The latest update about the company's financials has been published in the 3rd quarterly report of the current financial year 2005-06. The report also gives account of nine months' cumulative result which is under review here as 9M, 2005-06.
Last year's Annual Report 2005 has also been discussed. In the appendix comes the performance statistics of last financial year ended June 2005 (FY 2004-05). Last year the company had posted highest net turnover. By booking net profit (although wafer thin) it had turned the table against previous year's (FY 2003-04) loss.
During 9M 2005-06, of current financial year, the company posted net sales at Rs 815.20 million (9M 2004-05: Rs 703.8 million) and pretax profit of Rs 44.94 million (9M 2004-05: Rs 17.85 million) registering robust growth of 15.8% and 80.7% respectively.
The directors reasoned that the improvement in profitability was mainly because of cost savings efficient plant operation and better marketing strategies. The share of the company is trading at Rs 15.30 per share which is more than 3 times of the par value of Rs 5 per share. The company has bypassed annual dividends since FY 2002-03.
In the Annual Report 2005 the external auditors had made observation about a law suit. The directors have recorded their response in the Annual Report 2005 and 3rd Quarter Report of 2005-06.
Dynea Pakistan Limited was incorporated in the province of Sindh in June 1982 having its registered office situated in Siddiqsons Tower, Sharea Faisal Karachi. Its other associated undertakings are Pakistan Papersack Corporation Limited, Thal Limited and Habib Insurance Company Ltd these undertakings own 5.1% of the company's total 18.872 million paid-up shares of Rs 5 each.
The largest chunk of its stock is held by 10 foreign investors which is 45.9% of its stock and out of this shareholding, Dynea of Finland holds 33.2% of the stock. In the seven member Board of Directors, there are three nominee directors of Dynea of Finland and at the apex of the Board the Dynea of Finland nominee Per Haga sits as a chairman.
After them the largest number of shares were with NBP Trustee Wing with 19.2% of the company's stock. The aggregate share of the 1338 individual shareholders works out to 24.4% while the company directors and family members held only 4% of the stock.
The company is engaged in the manufacture and sale of urea/melamine, fomaldehyde and aminoplast compound. The importance of its various products can be assessed from its segment reporting. In this case one segment is distinguishable from other as one product is under one control and returns and risks are different from others. Its segment reports comprise three divisions namely resin division; aminoplast division, special aminoplast division.
During the last financial year ended June 30, 2005 (FY 2004-05) the company's net turnover was in the sum of Rs 974.48 million and out of that the largest contribution of Rs 467.92 million or 48% was made by aminoplast division. Resin division's turnover amounted to Rs 365.34 million which was 37.5% of the total net turnover.
Remaining 14.5% contribution was made by special aminoplast division. Its manufacturing facilities are located in two provinces. One factory is located at Hub Chowki in Balochistan province and the other factory is situated at Industrial Estate Gadoon Amazai NWFP. During the last financial year (FY 2004-05) the company made additions in fixed assets at the capital outlay of Rs 15.7 million out of which Rs 7 million was booked for plant and machinery, Rs 4.5 million in building and Rs 268 thousand for computer and accessories.
During the last financial year 2004-05, the company's net turnover was the highest and increased over last year's 824.79 million by 18.1%. Gross profit was in the sum of Rs 109.46 million which shows 123% increase over preceding year's (FY 2003-04) figure of Rs 49.01 million. Down the profit ladder the company sustained the upward trend despite higher distribution cost plus administrative expenses.
The company's pretax profit was recorded at 9.36 million turning the table against the pretax loss of Rs 11.75 million of previous year. At the bottom line, the net profit after tax was wafer thin at Rs 1.11 million.
The directors lamented about record increase in cost of methanol which is basic raw material of resin manufacturing. Due to tough competition, the increase in cost could not be passed onto customers. They were also bitter about continued unethical competition from Chinese exporters.
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Performance Statistics (Million Rupees)
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30 June 2005 2004
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Rs 5/-Share Capital-Paid-up: 94.36 94.36
Revenue: 162.08 160.97
Shareholders Equity: 256.44 255.33
L.T. Debts: - 10.72
Deferred Liability: 3.25 10.01
Current Liabilities: 277.81 254.56
Fixed Assets: 174.91 182.30
L.T. Loans: 1.30 4.16
L.T. Deposits: 2.28 2.32
Deferred Tax Assets: 2.98 12.40
Current Assets: 356.03 329.44
Total Assets: 537.50 530.62
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Sales, Profit & Pay Out
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Turnover: 974.48 824.79
Gross Profit: 109.46 49.01
Other Operating Income: 3.68 4.81
Finance (Cost): (11.59) (8.53)
(Depreciation): (17.79) (18.96)
Profit/(Loss) Before Taxation: 9.36 (11.75)
Profit/(Loss) After Taxation: 1.11 (0.88)
Earning/(Loss) Per 5-Rupees Share (Rs):0.06 (0.05)
Dividend: - -
5 Rupee Share Price (Rs) on 28-07/06: 15.30 -
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Financial Ratios
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Price/Earning Ratio: 255 -
Book Value Per Share: 13.59 13.53
Price/Book Value Ratio: 1.13 -
Debt/Equity Ratio: 0:100 4:96
Current Ratio: 1.28 1.29
Asset Turn Over Ratio: 1.81 1.55
Days Receivables: 61 69
Days Inventory: 58 56
Gross Profit Margin (%): 11.23 5.94
Net Profit Margin (%): 0.11 (0.11)
R.O.A. (%): 0.21 (0.17)
R.O.C.E. (%): 0.42 (0.32)
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Capacity & Production (000' Metric Tons)
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A) Resin Division
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i) Urea/Melamine Formaldehyde
Rated Capacity Per Annum: 34.00 34.00
Actual Production: 29.10 26.43
Capacity Utilization (%): 85.59 77.73
ii) Formaldehyde
Rated Capacity Per Annum: 39.00 39.00
Actual Production: 29.36 29.41
Capacity Utilization (%): 75.28 75.41
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B) Aminoplast Division
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i) Aminoplast Compound
Rated Capacity Per Annum: 8.00 8.00
Actual Production: 9.93 9.01
Capacity Utilization (%): 124.12 112.62
ii) Special Aminoplast Compound
Rated Capacity Per Annum: 2.00 2.00
Actual Production: 3.35 2.55
Capacity Utilization (%): 167.50 127.50
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