The directors intend to further invest in plant and machinery for removal of bottlenecks in expansion, modernisation and upgradation of the manufacturing facilities during the next financial year to achieve desired synergies.
They pointed out that PCL carries forward a healthy order book into the next financial year and would continue to maintain an aggressive stance towards its market share, as it did during the current year. The company has always envisioned highly innovative set up in technology which is its competitive edge. PCL was one of the first few companies in Pakistan to be certified ISO 9001:2000. Its LV (low voltage) and MV (medium voltage) cables have been fully type tested by KEMA-Holland in accordance with IEC 502. However PCL faces rising cost of raw material and financial costs.
Pakistan Cables Limited (PCL) was incorporated in Pakistan as a private limited company on April 22, 1953 and in 1955 it was converted into a public limited company in which year it also obtained a listing on the Karachi Stock Exchange.
The company is engaged in the manufacturing of copper rods, wires, cables and conductors and aluminium extrusion profits. The registered office of the company and factory are located at B/21 SITE Karachi. The PCL net work comprises Head Office at Karachi, Regional Office at Lahore, Branch offices at Multan, Quetta, Rawalpindi, Abbotabad and Peshawar a several distribution/dealer points across the country spreading from Karachi in the South and Muzaffarabad in the north.
In the pattern of shareholding dated June 30, 2005. The company's directors etc's aggregate shareholding figures out to 31.1% of the company's total 5.85 million paid up shares of Rs 10 each. In addition its 1,101 individual investors owned 39.66% of the company's stock.
Among the institutional shareholders NBP Trustee Deptt owned 16.64% and 8 banks and financial institutions held 11.07% of the company's stock.
Its strong financial backbone and growing sales and profitability has strengthened the confidence of the shareholders resulting in rising trend in the market value of its share. During the last one year the price of the PCL share trended upward from Rs 163 to Rs 262 per share.
The seven year Key Financial Data appended with the Report shows that even the lowest price in 2001-02 was also close to double of the par value. On October 10, 2005, the closing quotation of the share was recorded at Rs 191 per share which is 19 times of the par value.
One of the main reason of pricing the share very high is its excellent profit distribution profile as during the last seven years it has never skipped any dividend. Moreover, the payouts have been also very attractive. Since the last three years its dividend payouts were either Rs 10 per share or close to that. For the year under review the dividend payout has been recommended @Rs 9.83 per 10-rupee share as compared to Rs 10 per share in the preceding year FY 2003-04 and the year before in FY 2002-03 the pay out was 9.5%.
In the operating results, the company has scaled new heights. During the year under review, the company posted net sales at Rs 2.019 billion crossing the Rs 2 billion threshold and the sales figure is the record highest in the PCL's career. The growth is phenomenal as only in the preceding year the company had generated sales revenue at Rs 1.281 billion crossing the rupees one billion mark.
The company's Director's Report has been jointly signed by the Chairman Towfiq H. Chinoy and Kamal A. Chinoy Chief Executive.
Their report indicates the reason of the impressive performance. This increase in sale has been partially fed by rising raw material prices. However, the increase in demand was a big factor and with the benefit of the capital expenditure made during the year, the company was able to process greater volumes. Moreover the company continued its aggressive marketing stance leading to a growth in market share.
The main growth was in the wire and cable and across all sectors of the business. However, greater growth was in the projects/commercial segment as the company capitalised on rising demand from the industrial sector particularly from the continuing investment in BMR and expansion in the textile industry.
During the year the company made additions in the fixed assets at the capital outlay of Rs 124.5 million.
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Performance Statistics (Mln Rs)
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30th June 2005 2004
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Share Capital-Paid-up: 58.53 39.02
Reserves & Surplus: 227.73 161.11
Shareholders Equity: 286.26 200.13
Surplus on Revaluation of Fixed Assets-Net of Tax: 549.42 -
Deferred Liability for Staff Gratuity: 13.50 13.67
Other L.T. Employees Benefits: 7.85 7.55
Deferred Tax Liability-Net: 25.01 -
Current Liabilities: 930.58 611.69
Fixed Assets: 756.62 75.06
L.T. Investments: 9.11 9.11
L.T. Loans & Advances: 1.97 1.27
L.T. Security Deposits: 2.21 1.56
Deferred Tax Assets-Net: - 16.28
Current Assets: 1,042.71 729.76
Total Assets: 1,812.62 833.04
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Sales, Profit & Pay Out
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Net Sales: 2,019.31 1,281.15
Gross Profit: 319.48 185.54
Other Operating Income: 8.56 8.74
Operating Profit: 207.15 107.91
Finance (Cost): (36.89) (16.59)
(Depreciation): (17.31) (13.10)
Profit Before Taxation: 170.27 91.32
Profit After Taxation: 112.47 62.52
Earning Per Share (Rs): 19.21 10.68
Dividend Cash 65% (2004: @50%): 38.04 19.51
Dividend Bonus Stock @ 33.33% (2004 @ 50%): 19.51 19.51
Share Price (Rs) on 10-10-05: 191.00 -
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Financial Ratios
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Price/Earning Ratio: 9.94 -
Book Value Per Share: 48.91 51.29
Price/Book Value Ratio: 3.91 -
Debt/Equity Ratio: 0:100 0:100
Current Ratio: 1.12 1.19
Asset Turn Over Ratio: 1.11 1.54
Days Receivables: 45 49
Days Inventory: 155 166
Gross Profit Margin (%): 15.82 14.48
Net Profit Margin (%): 5.57 4.88
R.O.A (%): 6.20 7.51
R.O.C.E (%): 12.75 28.24
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Plant Capacity & Production
The production capacity of plant cannot be determine as it depends on the relative proportions of various types of aluminum sections and types and sizes of cables and wires produced.
COMPANY INFORMATION: Chairman: Towfiq H. Chinoy; Chief Executive: Kamal A. Chinoy; Director: Haroun Rashid; Finance Director & Company Secretary: Aslam Sadruddin; Registered Office & Factory: B/21, Sindh Industrial Trading Estates Karachi-75700; Web Address: www.pakistancables.com