This modernised textile spinning unit of Industrial Estate, Gadoon Amazai NWFP has made history, as for the first time its turnover exceeded the three billion rupees threshold.
During the financial year 2005-06 of 12 months, the company generated sales at Rs 3.46 billion whereas during the last financial year 2004-05 of nine months the company's sales had amounted to Rs 2.0 billion. Increase in turnover based on annualised estimate, is 30%, which is quite impressive.
Increase in turnover has been attributed to the upgradation of production facilities, development of diversified product range, improved sales price of the company's yarn and substantial increase in export sales.
Gross profit margin also increased to 10.01% as compared to 9.51%. Although operating and finance costs were more on the higher side, the company's pretax profit shot upto Rs 52.37 million (2004-05: Rs 37.40 million).
Most importantly, a large amount of provision of deferred taxation has been favourably written back.
Resultantly, his further pushed up the profit as after tax profit reached Rs 78.36 million (2004-05: Rs 29.18 million).
Saif Textile Mills Limited a public listed company on the stock exchanges of Pakistan. It commenced production on January 1, 1992. It is principally engaged in the manufacture and sale of compact cotton and synthetic yarn.
Saif Textile Mills Limited is a part of Saif Group of companies which has its roots in the early 1900's British India's North Western Frontier. The founder of Saif Group, Khan Faizullah Khan was a pioneer in India's energy sector. His son Khan Saifullah Khan consolidated the Group's activities and diversified into food processing with KK & Company the area's premier canner and preserver.
With Khan Saifullah Khan's death at the age of 49, in 1964, his widow, the 36 years old Kulsum Saifullah Khan inherited the mantle of leading the Group. Her efforts as a mother, businesswoman and as a politician in the subsequent four decades makes an extraordinary episode.
She, not only, expanded the Group's activities, but also brought up five young sons, the eldest of whom was 19 at that time. They in their turn expanded upon the base that she had setup, venturing forth into uncharted territory in the telecommunications sector. Today the fourth generation of the family is taking up the role in the business of the group.
The Saif Group has been in the textile business for the last four decades. As the largest shareholders the Saifullah family plays very active role in the organisation. The family members, with strong educational backgrounds (University of Oxford, Carnegie Mellon, University of Pittsburgh, University of Virginia) and rich experiences of Pakistan's business environment bring the strategic vision vital for the success of any company. This information has been posted on its dynamic website.
It is also reported that the company is uniquely positioned at the premium segment of the market. It processes the finest Egyptian (GIZA) and US (PIMA) raw material for Italian luxury brands. It has developed a loyal customer base in Europe, the Far East and the Middle East, with over 50% of its production being exported to these regions. Its manufacturing facilities include 88,476 spindles and a select combination of modern European and Japanese machinery supported by a sophisticated in-house laboratory and stringent quality control systems.
The company also reported that Saif Textile Mills Ltd is one of only two manufacturers in Pakistan, authorised to use Swiss "Com 4" (Reiter Machine Works) label, a global indicator of excellence in quality.
Its world class quality and manufacturing procedures are validated by international accreditation agencies. A SUPIMA(R) licensee, the company is ISO 9002 certified, while the process for ISO 14001, SA 8000 and GIZA(R) certifications are in advanced stage.
At present Saif Textile Mills share is trading at Rs 12.45 per share carrying 24.5% premium over the par value. During the last 52 weeks, the highest price of the share was quoted at Rs 29.10 per share. At present price its market capitalisation has soared to Rs 235.5 million from its paid up capital of Rs 189.13 million of late. There was not much trading in its share as during the first fortnight of November 2006, the trading in its share occurred only for four days aggregating 30,500 shares.
As regards profit distribution, its six years financial statistics do not include historical data of dividend payouts.
From the Directors Report, according to their announcements it is learnt that they recommended cash dividend at 7.5% which is identical to the preceding year's.
According to the pattern of shareholding dated 30-06-2006, its major shareholders were associated company - Saif Telecom Limited with 29.12% NBP (NIT) with 22.27% and investors from local general public with 36.23% of the company's stock.
During the year 2005-06, the company incurred capital expenditure amounting to Rs 296 million. Furthermore the company's Gas Fired Power Plant with an installed capacity of 5.2 MW has commenced operations.
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Performance Statistics (Million Rupees)
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30th June 2006 2005
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Share Capital-Paid-up: 189.13 189.13
Reserves & Surplus: 558.07 497.24
Shareholders Equity: 747.20 686.37
Surplus on Revaluation of
Fixed Assets: 118.91 -
L.T. Debts: 981.95 1,018.62
L.T. Deposits: 1.79 1.25
Staff Retirement Benefits: 19.82 18.03
Deferred Taxation: 15.61 -
Current Liabilities: 1,702.61 1,334.46
Fixed Assets: 2,120.35 1,782.83
Intangible Assets: 1.68 1.89
L.T. Loans: 1.26 1.10
L.T. Deposits: 7.21 7.15
Deferred Taxation: - 12.78
Current Assets: 1,457.39 1,252.97
Total Assets: 3,587.89 3,058.72
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Profit & Loss A/c
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For Year For 9 Months Period
Ended June 30 Ended June 30
2006 2005
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Sales-Net: 3,458.43 1,995.68
Gross Profit: 346.12 189.85
Other Operating Income: 30.98 11.24
Finance (Cost): (211.50) 94.64
(Depreciation): (189.29) (130.07)
Profit Before Taxation: 52.37 37.40
Profit After Taxation: 78.36 29.18
Earnings Per Share (Rs): 4.14 1.54
Dividend Cash (%): 7.50 7.50
Share Price (Rs) on 15-11-2006: 12.45 -
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Financial Ratios
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Price/Earning Ratio: 3.01 -
Book Value Per Share: 39.50 36.29
Price/Book Value Ratio: 0.32 -
Debt/Equity Ratio: 53:47 60:40
Current Ratio: 0.86 0.94
Asset Turnover Ratio: 0.96 0.65
Days Receivables: 40 65
Days Inventory: 107 152
Gross Profit Margin (%): 10.01 9.51
Net Profit Margin (%): 2.27 1.46
R.O.A. (%): 2.18 -
R.O.C.E. (%): 4.16 1.69
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Capacity & Production (Million Kgs)
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Rated Capacity: Not Reported
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Actual Production: 13.734 9.408
Capacity Utilisation (%): - -
B) Number of Spindles Installed: 88,476 88,476
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COMPANY INFORMATION: Chairman: Javed Saifullah Khan; Chief Executive: Osman Saifullah Khan; Chief Financial Officer: Zaheen-ud-Din Qureshi; Company Secretary: Sajjad Hussain; Head Office: Kulsum Plaza, 4th Floor, 2020, Blue Area Islamabad 44000; Registered Office: APTMA House, Tehkal Payan Jamrud Road Peshawar; Website: www.saiftextile.com Factory: Industrial Estate, Gadoon Amazai Distt. Swabi NWFP.
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