The financial health of the balance sheet is robust as evident from break-up value of the share, current ratio and debt to equity ratio.
The robustness is also visible from the fact that despite a net debt servicing charge of Rs 286.2 million and capital expenditures of Rs 109.3 million, the company closed the financial year with a cash balance of Rs 288.6 million.
In recognition of top class financial performance, the company once again won the Karachi Stock Exchange's "Top 25 Companies Award" for the year 2001 and was selected for this Award for the year 2002.
The company's substantial capital outlay in carbon dioxide project is the manifestation of corporate strategy to diversify in new products and new market sectors.
The chairman aptly said, "the investment represents a significant strategic diversification of the company and underpins profitable growth for the medium as well as the long term."
BOC Pakistan Limited was incorporated in Pakistan under the Companies Act, 1913 (now Companies Ordinance 1984), as a private limited company in 1949 and converted into public limited company in 1958.
BOC Pakistan Limited holding company is The BOC Group plc. which is incorporated in the UK. On September, 30, 2003, the holding company held 15.02 million paid ordinary shares out of its total 25.04 million shares and this shareholding works out to 60% of BOC Pakistan's stock.
Its shares are quoted on all stock exchanges of the country. During the last 52 weeks the BOC Pakistan share's market value increased to Rs 181.65 from Rs 110 per share.
The company's registered office is located at West Wharf Karachi. It is principally engaged in the manufacture of industrial and medical gasses, welding electrodes and marketing of medical equipment.
Its long-term strategy is embedded in its vision statement "BOCPL is the first choice of its customers with clear market leadership in the industrial gases/healthcare businesses and its other related fields."
As a corporate strategy the company continuously spends on fixed capital expenditure.
During the year under review the company spent Rs 109.3 million on fixed capital expenditure primarily on the ongoing carbon dioxide project.
It continues to maintain leadership position in its traditional business sectors, and is moving forward into a new promising sector with the deployment of the carbon dioxide investment for which all required machinery is at the site and plant erection is proceeding at an accelerated pace.
Product availability is expected is early part of next year enabling entry into a wide host market sectors, and as such the investment represents a significant strategic diversification of the company and underpins profitable growth for the medium as well as the long term.
The fixed capital expenditure amount of the year, is the single largest amount of last ten years after the amount of 1997 expenditure.
Despite a net debt servicing charge of Rs 286.2 million and capital expenditures of Rs 109.3 million the company closed the financial year with a cash balance of Rs 288.6 million and the balance sheet continues to be healthy.
The robustness of the financial health is also evident from its current ratio, long term debt to equity ratio and break-up value of its share.
The break-up value of the share at Rs 30.42 per share and the market value of the share at Rs 169 per share carry very high premium over its par value of Rs 10.
Turnover reached Rs 1,386.23 million whilst net profit increased to Rs 363.96 million. Financing cost and tax charge went down substantially. As a result the net profit of the year registered robust growth of 20.6% over last financial year.
This is all time record for the enterprise. The completion of complex in Rawalpindi land sale at Rs 50 million made a major contribution to the profit. The directors recommended final dividend at 60% making the total for the year at 160%.
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Performance Statistics (Million Rupees)
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30 September 2003 2002
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Share Capital-Paid-up: 250.39 250.39
Revenue Reserves: 511.39 447.89
Shareholders Equity: 761.78 698.28
L.T Debts: 238.00 424.00
Cylinder Deposits: 69.66 66.89
Deferred Liabilities: 215.74 237.16
Current Liabilities & Provisions: 548.27 503.93
Fixed Assets: 1,276.62 1,290.28
L.T Loans & Advances: 6.94 7.73
L.T Deposits & Prepayments: 9.22 8.70
Current Assets: 540.67 623.55
Total Assets: 1,833.45 1,930.26
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Sales, Profit & Pay Out
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Sales: 1,386.23 1,358.96
Trading Profit: 585.11 609.79
Operating Profit: 376.67 413.72
Other Income: 73.65 14.92
Financial (Charges) Net: (21.90) (30.12)
(Depreciation): (122.50) (125.01)
Profit Before Taxation: 403.59 368.90
Profit After Taxation: 363.96 301.71
Cash Dividend @ Rs 12
(2000: Rs 17)/Share: 300.46 425.66
Earnings Per Share (Rs): 14.54 12.05
Share Price (Rs) Dated 01.01.04: 169.00 -
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Financial Ratios
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Price/Earning Ratio: 11.62 -
Book Value Per Share: 30.42 27.88
Price/Book Value Ratio: 5.5 -
Debt/Equity Ratio: 24:76 38:62
Current Ratio: 0.99 1.24
Asset Turn Over Ratio: 0.76 0.70
Days Receivables: 20 18
Days Inventory: 24 24
Gross Profit Margin (%): 42.20 44.87
Net Profit Margin (%): 26.25 22.20
R.O.A (%): 19.85 15.63
R.O.C.E (%): 28.32 21.15
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A) Million Cubic Meters
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Oxygen/Nitrogen: 38.246 40.550
Hydrogen: 1.187 1.139
Dissolved Acetylene: 0.131 0.138
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B) Million Gallons
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Nitrous Oxide: 31.603 35.776
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C) Welding Electrodes
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(Metric Tons): 1,477 1,381
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COMPANY INFORMATION: Chairman: Munawar Hamid OBE; M.D. & Chief Executive: Javaid Anwar; Company Secretary: M. Ashraf Bawany; Registered Office: West Wharf Karachi 74000.