The closing market value of its share on 25th August 2003 is Rs 102.65 which is more than ten times of the par value.
In fact the highest market value of its share during the last one year was quoted at even higher price of Rs 114.65.
The upsurge in its price started from Rs 30 per share. During the first half of the financial year October 2003-September 2004, the company posted sales in terms of value at Rs 1,872.84 mln (HY 2002-03: Rs 1300.46 mln) registering increase by Rs 572.38 mln ie 44% over the same period last year (SPLY).
Gross profit at Rs 207.69 mln (HY 2002-03: Rs 130.20 mln) and operating profit at Rs 185.36 mln (HY 2002-03: Rs 112.75 mln) increased by 59.5% and 64.4% respectively over SPLY.
But its margins did not increase in the same proportion to sales growth. In the Half Yearly Report under, review the chairman indicated that the company had procured cotton for the full year during the cotton season when prices were high. He further said later on cotton press un-expected declined.
The impact of relatively high procurement price might be also experienced in the remaining half year April-September 2004.
Even then the company's pre-tax profit increased 3 times to Rs 132.76 from Rs 44.86 mln in the SPLY. The tremendous boost in its profitability as been attributed to soaring revenue and reduction in financial charges.
The balance sheet's financial backbone is strong. Its robustness is evident from the excellent solvency, liquidity and profitability ratios.
The auditors in their review made certain observations which have been responded by the directors.
The company continues its BMR and expansion and its was expected that the installation of gas generators would be completed by June-04.
The increase in power generation capacity of the company will make the enterprise more cost efficient.
It is also reported that the management has finalised plans for BMR and expansion of spinning units.
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Performance Statistics (Million Rupees)
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Balance sheet -As At-
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March 31 September 30
2004 2003
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Share Capital-Paid-up: 123.55 123.55
Reserves & Surplus: 503.41 402.69
Shareholders Equity: 626.96 526.24
L.T Debts: 491.81 493.41
Custom Duties: 26.05 27.23
Due to Associated Undertaking: 7.13 7.13
Deferred Income: 0.01 0.02
Deferred Liabilities-Gratuity: 25.48 16.71
Deferred Taxation: 65.50 65.50
Current Liabilities: 1,783.98 1,019.38
Tangible Fixed Assets: 1,208.49 1,218.51
L.T Investments: - -
L.T Loans: 0.91 0.65
L.T Deposits: 4.15 4.20
Current Assets: 1,813.37 932.26
Total Assets: 3,026.92 2,155.62
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Profit & Loss A/c For the
Half Year Ended March 31 2004 2003
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Sales-Net: 1,872.84 1,300.46
Gross Profit: 207.69 130.20
Operating Profit: 185.36 112.75
Other Income: 0.20 0.18
Financial (Charges): 44.52 65.68
Profit Before Taxation: 132.76 44.86
Profit After Taxation: 100.72 37.06
Earnings Per Share (Rs): 8.15 3.00
Share Price (Rs) 25.08.2004: 102.65 -
Price/Earning Ratio: 12.60 -
Book Value of Share (Rs): 50.75 42.59
Debt/Equity Ratio: 44:56 48:52
Current Ratio: 1.01 0.91
Gross Profit Margin (%): 11.09 10.01
Net Profit Margin (%): 5.38 2.84
R O A 3.32 1.71
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COMPANY INFORMATION: Chairman: /Chief Executive: Sh. Naseem Ahmad; Chief Financial Officer: Faizan-ul-Haq; Director: Fazal Ahmad Sheikh; Company Secretary: M.D. Kanwar; Head Office/Registered Office: 1st Floor, International Plaza, Bohra Street, Multan Cantt; Web Address: N.A; Mills .- Fazal Nagar, Jhang Road, Muzaffargarh (Punjab). - Qadirpur Rawan Bypass, Khanewal Road, Multan, Punjab