Dewan Cement Ltd belongs to a large conglomerate Dewan Mushtaq Group and its other companies are, Dewan Salman Fibre Ltd, Dewan Hattar Cement Ltd, Dewan Sugar Mills Ltd, Dewan Textile Mills Ltd, Dewan Khalid Textile Mills Ltd, Dewan Mushtaq Textile Mills Ltd, Dewan Farooque Motors Ltd, Dewan Automotive Engineering Ltd, Dewan Farooque Spinning Mills Ltd.
Dewan Cement Ltd is engaged in the manufacturing and sale of cement. The company is a public limited company listed on Karachi and Lahore stock exchanges. It was incorporated in the province of Sindh in March 1980. The Chairman/Chief Executive of the company foresees continued demand of cement in the domestic market as major infrastructure projects have yet to come.
On the supply side installed base has increased and is further increasing, with more under implementation capacities coming into operation. According to him, these additional capacities are providing the required impetus to increase exports sales which have already increased by 36.81% in the period under review over same period prior year. Export sales, therefore, are expected to increase at a still higher pace.
The company reports that it is vigorously pursuing the completion of its second line of production. Soon after putting the second line in operation it is planned to carry out optimization of first line which is expected to increase profitability margin significantly due to reduction in fuel and power costs per ton and due to economies of scale.
As regards operating results during the half year ended December 31, 2006 (HYD 06-07), the company produced cement at 336.1 thousand tons (HYD 05-06: 352.7 thousand tons) showing decline by 4.7% as against same period last year (SPLY).
Total sales in terms of volume in HYD 06-07, was recorded at 344.61 thousand tons as against 354.83 thousand tons showing decrease by 10.22 thousand tons as compared to SPLY. While domestic sales at 306.92 thousands tons were down by 13.3%. Its export sales at Rs 37.69 thousand tons were up by nearly 38 times of the SPLY.
Net sales in terms of value amounted to Rs 1.074 billion in HYD 06-07 as compared to Rs 1.144 billion registering 6.1% decline.
Gross profit was also down while administrative expenses were higher by Rs 16.9 million, finance costs were lower by Rs 70.6 million. But the company posted pretax profit at Rs 20.26 million (SPLY: Rs 94.90 million) and after tax profit at Rs 13.44 million (SPLY: Rs 96.38 million). On June 15, 2007, the closing price of its share was quoted at Rs 16.40 per share carrying 64% premium.
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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: 1,650.00 1,650.00
Reserves-Net: 537.96 593.16
Shareholders Equity: 2,187.96 2,243.16
Surplus on Revaluation
of fixed Assets-Net of Tax: 626.97 639.60
L.T. Debts: 3,778.79 3,374.43
L.T. Deposits: 79.14 79.19
Deferred Liabilities: 622.05 620.60
Current Liabilities: 2,095.06 1,286.14
Fixed Assets Tangible: 6,791.47 6,113.81
Intangible Assets: 12.56 11.20
Investment in Associate: 947.91 951.27
L.T. Loans: 1.19 1.33
L.T. Deposits: 24.81 21.42
Current Assets: 1,612.03 1,144.09
Total Assets: 9,398.97 8,243.12
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Profit & Loss A/c for Half Year ended -December 31-
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2006 2005
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Turnover-Net: 1,073.98 1,143.63
Gross Profit: 160.26 266.09
Other Operating Income: 26.83 28.96
Operating Profit: 130.48 256.60
Finance (Cost): (111.62) (182.22)
Profit before Taxation: 20.26 94.90
Profit after Taxation: 13.44 96.38
Earnings per Share (Rs): 0.08 0.68
Share Price (Rs) on 15/06/2007: 16.40 -
Price/Earning Ratio: 205.00 -
Debt/Equity Ratio: 57:43 54:46
Current Ratio: 0.77 0.89
Gross Profit Margin (%): 14.92 23.27
Net Profit Margin (%): 1.25 8.42
R.O.A. (%): 0.14 1.16
R.O.E. (%): 0.61 4.29
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COMPANY INFORMATION: Chairman/Chief Executive: Dewan Muhammad Yousuf Farooque; Director: Khursheed Anwar Jamal; Chief Financial Officer: Shahab Mahmud Ansari; Company Secretary: Khursheed Anwar Jamal; Registered Office: Dewan Centre, 3-A, Lalazar, Beach Hotel Road, Karachi; Website URL: www.dewangroup.com.pk; Head office: Block-A, 7th Floor, Finance & Trade Centre, Shahrah-e-Faisal Karachi; Factory: Deh Dhando, Dhabeji.
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