Gross Profit and operating profit were much lower. Profit before taxation at Rs 9.18 million was reduced to almost one fifth of the preceding year's figure of Rs 45.32 million.
However the current and long term debt to equity ratio continued to reflect its robust financial position.
The high price of the share in the company also shows its strength in the eyes of its investors.
During the year the company has several achievements to its credit. One of the two glass furnaces was rebuilt and successfully put in operations from December 2002.
The company launched new light weight products under the brand name "Nova" in the market.
Second time in the history of the company green container was manufactured and this was acknowledged with appreciation in the beverage industry.
During the year the director injected loan. Also the company availed BMR loan from HBL.
Tariq Glass Industries Limited is a public limited company. It was incorporated in 1979 in the province of Punjab. Its registered office is located 49-Bridge Colony Lahore Cantt.
Its shares are listed on Karachi as well as Lahore Stock Exchanges. At present its share is trading at the price of Rs 30.58 per share which is more than three times of its par value.
During the last 52 weeks the share's market value mode substantial appreciation from Rs 12.90 to Rs 38.70 per share.
The company is principally engaged in the manufacture and sale of glass containers and tableware. Its manufacturing facilities are located at 33 km Lahore Sheikhupura Road.
The capacity of its furnace for glass containers has been rated at 26.6 thousand metric tonnes per annum.
The capacity has been reduced by 24.4% from 35.2 thousand in the preceding year. The furnace for capacity for tableware has been increased to 20.75 thousand from 15.82 thousand metric tonnes in the preceding year.
During the year ended 30th June 2003, (FY 2002-03) the actual production of glass containers was recorded at 17.43 thousand metric tonnes as against 25.62 thousand metric tonnes in the previous year registering 32% decline.
The utilised capacity for the glass container furnace declined to 65.6% as compared to 72.9% in the preceding year.
As regards the production of tableware, the company registered output at 11.05 thousand metric tonnes as against 10.23 thousand metric tonnes in the preceding year. This shows 8.0% increase in the output.
However the utilised capacity was lower as compared to the preceding year's because of enhanced rated capacity.
During the year under review, there was addition in the operating fixed assets to the extent of Rs 79.53 million out of which Rs 63.44 million was the capital outlay for machinery. In addition there was addition in the leased asset to the extent of Rs 5.75 million.
During the year under review, the company availed a fresh loan facility under Balancing Modernisation and Renewal from HBL.
This loan carries mark-up at 12% p.a. (with effect from July 1, 2003, the mark-up has been reduced from 12% to 8% pa) and is repayable in 8 equal instalments commencing from August 2003.
The managing director of the company has also advanced a loan of Rs 33.5 million to meet a part of capital expenditure and other routine expenditures during the tenure of furnace rebuild and natural gas supply interruptions by Sui Northern Gas Pipeline Company Ltd.
It has been reported that due to excess supply of glass bottles the selling price remained under pressure during the year.
In the coming months severe competition is foreseen both with the locally manufactured and imported containers after reduction in the import duties.
The management is conscious of the challenges ahead and would like to give more emphasis on tableware products by improving efficiencies, quality and value addition.
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Performance Statistics (Million Rupees)
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30 June 2003 2002
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Share Capital-Paid-up: 100.00 100.00
Accumulated Profit: 39.79 46.30
Shareholders Equity: 139.79 146.30
L.T Debts: 167.37 136.04
Deferred Liabilities: 18.65 16.56
Current Liabilities: 208.73 230.28
Fixed Assets: 324.56 287.65
Deferred Costs: - 0.97
L.T Deposits: 5.70 7.25
Current Assets: 204.28 233.31
Total Assets: 534.54 529.18
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Sales, Profit & Pay Out
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Sales-Net: 519.05 632.05
Gross Profit: 73.11 116.64
Operating Profit: 25.62 66.95
Financial (Charges): (15.85) (18.13)
(Depreciation): (45.05) (37.67)
Profit Before Taxation: 9.18 45.32
Profit After Taxation: 3.49 35.83
Dividend Cash 10% (2002:12%): 10.00 4.011
Earnings Per Share (Rs): 0.35 3.58
Share Price (Rs) Dated 01.01.2004: 30.50 -
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Financial Ratios
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Price/Earning Ratio: 87.14 -
Book Value Per Share: 13.98 14.63
Price/Book Value Ratio: 2.18 -
Debt/Equity Ratio: 54:45 48:52
Current Ratio: 0.97 1.01
Asset Turn Over Ratio: 0.97 1.19
Days Receivables: 11 15
Days Inventory: 42 31
Gross Profit Margin (%): 14.08 18.45
Net Profit Margin (%): 0.67 5.66
R.O.A (%): 0.65 6.77
R.O.C.E (%): 1.07 11.99
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Plant Capacity & Production Furnaces (0000 - M. Tons)
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A) Containers
Installed Capacity: 26.57 35.16
Production: 17.43 25.62
Capacity Utilisation (%): 65.60 72.86
B) Tableware
Installed Capacity: 20.75 15.82
Production: 11.05 10.23
Utilised Capacity (%): 53.25 64.66
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COMPANY INFORMATION: Chairman & Managing Director: Tariq Baig; Director: Omer Baig; Secretary: Waqar Ullah, FCA; Registered Office: 49-Bridge Colony Lahore Cantt; Factory: 33-KM Lahore-Sheikhupura Road.