Inventory: 100 77
Gross Profit Margin (%): 13.13 9.60
Net Profit Margin (%): 1.93 0.76
R.O.A. (%): 1.10 0.60
R.O.C.E. (%): 1.97 1.10
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Plant Capacity & Production
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A) Spinning
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Normal Production Capacity 20's Count
Based on 3 Shifts Per Day (Kgs): 25,847 34,121
Actual Production of Yarn
After Conversation into 20's
Based on 3 Shifts Per Day (Kgs): 24,986 34,002
Capacity Utilisation (%): 96.67 99.65
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B) Weaving
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Normal Production 50 Picks
Based on 3 Shifts Per Day (Sq Mtrs): 49,735 39,161
Actual Production after Conversion
Into 50 Picks Based on 3 Shifts
Per Day (Sq Mtrs): 42,902 34,424
Capacity Utilisation (%): 86.26 87.90
C) Number of Spindles Installed: 118,720 117,472
Number of Murata Jet Spinning
Spindles Installed: 288 288
Number of Rotors Installed: 1,000 1,000
Number of Sulzer Looms Installed: 167 187
Number of Air Jet Looms Installed: 116 -
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A) Towels (Kgs)
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Normal Production Capacity
Based on 3 Shifts Per Day (Kgs): 491 654
Actual Production
Based on 3 Shifts Per Day (Kgs): 376 424
Capacity Utilisation (%): 76.57 64.83
Number of Towel Air Jet Looms Installed: 12 12
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COMPANY INFORMATION: Chairman & Chief Executive: Muhammad Anwar; Director: Khalid Bashir; Chief Financial Officer: Sadiq Saleem; Corporate Secretary: Haroon Adeel; Registered Office & Share Department: 40-A Off Zafar Ali Road Gulberg B, Lahore; Liaison Office: 8th Floor, Sidco Avenue Center Stratchen Road, Karachi; Web Address: www.crescenttextile.com; Factory: Sargodha Road, Faisalabad (Punjab).
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