The name Azgard-9 baffles but clarifies on the company website that the name is full of significance. In the ancient Legend "Azgard" was one of Nine worlds in Norsey mythology.
It also reveals that number nine is auspicious and important in Indian, Chinese, Japanese and Greek cultures for various different reasons details of which are narrated on its website www.Azgard9.com, which are thought provoking as it unravels the particular mystery of the ancient ages.
Azgard Nine Limited (ANL) is 100 million US dollar company with sales offices in five countries and its businesses include specialized yarns, denim fabric and denim garments. ANL is a composite textile spinning, weaving, dyeing, stitching unit and a public limited company listed at Karachi Stock Exchange.
It has made large investment in the equities of its subsidiary companies. ANL is holding 100% equity in Pak American Fertilizers Ltd Azsoft (Private) Ltd (99.98% equity) and 51% equity in a foreign company Nafees International Tekstil Sanays ve.
Ticaret Anonim Sirket. By most evaluations this is a large denim company. Its total assets exceed Rs 23.8 billion and net sales of one quarter (January 07-March 07) reached Rs 1.52 billion.
As can be observed from the following performance statistics it has robust financial position as evidenced from the large equity base and above all better than benchmark ratios of long term debt to equity and current ratios.
The directors emphasized in their quarterly report under review that in this quarter once again the company experienced high acceptability of its premium products in the international markets stimulating higher demand and ultimately fuelling better price.
It is pleasant to read that the company has competitive edge because of lower costs by means of own in house power generating units operating on gas and particularly synergies availed due to vertically integrated manufacturing.
ANL was able to earn in the first quarter 2007, pretax profit of Rs 87.75 million and post tax profit of Rs 76.94 million. As compared to the corresponding profit figures of last year's 1st quarter pretax profit declined by 55.5% and post tax profit decreased by 58.7%. These declining results may not be easy to absorb but still show towering achievement when visualized in the backdrop of tough challenges faced by the Pakistani textile sector.
The director's outlook for the following quarter is based on optimism. This is because of expected higher capacity utilization further improvement, in view of international fashion trend moving more favourably towards denim.
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Performance Statistics (Mln Rs)
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Balance Sheet ---As At--- March 31 December 31
2007 2006
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Un-audited Audited
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Share Capital Paid-up: 3,788.84 3,788.84
Reserves & Surplus: 5,417.54 5,383.33
Shareholders Equity: 9,206.38 9,172.17
Surplus on Revaluation
of Fixed Assets: 252.79 257.36
L.T. Debts: 5,655.60 5,795.80
L.T. Deposits: 1.64 1.64
Current Liabilities: 8,736.46 7,964.34
Fixed Assets Tangible: 7,906.79 7,752.55
Intangible Assets: 58.03 60.54
L.T. Investments: 6,302.31 6,302.31
L.T. Deposits: 5.52 19.91
Current Assets: 9,580.22 9,056.00
Total Assets: 23,852.87 12,191.31
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Profit & Loss A/c for the first Quarter Ended
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----March 31---- 2007 2006
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Sales-Net: 1,517.10 1,001.99
Gross Profit: 407.57 283.59
Operating Profit: 326.54 224.37
Other Income: 38.14 69.78
Finance (Cost): (273.27) (91.18)
Profit Before Taxation: 87.75 197.37
Profit After Taxation: 76.94 186.40
Earnings Per Share (Rs): 0.20 1.92
Share Price (Rs) on 25/06/2007: 43.55 -
Price/Earning Ratio: 217.75 -
Debt/Equity Ratio: 37:63 38:62
Current Ratio: 1.10 1.14
Gross Profit Margin (%): 26.86 28.30
Net Profit Margin (%): 5.07 18.60
R.O.A. (%): 0.32 0.80
R.O.E. (%): 0.83 2.03
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COMPANY INFORMATION: Chairman: Mueen Afzal; Chief Executive: Ahmed H. Shaikh; Director: Mohammed Khaishgi; Company Secretary: Muhammad Ijaz Haider; Chief Financial Officer: Abid Amin; Registered Office: Ismail Aiwan-e-Sevence, Off Shahrah-e-Roomi, Lahore-54600; Website URL: www.Azgard9.com; Project Location: Unit I: 2.5 Km off Manga, Raiwind Road District Kasur; Unit II: Alipur Road, Muzaffargarh; Unit III: 20 Km Off Ferozpur Road, 6 Km Badian Road Ruhi Nala Der Khurd, Lahore.
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