Fatima Enterprises Ltd sales was record highest but net profit after taxation was the record lowest.
The company has started huge investments in Balancing and Modernisation of both the spinning mills for improving quality and variety of yarn.
The directors of the company anticipate that the current year (2003-04) will be also tough on for textile industry as cotton prices are higher, the rupee is stronger and markets are in recession.
They are also anxious about heavy annual loan installments as these are due to different financial banks/institutions, which are becoming difficult to pay unless surplus funds are available with the company.
Due to above reasons the Board of Directors decided to pass over the dividend. This is the third consecutive year of skipping the dividend.
Fatima Enterprises Ltd was incorporated in the province of Punjab on 13th November, 1976 as a public limited company for taking over such assets of Sh. Fazal Rehman & Sons Limited which were not nationalised or subsequently returned by the government.
Its shares are quoted on Karachi Stock Exchange (Guarantee) Limited. It is principally engaged in the business of cotton ginning, extraction of seed oil, manufacture and sale of vegetable ghee, cooking oil, laundry soap and woollen/cotton/synthetic yarn.
Its manufacturing facilities include 27,528 spindles at located Muzaffargarh and another 24,288 spindles in Okara.
The annual installed capacity of the plant has been rated at 16.927 million kgs of yarn of 20's count.
During the year under review, Fatima Enterprises Ltd production was recorded at 15.809 million kgs after conversion into 20's count.
Last the output was recorded at 14.116 million kgs. The company's utilised capacity increased 93.4% as against 83.4% in the preceding year and the output increased by 6.9% as compared to the preceding year.
On 30th June the company's 40.63% of its total 14.231 million shares by its associated companies.
These companies are Fazal Corporate Exports (Pvt) Ltd, Nasir & Company (Private) Ltd, Ahad Nishat Yousuf (Pvt) Limited, Hussain Mills Ltd and Fazal Industries (Pvt) Ltd.
NIT and ICP held 12.91% of the company's stock. The company's directors, their spouses etc held 9.07% of its stock.
At present Fatima Enterprises' shares are trading at Rs 15% at 50% premium over the par value of Rs 10.
During the last 52 weeks the market price of the share appreciated to Rs 15 from Rs 12 per share. It exhibits that the share's market price has fluctuated in a narrow price band but above its par value.
During the period under review, the company generated net sales at Rs 4.583 billion as compared to the previous year's sales figure of Rs 4.123 billion registering 11.15% growth over the preceding year's sales.
The sales figure is record highest of last six years. Cotton spinning units sales amounted to Rs 1.757 billion or 38.3% of total net sales. After that the solvent extraction plant sales at Rs 1.591 billion was or 34.7% of total net sales.
Vegetable ghee units generated sales at Rs 1.066 billion and cotton ginning and oils mills sales amounted to Rs 0.159 million whereas woollen mills' contribution to total sales was in the sum of Rs 9.86 thousand or 0.010 million.
The company recorded gross profit at Rs 259.18 million (2001-02: Rs 329.65 million) showing drastic decline by 21.38% as compared to the preceding year's. Pretax Profit was down at Rs 77.94 million (2001-02: Rs 100.35 million). Net profit at Rs 5.03 million (2001-02: Rs 85.87 million) was much lower.
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Performance Statistics (Million Rupees)
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30 September 2003 2002
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Share Capital-Paid-up: 142.31 142.31
Reserves & Surplus: 169.18 164.14
Shareholders Equity: 311.49 306.45
L.T. Debts: 553.96 461.58
Deferred Liabilities: 58.33 18.55
Current Liabilities: 1,393.83 1,065.15
Fixed Capital Expenditure: 1,070.28 787.32
L.T. Investments: 2.42 2.52
L.T. Loans & Deposits & Prepayments: 8.77 6.80
Current Assets: 1,236.14 1,055.09
Total Assets: 2,317.61 1,851.73
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Sales, Profit & Pay Out
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Sales-Net: 4,583.30 4,123.37
Gross Profit: 259.18 329.65
Operating Profit: 199.99 278.92
Other Income-Net: 12.25 4.55
Financial (Charges): (129.06) (177.48)
(Depreciation): (89.02) (80.15)
Profit Before Taxation: 77.94 100.35
Profit After Taxation: 5.03 85.67
Earnings Per Share (Rs): 0.35 6.02
Share Price (Rs) Dated 22.01.2004: 15.00 -
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Financial Ratios
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Price/Earning Ratio: 42.85 -
Book Value Per Share: 21.89 21.53
Price/Book Value Ratio: 0.68 -
Debt/Equity Ratio: 65:35 60:40
Current Ratio: 0.89 0.99
Asset Turn Over Ratio: 1.98 2.23
Days Receivables: 15 20
Days Inventory: 55 57
Gross Profit Margin (%): 5.65 8.00
Net Profit Margin (%): 0.10 2.08
R.O.A. (%): 0.21 4.63
R.O.C.E. (%): 0.16 10.89
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Plant Capacity & Production (Million Kgs)
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A) Yarn 20's count
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Installed Capacity: 16.927 16.927
Actual Production
Converted 20's Count: 15.809 14.116
Capacity Utilisation (%): 93.39 83.39
B) Number of Spindles Installed: 51,816 51,816
C) Actual Production: 16.006 14.892
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COMPANY INFORMATION: Chief Executive: Sh. Nishat Ahmed; Director: Sh. Zafar Iqbal; Company Secretary: Malik Muhammad Iqbal; Registered Office: Solvent Plant, 487-A Mumtazabad, Vehari Road Multan; Factories: Muzaffarabad, Okara.
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