Towellers Limited was incorporated in the province of Sindh as a private limited company in May 1973 and after 21 years it was converted into public limited company. Its registered office is in Federal B Area Karachi and the URL of its website is www.towellers.com.
Its manufacturing facilities are located at three places viz one in Balochistan at Hub Industrial Estate whereas the other two factories are in Karachi and Taluka Thana Bola Khan both in Sindh. The main business of the company is manufacturing and export of textile made ups, garments and towels.
The company's previous year's Annual Report as well as the present nine months report informed that it had launched an expansion programme to upgrade the quality and to house all its manufacturing facilities under one roof. The implementation of this project will enable the company to have better controls and to optimise and cut down on its overhead in order to achieve a better financial result and higher profits. The project is nearing completion and it is anticipated that the trial production will start in June 2006, which is the present month.
The company is listed on the Karachi and Lahore stock exchanges and at present Towellers Ltd's shares are trading at Rs 25 per share which is 2.5 times of the par value. During the last one year, the market value of the share ranged between Rs 25 and Rs 33.95 per share.
As regards profit distribution the company had declared dividends in four years out of last six years except for last year 2005 as well as 2004.
During July 2005-March 2006, the company posted sales amounted to Rs 1,541.14 million as against Rs 1,390.34 million posted in the same period last year (SPLY) showing 10.8% increase. Last year's audited Annual Report (nine months) had shown sales at Rs 1,384.21 million out of which export sales were 94% of company's sales.
The company posted net profit at Rs 4.50 million during the period (9 months) under review as against Rs 5.13 million posted in SPLY. According to the Directors Report, the period under review was very tough because; cotton yarn prices went up drastically; shipping companies raised freight rates in the period by over 20%; fuel, gas and electricity charges also went up; the prices of dyes and chemicals increased; facing tough competition from other exporting countries like Bangladesh, India and China etc.
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Balance Sheet (Unaudited) ----As At---
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 170.00 170.00
Reserves & Surplus: 369.30 362.99
Shareholders Equity: 539.30 532.99
Surplus on Revaluation
of Fixed Assets: 129.66 131.47
L.T. Debts: 171.00 244.52
Deferred Liabilities-Gratuity: 46.28 54.49
Current Liabilities: 1,355.95 1,155.35
Fixed Assets: 1,030.09 850.05
L.T. Loan: 7.37 11.21
Current Assets: 1,204.77 1,257.56
Total Assets: 2,242.23 2,118.82
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Profit & Loss A/c (Unaudited) for
Nine Months Ended March 31
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2006 2005
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Sales-Net: 1,541.14 1,390.34
Gross Profit: 240.97 228.31
Financial (Cost): (28.44) (16.13)
Other Income: 0.31 0.26
Profit Before Taxation: 19.94 15.29
Profit After Taxation: 4.50 5.13
Earnings Per Share (Rs): 0.26 0.30
Share Price (Rs) Dated 12-06-06: 25.00 -
Price/Earning Ratio: 96.15 -
Book Value of Share (Rs): 31.72 31.35
Debt/Equity Ratio: 20:80 27:73
Current Ratio: 0.83 1.09
Gross Profit Margin (%): 15.63 16.42
Net Profit Margin (%): 0.29 0.37
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