State Engineering (SE) group of companies has shown good performance during the financial year 2003-2004 as compared to the financial year 2002-03 in respect of production, sales, gross and net profits as well as order book, says a handout issued here on Friday. This has been observed while reviewing the report on audited accounts of the corporation for the financial year ended 30th June 2004.
SE companies earned an overall pre-tax profit of Rs 250.36 million during the year under review as against loss of Rs 131,549 million in the preceding year, which by all standards is a huge achievement when compared with the performance of the group in the past and thus placing the companies back on track to become viable entity.
The report further revealed that sales of SE companies reached Rs 2,367 million as against Rs 1,924 million in the preceding year, showing an increase of 23 percent. Pakistan Machine Tool Factory (PMTF) maintained the lead amongst SE companies by achieving sale of Rs 839 million followed by Heavy Mechanical Complex (HMC) at Rs 804 million.
The performance of Pakistan Engineering Company (PECO) was also commendable as it achieved sale of Rs 457 million which was 72 percent higher than last year. Heavy Electrical Complex (HEC) was the only unit whose sales declined by 13.8 percent whereas Enar Petrotech Services (ENAR) achieved sale of Rs 99.453 million.
SE companies have orders in hand of over Rs 6 billion as of 30.9.2004, which is also a record achievement considering the performance during the last decade. The unit-wise break-up of orders in hands is HMC Rs1, 967 million, PMTF Rs 784 million, PECO Rs 774 million; HEC Rs 311 million and ENAR Rs 87 million.
During the financial year under review, PECO obtained an order of Rs 769 million for manufacturing transmission line towers against Wapda Tender No ADP-19. The distinctive feature of this project is that it is the highest value order in the entire history of the company.
Similarly, HEC was successful in obtaining order of power transformers from Wapda against Tender No ADP-38 in which local and foreign firms took part. With these orders, the capacity utilisation of both the companies would increase substantially.
During 2003-04, HEC acquired ISO 9001-2000 certification, which will enable its product to conform to international quality standards. Another SE company namely PMTF has launched BMR scheme for up-gradation of its facilities to manufacture additional items for motorcycles and motorcars.
The improved performance of SE group of companies has been attributed to the transformation of the overall business strategy by the corporation offering competitive prices.
The surge in order book reflects the revival of customer's confidence in the capabilities of SE companies which has been playing a vital role in indigenous manufacturing of high value-added plant machinery and engineering goods.