Fatima Enterprises Limited was incorporated in Multan on 13 November 1976 as public limited company for taking over such assets of Sh. Fazal Rahman & Sons Limited which were not nationalised or subsequently returned by the Government.
It is principally engaged in the business of cotton ginning extraction of seed oil, manufacture and sale of vegetable ghee, cooking oil, laundry soap and woollen/cotton/synthetic yarn.
Its shares are quoted on Karachi Stock Exchange. During the last one year the market capitalisation of its share increased 3.5 times as its share value increased to Rs 35.45 from Rs 15 per share.
The upward trend in the share price shows increased confidence of the investors in the strong fundamentals of the company as well as availing opportunity from rising share market index.
Nevertheless the positive perception is despite the fact that the company did not declare dividends in the past two years.
The company enjoys excellent financial position as evidenced from better long term debt to equity ratio, very close to bench mark ratio of the current ratio and relatively high break-up value of the share at Rs 26.67 carrying 167% premium over the par value.
About the future financial health of the company Chief Executive Sh. Nishat Ahmad emphatically stated the new financial year started with even higher raw material prices and uncertainly in local as well as export markets.
Even then the management is confident that its continuing efforts to reduce costs, improve operational efficiencies and explore new markets will result in improving financial health in future also.
During the period under review, the company's sales registered 15.6% growth to Rs 2.711 bln as compared to Rs 2.346 bln posted in the same period last year (SPLY). Despite glaring improvement in sales revenue the operating expenses as a percentage of sales declined to 1.05% from 1.10% in the SPLY. Other income more than doubled.
Financial charges slashed by 24%. The cash and bank balances almost doubled reaching Rs 95 mln as compared to Rs 49.5 mln in SPLY. Net profit after tax produced Rs 4.97 EPS as compared 0.76 EPS in SPLY.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-Up: 142.31 142.31
Reserve & Surplus: 237.26 169.18
Shareholders Equity: 379.57 311.49
L T debts: 500.93 553.95
Deferred Liabilities: 58.99 58.34
Current Liabilities: 2,836.37 1,393.83
Tangible Fixed Assets: 1,038.99 1,070.28
Investments: 2.42 2.42
Loans, Deposits & Prepayments: 15.30 8.77
Current Assets: 2,719.15 1,236.14
Total Assets: 3,775.86 2,317.61
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Profit & Loss A/c For the
Half Year Ended March 31 2004 2003
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Sales-Net: 2,711.72 2,346.14
Gross Profit: 180.10 121.78
Operating Profit: 151.46 96.00
Other Income: 5.46 2.37
Financial (Charges): (56.00) (73.62)
Profit Before Taxation: 93.90 23.55
Profit After Taxation: 70.79 10.88
Earning Per Share (Rs): 4.97 0.76
Share Price (Rs)8/09/04: 23.00 -
Price/Earning Ratio: 4.63 -
Book Value Of Share (Rs): 26.67 21.89
Debt/Equity Ratio: 57:43 64:36
Current Ratio: 0.96 0.89
Gross Profit Margin (%): 6.64 5.19
Net Profit Margin (%): 2.61 0.46
R.O.A: 1.86 0.47
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