Textile Composite: BHANERO TEXTILE MILLS LIMITED - Half Year Ended December 31 2006
It is a public limited company incorporated in March 1980 and its shares are listed on all stock exchanges in Pakistan. The principal business of the company is manufacturing and sale of yarn and woven fabrics.
The company is one of the constituent members of a large industrial group - Umer Group of Companies. The group is involved in textile power generation, footwear, tannery and construction activities. Its textile group comprises, Bhanero Textile Mills Ltd, Faisal Spinning Mills Ltd and Blessed Textile Ltd, all three companies are operating both spinning and weaving facilities.
The installed capacity of Umer Group's facilities include 140,000 spindles supported by the latest European and Japanese machinery. Yarn is produced for the domestic industry in house consumption and export to the European Union and Far East. Its manufacturing facilities are located in two provinces where it's registered office and group Head Quarter located in Karachi.
According to its website the group generates an annual turnover of Pak rupees nine billion, approximately US $150 million. The group has invested more than US $10 million in recent years to expand its textile facilities to meet the international demand for its yarn and fabrics.
The financial results of Bhanero Textile Mills Ltd for the half year ended December 31, 2006 (HYD 06-07) are much better than the same period last year (SPLY). The company posted net sales at Rs 1.681 billion as compared to SPLY, registering 81% growth, which is commendable growth rate, attributed to the contribution of weaving unit.
All operating expenses increased in the normal trend except for financial cost, which increased exorbitantly. The company earned pretax profit of Rs 139.06 million for the nine months under review showing 76.2% increase over previous year's Rs 78.92 million. Net profit after taxation in HYD 06-07 at Rs 96.15 million works out to earning per share at Rs 32.05 as compared to Rs 16.76 per share SPLY.
The directors commented that cost of doing business in Pakistan is getting higher and higher.
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Performance Statistics (Mln Rs)
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Balance Sheet ---As At--- December 31 June 30
2006 2006
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Un-audited Audited
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Share Capital Paid-up: 30.00 30.00
Reserves & Surplus: 795.82 707.17
Shareholders Equity: 825.82 737.17
Loan from Sponsors: 100.00 -
Other L.T. Debts: 964.15 1,167.24
Deferred Liabilities: 140.75 109.23
Current Liabilities: 1,200.26 1,056.84
Fixed Assets Tangible: 2,083.65 2,151.44
L.T. Investments: 0.40 0.40
L.T. Loans: 4.02 6.19
L.T. Deposits: 2.28 9.29
Current Assets: 1,140.63 903.17
Total Assets: 3,230.98 3,070.49
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Profit & Loss A/c for half Year Ended
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---December 31--- 2006 2005
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Sales: 1,680.74 926.30
Gross Profit: 286.30 179.27
Other Income: 0.88 0.15
Finance (Costs): (104.57) (67.60)
Profit before Taxation: 139.06 78.92
Profit after taxation: 96.15 50.29
Earning Per Share (Rs): 32.05 16.76
Share Price (Rs) on 25/06/2007: 195.05 -
Price/Earning Ratio: 6.08 -
Debt/Equity Ratio: 51:49 61:39
Current Ratio: 0.95 0.85
Gross Profit Margin (%): 17.03 19.35
Net Profit Margin (%): 5.72 5.42
R.O.A. (%): 2.98 1.64
R.O.E. (%): 11.64 6.82
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COMPANY INFORMATION: Chief Executive: Mohammad Salim; Director: Mohammad Shakeel; Chief Financial Officer: Anwar Hussain; Company Secretary: Asif Mahmood; Registered Office: Umer Chamber, Bilmoria Street Karachi; Website URL: www.umergroup.com; Mills at: Unit No I Kotri, District Dadu Sindh; Unit Nos. II & III Feroz Watwan Sheikhupura Punjab.
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