Pharmaceutical: PARKE, DAVIS & COMPANY LIMITED - First Quarter Ended March 31 2004

14 Oct, 2004

It is a public limited company incorporated in the province of Sindh having its registered office and its factory located at B-2 SITE Karachi. This pharmaceutical company was listed on the Karachi Stock Exchange in 1983.
The company's share invariably carries high premium price. On 12the October 2004, the closing price of the share was quoted at Rs 699 per 10-rupee share and this quotation has remained static throughout last month in September 2004. During the last one year the price of the share ranged between Rs 637 and Rs 1021 per share.
The company maintains highly attractive track record of profit distribution. During the last two years, the yearly payout of cash dividend was at 250%.
The company's transaction at the stock exchange is not liquid as very small number of shares of the company changed hands.
During Q1 2004 the period under review the company sales at Rs 275.78 million showing substantial decline of 11.30% from Q1 2003 sales of Rs 310.91 million.
The directors reasoned that the temporary and unexpected drop in sales was because of the rescheduling of certain incentive schemes run by the company.
They further clarified that it did not affect the market position of the company, as sufficient stock were available with the distributions to meet the demand.
Net profit of the company also went down by 11.09% Rs 73.93 million from Rs 83.16 million posted in Q1 2003.
Despite sharp drop in the profit its profit ratio (Net Profit Margin %) slightly improved from Q1 2003 at 26.74% to 26.81% in the period under review, due to continuous cost containment efforts, and a more productive distribution set up.
As regards the company's performance for the remainder of the year, it is expected that a broad product portfolio and adequate financial resources, complimented with the talented manpower, that the company has, are likely to assist the company in improving its performance emphasized the company directors.



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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 December 31
2004 2003
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Share Capital-Paid-up: 19.58 19.58
Reserve & Profit: 1,097.73 1,023.80
Shareholders Equity: 1,117.31 1,043.38
Staff Retirement Benefits: 62.34 62.34
Current Liabilities: 176.63 154.17
Fixed Assets Tangible: 248.86 251.52
L.T. Loans: 2.52 2.36
L.T. Deposits: 1.25 1.25
Current Assets: 1,103.65 1,004.76
Total Assets: 1,356.28 1,259.89
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Profit & Loss A/c For
The First Quarter Ended March 31 2004 2003
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Sales: 275.78 310.91
Gross Profit: 114.68 127.74
Operating Profit: 76.96 95.73
Other Income: 13.37 5.57
Financial (Charges): (0.60) 0.48
Profit Before Taxation: 84.96 95.59
Net Profit After Taxation: 73.93 83.16
Earnings Per Share (Rs): 37.75 42.46
Share Price (Rs) on 12-10-04: 699 -
Price/Earning Ratio: 18.52 -
Book Value of Share (Rs): 570.63 532.88
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 6.25 6.52
Gross Profit Margin (%): 41.58 41.09
Net Profit Margin (%): 26.81 26.74
R.O.A. (%): 5.45 6.60
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COMPANY INFORMATION: Chairman, Chief Executive & Managing Director: Iqbal Bengali; Directors: Abdul Majeed: Adil Zaman; Company Secretary: S.M. Wajeehuddin; Registered Office & Factory: B-2, S.I.T.E Karachi 75700. Web Address Not Reported.

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