The year under review has been highly successful for this company which claims to be one of the constituent members of Ghani Group - an interest free corporate entity. During the year under review it has done massive investment in BMR and its production registered impressive growth.
The company remains well entrenched as a socially responsible corporate citizen caring for its workforce and making value addition in the investments of prime stakeholders - its shareholders. It has a robust financial backbone which is evidenced from its liquidity and solvency ratios as well as high premium carrying break up value of share.
The market value of its share is the highest priced share in its Glass and Ceramics sector. The company posted sales in the sum of Rs 1.389 billion (2004-05: Rs 0.818 billion) and Gross Profit at Rs 359.18 million (2004-05: Rs 280.28 million) showing admirable growth of 70% and 28% respectively. But Net Profit at Rs 199.84 million was a little more than last year's due to high provisioning of tax.
Ghani Glass Limited is a public company incorporated in the province of Punjab having its registered and head offices situated in Ghani Complex, 49 Shadman 1, Lahore 54000. Here its Marketing Office (Punjab) is also located.
The shares of the company are quoted on Karachi and Lahore Stock Exchanges. On 6th December 2005, the closing price of the share was quoted at Rs 66 per share which is more than six times of the par value. The other glass company - Tariq Glass share's market value is the second highest in its sector but not close to Ghani Glass. Tariq Glass share's market value is Rs 30.60 per share. During the last one year market value of Ghani Glass share remained within a wide and high price band of Rs 60.10 and 84 per share.
As regards its status as a socially responsible corporate citizen, the company holds admirable outlook. The company provides free food to all staff at plants, marketing office and head office. Further facilities ie opportunity for learning Deen during working hours, medical facilities for workers, loan without interest, filtered drinking water and first aid kits are also available in the company.
Five employees of the company are also performing Hajj every year on the expense of the company selected through balloting.
The other evidence of its being socially responsible enterprise is its regular and attractive dividend distributions to its prime stakeholders - shareholders. According to Investor Information. Six years at glance "the company did not skip dividend during the six years." Dividend payout peaked at Rs 6 per share while the lowest payout was Rs 3.50 per share.
The Annual Report under review shows at it cover "Ghani Group Interest Free Institution." The cover is also labelled: 1st ISO 9002 Certified Glass Plant of Pakistan.
The company is engaged in the business of manufacturing and sale of glass containers and sheet glass of different types. Its manufacturing facilities are diversified at two locations. GG Plant-I & Regional Marketing Office are located in Tehsil Haripur NWFP, GG Plant II H-15 Landhi Industrial Area Karachi. During the year under review its installed production capacity expanded to 132 thousand tonnes from 63.77 thousand tonnes in the previous FY 2003-04. Actual production was recorded 78.9 thousand tonnes registering 105.1% increase over the preceding year's 38.46 thousand tonnes. However, the company could utilize only 60% capacity.
This would mean that in order to avail maximum economies of scale the company has to strive for higher productivity. Fortunately, the leadership in the company has already targeted 100 thousand tonnes output for the current year (2005-06).
During the year under review, the company invested Rs 191 million on BMR and acquisition of new assets. Resultantly now all the furnaces of the company are new and working on full capacity.
During the year, the company has also invested Rs 50 million in the equity of Ghani Float Glass Limited which is the first float glass plant in the country where commercial production has already started in July 2005. This diversification in investment will pay dividend for year to come.
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Performance Statistics (Million Rupees)
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30th June 2005 2004
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Share Capital-Paid-up: 302.08 241.67
Reserves & Surplus: 710.33 595.10
Shareholders Equity: 1,012.41 836.77
L.T. Ijara Financing: 44.25 49.20
Deferred Taxation: 14.76 -
Current Liabilities: 270.04 210.38
Fixed Assets: 518.80 471.31
Goodwill (Intangible): (40.15) (60.07)
L.T. Investment: 50.00 -
L.T. Loans: 24.65 -
L.T. Deposits: 3.33 4.85
Current Assets: 784.83 680.26
Total Assets: 1,341.46 1,096.35
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Sales, Profit & Pay Out
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Sales-Net: 1,389.11 817.74
Gross Profit: 359.18 280.28
Operating Profit: 296.25 234.52
Other Income: 0.13 -
Finance & Other (Charges): 9.27 0.48
(Depreciation): 50.30 23.75
Amortization of Goodwill: 19.92 9.16
Profit Before Taxation: 292.92 231.05
Profit After Taxation: 199.80 199.34
Earnings Per Share (Rs): 6.61 7.12
Dividend Cash 2004: 10% (2003: 15%): 24.17 22.43
Dividend Stock @5% (2004: 25%): 15.10 60.42
Share Price (Rs) on 6/12/05: 66.00 -
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Financial Ratios
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Price/Earning Ratios: 9.98 -
Book Value Per Share: 33.51 -
Price/Book Value Ratio: 1.97 -
Debt/Equity Ratio: 4:96 6:94
Current Ratio: 2.91 3.23
Asset Turn Over Ratio: 1.04 0.74
Days Receivables: 65 80
Days Inventory: 91 160
Gross Profit Margin (%): 25.86 34.27
Net Profit Margin (%): 14.38 24.37
R.O.A (%): 14.89 18.18
R.O.C.E (%): 18.64 22.50
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Plant Capacity & Production (000' Tons)
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A) Capacity: 132.00 63.77
Actual Production: 78.90 38.46
Capacity Utilization (%): 59.77 60.31
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