Jute: THAL LIMITED - Nine Months Ended March 31, 2005

13 Jul, 2005

The company was incorporated on January 31, 1966 as a public limited company by shares. It is engaged in the manufacture of jute goods, assembly and of auto air-conditioners, wire harness and heaters blowers.
The jute operation is at Muzaffargarh (Punjab) and engineering operation at Karachi (Sindh).
The registered office of the company is situated at 4th Floor, Siddiq Sons Tower, 3-Jinnah Co-op Housing Society Block 7/8 Sharah-e-Faisal, Karachi. The company is a part of a large conglomerate "House of Habibs" whose diversified interests are in automobile, building and construction, chemicals, financial services, multimedia, packaging, plastic and tractors.
The under reference 3rd quarter of Thal Limited reports that the matter of merger with Pakistan Papersack Corporation and Khyber (Papers) Private Ltd with Thal Limited was under active consideration of the Board and a special meeting of the Board was scheduled to be held in May 2005 to finalise it.
During the 3rd quarter of FY 2004-05, Thal Limited received Corporate Excellence Award in the Miscellaneous Sector from the Management Association of Pakistan (MAP) for the year 2003. During the nine months of the financial year 2004-05 (9M 2004-05) the company's total assets increased to Rs 1.655 billion from Rs 1.205 billion in the same period last year (SPLY) registering expansion in the asset base by Rs 450 million which is commendable. The company has relatively small paid-up capital of Rs 69.57 million comprising 13.914 million paid-up shares of Rs 5 each. But shareholders equity went up to Rs 1.046 billion which works out to more than 15 times of the paid up capital.
Total turnover of Thal Limited was recorded at Rs 2.397 billion (SPLY: 1.924 billion) showing impressive growth by 25%.
Sales turnover of Engineering Division increased to Rs 1.767 billion (SPLY: Rs 1.424 billion) by 24%, whereas the sales turnover of Jute Division increased by 26% to Rs 630 million (SPLY: Rs 500 million). Gross margin of Engineering Division improved, but Jute Division gross margin was lower because of the increase in the cost of raw jute and freight charges while there was decline in selling prices of jute goods.
Thal Limited posted net profit after taxation at Rs 261.62 million which works out to EPS of Rs 18.80 per share (9M 2003-04: Rs 15.81). Thal Ltd share has been quoted at Rs 105.50 per share of Rs 5.



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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 69.57 69.57
Reserves & Profit: 976.63 801.50
Shareholders Equity: 1,046.20 871.07
L.T. Debts: 20.29 4.46
Deferred Taxation: 9.76 10.93
Current Liabilities: 578.34 318.58
Fixed Assets: 144.47 138.00
Investments Property: 1.11 1.12
L.T. Investments: 35.39 34.92
L.T. Loans, Advances, Deposits: 2.01 1.81
Current Assets: 1,471.61 1,029.19
Total Assets: 1,654.59 1,205.04
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Profit & Loss A/c for Nine Months Ended
March 31 2005 2004
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Turnover: 2,397.42 1,923.75
Gross Profit: 460.28 400.03
Other Income: 25.06 19.18
Profit on Trading: 7.32 4.45
Operating Profit: 425.82 366.38
Financial (Charges): (11.12) (5.85)
Profit Before Taxation: 386.37 335.71
Profit After Taxation: 261.62 219.98
Earnings Per 5-Rupee Share (Rs): 18.80 15.81
Share Price (Rs) on 04-07-05: 105.50 -
Price/Earning Ratio: 5.61 -
Book Value of Share (Rs): 75.19 62.61
Debt/Equity Ratio: 2:98 0:100
Current Ratio: 2.54 3.23
Gross Profit Margin (%): 19.20 20.79
Net Profit Margin (%): 10.91 11.43
R.O.A. (%): 15.81 18.25
R.O.E. (%): 25.01 25.25
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COMPANY INFORMATION: Chairman: Rafiq M. Habib; Chief Executive: Sohail P. Ahmad; Executive Director: Muhammad Jamil Hussain; Company Secretary & Financial Officer: Ali Asghar Moten; Registered Office: 4th Floor, Saddiqsons Tower, 3-Jinnah co-operating Housing Society Block 7/8, Sharea Faisal Karachi; Web Address: www.thalengg.com.pk Sales & Service Centre: 14, Banglore Town, Sharea Faisal Karachi; Mills/Factory: D.G. Khan Muzaffargarh (Punjab); Engineering Division: Plot No 1 & 2, Sector 22 Korangi Industrial Area Karachi.

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