It is a public limited company. It was incorporated in the province of Sindh in 1993 and is listed on stock exchanges in Pakistan. It is principally engaged in the manufacture and sale of Biaxially Oriented Polypropylene (BOPP) film.
It is a joint venture between Mitsubishi Corporation of Japan and Packages Limited of Pakistan. Its manufacturing facilities are located at Hattar Industrial Estate NWFP and North Western Industrial Zone, Port Qasim Karachi. BOPP is a packaging film and the company's product comes in four different grades and has the following product characteristics: Good barrier to moisture; Excellent transparent gloss; Good printability; Good sealability.
The half yearly report of the company informed that its expansion programme relating to this installation of third BOPP manufacturing line at Port Qasim, Karachi is progressing satisfactorily. All the major shipments had arrived by August 2004 and then the installation work was in full swing. It was anticipated that the project would go in commercial production by the current month ie November 2004.
The company is operating from its Head Office and sales office in Islamabad as well as regional sales offices in Karachi and Lahore.
During the half year under review the company's sales increased by 7.6% as compared to last year's corresponding period. But cost came under severe pressure so gross profit drastically reduced by 24.3%. The company posted net profit at Rs 64.52 million registering 42% decline.
At present the share in the company is trading at Rs 71 per share which is more than seven times of the par value. During the last one year highest price of the share reached Rs 90.80 per share.
The company is looking forward to increase its business as the demand in the country is growing steadily. At the same it is expecting to enter in export market.
Its Port Qasim location will facilitate exports. It is also expecting that government will take steps to curb the issue of under invoicing and would rationalise the structure of customs duty.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30 December 31
2004 2003
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Share Capital-Paid-up: 300.00 300.00
Reserves & Profit: 599.32 534.80
Shareholders Equity: 899.32 834.80
L T Debts: 868.75 137.50
Accumulated Compensated Absences: 3.97 2.83
Current Liabilities: 442.84 317.33
Fixed Capital Expenditure: 1,640.33 820.23
L T Deposits: 0.78 0.79
Deferred Taxation: 34.24 25.48
Current Assets: 539.53 445.96
Total Assets: 2,214.88 1,292.46
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Profit & Loss A/c For The
Half Year Ended June 30 2004 2003
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Net Sales: 799.25 742.70
Gross Profit: 157.06 207.45
Operating Profit: 109.70 158.66
Financial (Charges): (6.72) (18.00)
Other Income: 3.15 2.47
Profit Before Taxation: 98.34 134.14
Profit After Taxation: 64.52 111.38
Earning Per Share (Rs): 2.15 3.71
Share Price (Rs) on 3.11.04 71.00 -
Price/Earning Ratio: 33.02 -
Book Value of Share (Rs): 29.98 27.82
Debt/Equity Ratio: 49:51 14:86
Current Ratio: 1.89 1.40
Gross Profit Margin (%): 19.65 27.93
Net Profit Margin (%): 8.69 14.99
R O A (%): 2.19 8.62
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