During HY 2003-04, the period under review the company's net sales in terms of value amounted to Rs 1.127 bln (HY 2002-03: Rs 0.964 bln) registering 17% growth over the sales of SPLY.
Export sales accounted for 68% of gross sales and grew @ 36% much more faster than the growth in sales.
But margins were under pressure as GP margin eroded by 3.4 percentage points to 4.20% from 7.60% in the SPLY.
Resultantly, gross profit marked negative growth as it declined from Rs 73.27 mln to Rs 47.39 mln during the first half of the financial year 2003-04.
In this case the reduction in GP is 35.3%. Operating profit was further down at 56.5% although financial charges were lower by Rs 6.15 mln.
From Chief Executive of Fazal Textile Mills, Sohail M. Yunus report appears that the procurement strategy could not predict the opportune time of cotton purchased he stated, "decrease in gross profit is due to unparalleled price hike which raised to all time record to Rs 3,500 per maund where as the prices of yarn did not increase in the same ratio".
In this case also financial charges were substantial reduced. The company's earning per share (EPS) suffered sharp decline to Rs 1.92 from 4.07 in the SPLY. The share in the company is trading at Rs 7.10 per share.
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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: 61.87 61.87
Reserves & Surplus: 601.26 589.39
Shareholders Equity: 663.13 651.26
Deferred Liabilities-Gratuity: 10.34 10.02
Deferred Taxation: 67.85 66.16
Current Liabilities: 1,317.65 381.28
Fixed Assets: 611.37 580.14
L.T Deposits: 0.58 0.53
Current Assets: 1,447.02 528.055
Total Assets: 2,058.97 1,108.72
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Profit & Loss A/c For the
Half Year Ended March 31 2004 2003
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Sales (Net): 1,126.99 963.64
Gross Profit: 47.39 73.27
Financial (Charges): 7.81 13.96
Operating Profit: 17.17 39.49
Other Income: 1.04 0.15
Profit Before Taxation: 17.16 36.76
Profit After Taxation: 11.87 25.15
Earnings Per Share (Rs): 1.92 4.07
Share Price (Rs) 25.08.2004: 7.10 -
Price/Earning Ratio: 3.70 -
Book Value of Share (Rs): 107.18 105.26
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.10 0.91
Gross Profit Margin (%): 4.20 7.60
Net Profit Margin (%): 1.05 2.60
R.O.A: 0.58 2.27
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COMPANY INFORMATION: Chairman: A. Razzak A. Aziz; Chief Executive: Sohail M. Yunus; Director: M. Yunus A. Aziz; Company Secretary & Chief Financial Officer: Toufique Yusuf; Registered Office & Mills: LA-2/B, Block No 21 Rashid Minhas Road, Federal 'B' Area, Karachi; Web Address: www.fazaltextile.com