Synthetic & Rayon: IBRAHIM FIBRES LIMITED - Half Year Ended December 31 2006
The company belongs to a large industrial Group - Ibrahim Group of Company. As regards its legal status and activities, Ibrahim Fibres Ltd is a public limited company incorporated in the province of Punjab and is also listed on stock exchanges in Pakistan.
The principal business of the company is manufacture and sale of polyester staple fibre (PSF) and yarn. Its manufacturing facilities are located at Sheikhupura, Faisalabad Road, in the province of Punjab and its registered office is situated in New Garden Town Lahore.
On October 21, 2000, the assets liabilities and reserves of Ibrahim Textile Mills Ltd, A.A. Textile Ltd, Zainab Textile Mills Ltd and Ibrahim Energy Ltd were merged with the company.
The company has also 31.63% stake in the equity of its associated company, Allied Bank Limited (ABL) as on December 31, 2006, the company's investments in this associate amounted to Rs 8.36 billion. The company's share in the profits of this associate (ABL) amounting to Rs 731.02 million has been accounted for the half year ended December 31, 2006 (HYD 06-07) as compared to Rs 323.05 million in HYD 05-06.
The company is upgrading its production facilities by replacing the machinery of one of its textile plants. In this regard, the ring spinning and cone winding equipment will be replaced with the most modern technology imported from Zinser and Schlafhorst, Germany which are the leading textile machinery suppliers of the world. SOT letters of credit were established and the equipment is expected to arrive at the site in June 2007.
The business environment of the textile industry during the period under review, faced various challenges which include price competition in the international market, high energy costs, and increasing finance cost. On top of these factors, the international market, especially the American and European markets for textile products remained bearish throughout the half year under review.
It has been reported by the directors of the company that overall sales of textile products experienced a downward trend and exporters struggled to maintain their sales volume in the international markets. During HYD 06-07 the company posted net sales at Rs 7.617 billion (HYD 05-06: Rs 8.306 billion) and gross profit at Rs 971.21 million (HYD 05-06: Rs 1,047.51 million) showing decline by 8.3% and 7.3% respectively as compared to the previous corresponding period.
Higher finance cost further depressed the profitability.
Notwithstanding, the company's net profit remained higher at Rs 855.66 million in HYD06-07 as compared to Rs 560.41 million in the preceding year's corresponding period. As mentioned earlier the share of profit of associate was Rs 731.02 million and this kept the profit of half year under review higher.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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December 31 June 30
2006 2006
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Un-audited Audited
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Share Capital-Paid-up: 3,105.07 3,105.07
Capital & Revenue Reserves: 5,559.63 4,666.53
Shareholders Equity: 8,664.70 7,771.60
L.T. Debts: 4,872.25 5,511.12
Deferred Liabilities: 1,266.44 1,203.33
Current Liabilities: 6,121.01 4,281.47
Fixed Assets Tangible: 7,526.58 7,786.97
Intangible Assets: 19.85 19.29
Investment in Associate: 8,360.60 7,590.17
L.T. Deposits: 2.77 2.93
Current Assets: 5,014.60 3,368.16
Total Assets: 20,924.40 18,767.52
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Profit & Loss A/c for Half Year Ended -December 31-
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2006 2006
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Sales-Net: 7,617.08 8,305.53
Gross Profit: 971.21 1,047.51
Other Operating Income: 13.67 17.24
Finance (Cost): (473.25) (431.47)
Share of Profit of Associate-Net: 731.02 323.05
Profit Before Taxation: 1,026.20 771.61
Profit After Taxation: 855.66 560.41
Earnings Per Share (Rs): 2.76 1.80
Share Price (Rs) on 13-06-2007: 50.20 -
Price/Earning Ratio: 18.19 -
Debt/Equity Ratio: 36:64 41:59
Current Ratio: 0.82 0.78
Gross Profit Margin (%): 12.75 12.61
Net Profit Margin (%): 11.23 6.74
R.O.A. (%): 4.08 2.99
R.O.E. (%): 9.87 7.21
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COMPANY INFORMATION: Chairman: Sheikh Mukhtar Ahmed; Chief Executive Officer: Mohammed Naeem Mukhtar; Secretary: Anwarul Haque F.C.A; Registered Office: Ibrahim Centre 1-Ahmed Block, New Garden Town Lahore-54600; Website URL: Not Reported; Head Office: Ibrahim Centre, 15, Club Road Faisalabad-38000; Factory: 38-40 Kilometers, Faisalabad Sheikhupura Road Faisalabad.
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