The profitability and productivity of this cement manufacturing company of Hub Chowki, Balochistan has substantially improved. The financial backbone of the enterprise has remained robust as evidenced by its solvency, liquidity and profitability ratios.
The Directors' review has ascertained that the medium to long term outlook of cement seems to be extremely positive.
Hence the directors of the company in their meeting held in April 2004, approved in principle, the creation and installation of the second line having the clinker production capacity of 3,300 tons per day.
This capacity enhancement would make Attock Cement Pakistan further competitive. During 9M 2003-04, the company's production increased to 431.402 metric tons of cement as compared to 404,677 metric tons recorded in 9M 2002-03. The capacity utilisation went up to 85.13% from 73.82% in SPLY.
Sales in terms of value increased to Rs 1.266 billion from Rs 1.080 billion in SPLY registering 17.21% growth ie Rs 186.01 millions. Due to higher sales and increased capacity utilisation the overall gross margin improved from 18.1% to 29% and operating margin increased to 23.59% from 11.75%.
Resultantly pre-tax profit increased by 95.3% to Rs 293.55 millions from Rs 150.38 millions in 9M 2002-03. Earning Per Share (EPS) works out to Rs 2.59 as compared to EPS of Rs 1.48 in SPLY. At the closing market price of its share on 5th July 2004 at Rs 51.50 per share, the Price Earning Ratio (PER) is nearly multiple of 20.
The PER exhibits top confidence of the investors in the enterprise.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2004 2003
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Share Capital-Paid-up: 721.63 721.63
Unappropriated Profit: 555.86 368.69
Shareholders Equity: 1,277.49 1,090.32
Deferred Income: - 0.03
L.T. Debts: 18.18 23.30
Deferred Liabilities: 187.16 134.42
Current Liabilities: 290.60 240.88
Tangible Fixed Assets: 1,100.56 887.82
L.T. Investments: 9.65 9.65
L.T. Loans & Advances: 5.24 3.64
L.T. Deposits: 1.50 2.12
Current Assets: 656.48 585.72
Total Assets: 1,773.43 1,488.95
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Profit & Loss A/c
For the Nine Months Ended March 31 2004 2003
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Net Sales: 1,266.03 1,080.02
Gross Profit: 367.21 195.94
Operating Profit: 298.66 126.88
Other Income: 21.65 41.63
Financial (Charges): (6.52) (6.45)
Profit Before Taxation: 293.55 150.38
Profit After Taxation: 187.17 106.95
Earnings Per Share (Rs): 2.59 1.48
Share Price (Rs) on 05.07.2004: 51.50 -
Price/Earning Ratio: 19.88 -
Book Value Per Share: 17.70 15.11
Debt/Equity Ratio: 1:99 2:98
Current Ratio: 2.26 2.43
Gross Profit Margin (%): 29.00 18.14
Operating Margin (a): 23.59 11.75
Net Profit Margin (%): 14.78 9.90
R.O.A (%): 10.55 7.18
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