The company's stature in the corporate world has enhanced due to several milestone events. Its exports of jute goods doubled and it became the first jute factory in the world to attain ISO 14001:1996 Certification. It has signed with Siemens Pakistan to install mySAP(tm) in both its Engineering and Jute Divisions. The company's revenue at Rs 2.677 billion increased by 27.6% over the figures of last fiscal year and the highest ever in its history.
The Board of Directors of Thal Limited has approved in principle the proposed merger of Pakistan Papersack, Corporation and Khyber Papers (Private) Limited with Thal Limited. Its Engineering Division sales have registered high growth due to derived demand generated from the upbeat automobile assembling industry. The company posted net profit at Rs 445.67 million showing 12.9% increase and declared dividend @125% (2002-03: 125%).
Thal Limited (formerly Thal Jute Mills Limited) was incorporated as a public limited company in January 1966 in the province of Sindh. The 38th Annual Report of the company for the FY 2003-04, informs about lateral amalgamation of three associated companies. It is the age of mega companies to avail synergies of merger and to enrich its stakeholders through cost efficiencies and enhanced market share.
The Board of Directors of Thal Limited has approved in principle the proposed merger of Pakistan Papersack Corporation Ltd and Khyber Papers (Private) Ltd with Thal Ltd in this respect necessary legal and other formalities have been initiated.
The company's shares are quoted on the Karachi and Lahore Stock Exchanges. On 3rd November 2004, the closing price of the share was quoted at Rs 97.50 per share which is nearly 20 times of the par value of Rs 5 per share. During the last one year the price of Thal Limited shares has gone very high from Rs 73.10 per share to Rs 140 per share.
In the pattern of shareholding the directors and their spouses etc hold 6.19% stock of the company Eleven foreign investors are holding 32.27% of the company. Associated undertakings held 3.35% of the company. Its 3163 individual shareholders are holding 35.68 percent stock of the company.
The company is engaged in the manufacture of jute goods and assembly and manufacture of engineering goods consisting of auto airconditoners, wire harness and heater blowers. The jute operation is at Muzaffargarh and engineering operating at Karachi.
Its jute division has received ISO 14001:1996 Certification in July 2004, for Environment Management System and this is the first ISO 14001 Certificate Jute Mill in the world. This division was awarded and Export Merit Trophy for 2nd consecutive year for the export of jute goods worth Rs 130 million by the Federation of Pakistan Chambers of Commerce and Industry.
In the application of information technology the company has taken very important step. During the year the company signed an agreement with Siemens Pakistan Engineering Company Ltd to install enterprise resource planning (ERP) solution mySAP(tm) in both the divisions ie Engineering Division and Jute Division at a cost of Rs 30 million of which Rs 13.615 million has been spent during the year under review. The information system is expected to be operational by the middle of next fiscal year.
During the year under review, the company posted revenue at Rs 2,677.56 million as against Rs 2,097.29 million posted in the preceding year showing 27.67% growth sales of jute goods amounted to Rs 665.63 million (2002-03: Rs 936.38 million) showed 28.91% decline and constituted 24.9% of total revenue.
The decline in the revenue in jute division has been attributed to less buying of grain sacks by the government on account of shortfall of wheat production. However its jute goods exports more than doubled
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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June 30
2004 2003
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Share Capital-Paid-Up: 69.57 69.57
Reserves & Surplus: 735.42 499.98
Shareholders Equity: 804.99 569.55
L T Debts: 4.46 7.24
Deferred Liabilities: 10.93 20.98
Current Liabilities: 514.89 425.90
Tangible Fixed Assets: 139.12 144.87
L T Investments: 34.92 26.86
L T Loans, Advances & Deposits: 1.81 3.35
Current Assets: 1,158.62 848.59
Total Assets: 1,334.47 1,023.67
Sales, Profit & Pay Out:
Sales: 2,677.56 2,097.29
Gross Profit (Manufacturing): 525.84 488.86
Profit & Trading Activities: 6.67 5.19
Gross Profit: 532.51 494.05
Operating Profit: 457.17 421.02
Other Income: 27.53 13.04
Financial (Charges): (8.22) (10.03)
(Depreciation): (32.38) (35.96)
Profit Before Taxation: 445.67 394.70
Profit After Taxation: 314.33 265.18
Dividend Cash @125%: 86.96 86.96
Earnings Per 5-Rupee Share (Rs): 22.59 19.06
Share Price (Rs) Dated 3-11-2004: 97.50 -
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Financial Ratios
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Price/Earning Ratio: 4.32 -
Book Value Per Share: 57.85 40.93
Price/Book Value Ratio: 1.68 -
Debt/Equity Ratio: 1:99 1:99
Current Ratio: 2.25 1.99
Asset Turnover Ratio: 2.01 2.05
Days Receivables: 25 19
Days Inventory: 124 105
Gross Profit Margin (%): 19.89 23.56
Net Profit Margin (%): 11.73 12.64
R O A (%): 23.55 25.90
R O C E (%): 38.32 44.36
Plant Production
A) 000 Units
Auto Airconditioners: 43.61 28.51
Wire Harness: 40.01 21.28
Heat Blowers: 19.57 5.08
B) Jute 000 Tons: 22.29 24.69
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