The company posted profit after taxation at 89.91 million as compared to Rs 52.04 million posted in the preceding year. Earnings per share improved by Rs 3.15 from Rs 4.34 in the preceding year to Rs 7.49 for the year under review. This enabled the directors to propose higher cash dividend at Rs 3 per share as against Rs 1.75 per share last year. During the last six years, the company has not skipped cash dividends as evidenced from the six years key financial data published with the Annual Report under review.
The KSB Pumps company's share market value, during the last 52 weeks continued to trend upward from Rs 30 per share to Rs 90.95 per share. On May 2, 2005, the closing price of the share was quoted at Rs 83.45 per share carrying very high premium of Rs 73.45 per share. At this price the Price Earning Ratio (PER) is 11 times of EPS showing immense confidence of the shareholder in KSB Pakistan.
KSB Pumps Company Limited is an affiliate company of the world famous German KSB Group. The KSB Group is among the leading Companies in the field of pumps and valves with subsidiaries and affiliated companies all over the world.
The company was incorporated in Pakistan on July 18, 1959 and is listed on the Karachi and Lahore Stock Exchanges.
The company's holding company is KSB A.G. Germany who owns its 7.066 million shares which works out to 58.9 percent of the company's stock. The other major institutional shareholder is NBP Trustee Deptt which holds 23.1% of the company's stock. Its 741 shareholders from general public own 1.339 million shares which is 11.6% of the total 12 million shares of the company.
The company is principally engaged in the manufacture and sale of industrial pumps, valves, castings and related parts. Its production facilities at Hassanabdal were completed in 1964 and a full fledged foundry was commissioned in the same premises in 1980.
It has been reported that during the last three decades, the company has rapidly expanded its production range to include a large variety of pumps to serve various sectors of the economy.
The new pumps for local production have been selected to particularly meet the requirements of sugar, paper and other process and chemical industries apart from meeting the requirements of drinking water supply, sewage disposal and surface drainage schemes.
The latest additions have been pumps of large capacity which are specifically meant for irrigation and drainage applications.
Pumps are produced in various metallurgical executions including cast iron Ni-resist cast iron, bronze and stainless steel.
The range of submersible pump sets use KB submersible motors ranging from 3HP to over 100 HP.
The company is ISO 9001 certified and has sales and service offices at Lahore, Karachi, Quetta, Rawalpindi, Hassanabdal, Peshawar and Multan. The company also operates through a dealership network throughout the country.
Comprehensive inspection and test bed facilities are available at Works, Hassanabdal to ensure compliance with quality standards in accordance with specifications of KSB AG Germany.
The production facilities are also being regularly modernised and extended to cope with the challenges of new technology. The foundry is capable of producing sophisticated automotive components apart from pumps and valves castings and is a leading supplier of tractor components castings in the country.
During the year ended December 31, 2005, the company posted sales revenue at Rs 1.252 billion (2004: Rs 0.854 billion) registering robust growth of 46.7% and at the same time crossing the rupees one billion sales mark for the first time in its career.
KSB Pumps Company Ltd has also shown 72.3% increase in profit after tax at Rs 89.91 million (2004: Rs 52.04 million).
The company achieved these unprecedented results at the time when raw material and other manufacturing costs were showing a substantial increase. Additionally, the company was able to reduce its cost of sales by 2% of sales.
The directors emphasised that the company's initiative to absorb the adverse impact through efficiency rather than passing it to the customer has also contributed positively.
The positive elements were controlled cost base, emphasis on cash management, improved efficiency, re-engineering of key processes and company's focus on making an efficient sale which brings in higher return on every rupee invested.
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Performance Statistics (Million Rupees)
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31st December 2005 2004
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Share Capital-Paid-up: 120.00 120.00
Reserves & Surplus: 257.07 188.16
Shareholders Equity: 377.07 308.16
L.T. Debts: - 2.26
Employees Retirement &
Other Benefits: 18.18 16.90
Current Liabilities: 450.46 342.10
Fixed Assets: 75.57 64.73
Investment Property: 2.93 3.05
L.T. Loans & Deposits: 3.38 3.78
Deferred Taxation: 6.00 10.11
Current Assets: 757.83 587.75
Total Assets: 845.71 669.42
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Sales, Profit & Pay Out
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Sales: 1,252.17 853.67
Gross Profit: 338.10 212.16
Other Operating Income: 27.62 34.79
Profit from Operations: 155.70 84.70
Finance (Cost): (10.67) (4.03)
(Depreciation): (15.24) (15.51)
Profit Before Taxation: 145.02 80.67
Profit After Taxation: 89.91 52.04
Earning Per Share (Rs): 7.49 4.34
Dividend Cash (%): 30.00 17.50
Share Price (Rs) on 02/05/06: 83.45 -
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Financial Ratios:
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Price/Earning Ratio: 11.14 -
Book Value Per Share: 31.42 25.68
Price/Book Value Ratio: 2.66 -
Debt/Equity Ratio: 0:100 1:99
Current Ratio: 1.68 1.71
Asset Turn Over Ratio: 1.49 1.28
Days Receivables: 94 70
Days Inventory: 80 94
Gross Profit Margin (%): 27.00 24.87
Net Profit Margin (%): 7.18 6.10
R.O.A. (%): 10.63 7.77
R.O.C.E. (%): 22.75 15.90
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Plant Capacity & Production Power Driven Pumps (Units)
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Capacity: 5,000 5,000
Actual Production: 4,499 4,276
Capacity Utilization (%): 89.98 85.52
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COMPANY INFORMATION: Chairman: Dr Auqus Lee; Chief Executive & Managing Director: Arif Ijaz; Company Secretary: S. Zamanat Abbas; Registered Office: 16/2, Sir Aga Khan Road Lahore 54000; Works: Hazara Road Hassanabdal; Web Address: Not Reported.