This cement company of Karachi remained in the public sector during 9M 2003-04, the period under review. The Q3 Report states about privatisation process, "There has been no change in the status after Honourable Sindh High Court has granted stay order."
The management of the company has resolved that all their continued efforts shall be to retain and capture more market share in the future period.
During 9M 2003-04, the company's production substantially increased. The production was recorded at 313.6 thousand metric tonnes as against 139.9 thousand metric tonnes produced in the preceding 9M 2002-03 registering 128.4% increase.
The increase in production was driven by substantial expansion in demand which emanated from availability of cheaper housing finance.
Net sales revenue of the company increased to Rs 778.57 million registering 120.8% growth over the amount of Rs 352.66 million generated in the same period last year.
There was sharp turnaround in the operating result as it posted operating profit at Rs 68.39 million as compared to operating loss in the sum of Rs 13.96 million booked in the SPLY. Due to profitable operation, the provision for taxation was relatively quite high at Rs 24.75 million as compared to the provision at Rs 1.78 million in the SPLY.
The net profit after taxation at Rs 45.95 million was registered during 9M 2003-04 (9M 2002-03: net loss Rs 12.44 million). On 5th October 2004, the market price of its share closed at Rs 17.50 carrying 75% premium over the par value of Rs 10.
The profitability has reduced its accumulated loss to Rs 463.94 million from Rs 509.89 million. The future profitability will be applied for reduction in the accumulated loss. Since the company has no long term debt to repay. Moreover the vibrant construction sector will further expand demand for cement.
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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: 560.00 560.00
Reserve: 75.47 75.47
Accumulated (Loss): (463.94) (509.89)
Shareholders Equity: 171.53 125.58
L.T. Deposits: 0.29 0.29
L.T. Debts: - -
Current Liabilities: 472.23 425.91
Tangible Fixed Assets: 164.38 172.26
L.T. Deposits & Deferred Cost: 55.90 51.53
L.T. Loans To Employees: 18.45 15.73
Current Assets: 405.32 312.26
Total Assets: 644.05 551.78
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Profit & Loss A/c For
The Nine Months Ended March 31 2004 2003
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Net Sales: 778.57 352.66
Gross Profit/(Loss): 82.82 (2.09)
Financial Charges: (0.37) (0.24)
Operating Profit/(Loss): 68.39 (13.96)
Other Income: 2.32 3.30
Profit/(Loss) Before Taxation: 70.70 (10.66)
Profit/(Loss) After Taxation: 45.95 (12.44)
Earnings/(Loss) Per Share
(Rs) (Annualised): 1.10 (0.31)
Share Price (Rs) on 5-10-04: 17.50 -
Price/Earning Ratio: 15.91 -
Book Value of Share (Rs): 3.06 2.24
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 0.85 0.73
Gross Profit Margin (%): 10.63 (0.59)
Net Profit Margin (%): 5.90 (3.52)
R.O.A. (%): 7.13 2.25
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