Textile Weaving: KOHINOOR WEAVING MILLS LIMITED - Half year ended March 31, 2005

12 Aug, 2005

KWML is one of the constituent members of an industrial group viz Kohinoor Maple Leaf Group whose other affiliates are Kohinoor Textile Mills Ltd, Maple Leaf Cement Factory Ltd. The group had pioneered the textile industry in Pakistan and has been operating successfully since the country's inception in 1947.
Today the Group's core manufacturing activities comprise vertically integrated operations, cement production and power generation.
The Kohinoor Maple Leaf Group was born from trifurcating the Saigol Group in 1976. Kohinoor Weaving Mills Ltd was incorporated as a public limited company on December 21, 1987 and is located at 8th Kilometre, Manga Raiwind Road, District Kasur.
Its shares are quoted on Karachi, Lahore and Islamabad stock exchanges of Pakistan.
KWML is principally engaged in the manufacturing, dyeing, trading of cloth, yarn, hosiery, home furnishing and generation and distribution of electricity.
The company has five distinct business divisions viz, Weaving Division, Dyeing Division, Hosiery Division, Genertek Division, Home Textile Division. During the half year ended March 31, 2005 (HY 2004-05), the company posted net sales at Rs 2305.00 million as compared to Rs 2,330.61 million posted in the same period last year (SPLY) showing marginal decline of 1.1%.
The directors reported that despite unprecedented global competition, the company has been successful in retaining its share in the international market of woven fabrics. The company is thinking to modernise and upgrade its looms to enhance productivity.
The Dyeing Division continued to achieve growth both in sales and margins despite competition and under utilisation of capacity.
As regards Hosiery Division, it had to absorb adverse effect on profitability due to increase in raw material prices along with higher administrative and financial costs. However, increased production capacity and increased marketing activities are likely to improve its contribution to profitability.
The increase in fuel oil prices have led to the reduction of margin in the Genertek (Power) Division. But the company is in the process of commissioning gas turbine generating set. This will generate less expensive electricity.
The Home Textile Division was in the process of trial production. This would increase the profitability of the company by value addition and ensure optimum capacity utilisation of the Weaving Division.
The company posted after tax profit at Rs 8.59 million (HY 2003-04: Rs 65.45 million). The Net Profit of the company decreased due to higher administrative and selling expenses and increased financial charges.



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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 September 30
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2005 2004
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Share Capital-Paid-Up: 330.59 300.54
Reserves & Profit: 1,614.94 1,685.72
Shareholders Equity: 1,945.53 1,986.26
Other L.T. Debts: 1,475.76 1,172.65
Current Liabilities: 3,625.61 2,851.57
Fixed Assets: 3,403.31 2,865.85
L.T. Investments: 9.94 9.14
L.T. Security Deposits: 2.49 2.34
Current Assets: 3,630.16 3,133.15
Total Assets: 7.045.90 6,010.48
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Profit & Loss A/c for the Half Year ended
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March 31 2005 2004
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Sales-net: 2,305.00 2,330.61
Gross Profit: 252.42 246.48
Operating Profit: 113.39 153.44
Other Operating Income: 5.59 8.72
Finance (Cost): (80.14) (52.13)
Profit before Taxation: 31.59 96.21
Profit After Taxation: 8.59 65.45
Earnings Per Share: 0.26 2.18
Share Price (Rs) on 01/08/05: 31.00 -
Price/Earning Ratio: 119.23 -
Book Value of Share (Rs): 58.85 66.09
Debt/Equity Ratio: 43:57 37:63
Current Ratio: 1.00 1.10
Gross Profit Margin (%): 10.93 10.56
Net Profit Margin (%): 0.37 2.81
R.O.A. (%): 0.12 1.09
R.O.E. (%): 0.44 3.30
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COMPANY INFORMATION: Company Information: Chairman: Tariq Saeed Saigol; Chief Executive: Aamir Fayyaz Sheikh; Director: Zamiruddin Azar; Chief Financial Officer: Syed Mohsin Raza Naqvi; Company Secretary: Muhammad Ashraf; Registered Office: 42-Lawrence Road, Lahore; Web Address: www.kmlg.com Factory: 8th Km, Manga Raiwind Road.

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