Synthetic & Rayon: AL-ABID SILK MILLS LIMITED - Half Year Ended December 31 2003
The closing quotation of Al-Abid Silk Mills Ltd shares is quite high at Rs 71 against its par value of Rs 10. During the last one year the bull run at the stock exchange has catapulted its share price to a very high level and is poised to cross Rs 100 threshold.
This 36-year-old company of Manghopir Road Karachi manufactures and processes various kinds of fabrics and exports printed and dyed cloth, bed sets and other textile made-ups.
During the period under review (H/Y 2003-04), the company's sales and profit have lagged behind the figures of the same period last (SPLY).
The downward trend in sales has been a matter of great concern for the management and according to them this was entirely due to Export Promotion Bureau EPB. Their quotes of shipment were blocked due to preceding year's over-programming by EPB.
The directors further informed that EPB was apprehensive that European Community might impose embargo, as a result substantial orders were refused and some orders had to be shifted to January 2004 after the balance sheet date of the account under discussion.
So, one of the major issues in the decline of pre-tax was reduced sales revenue. The company's sales and services revenue declined to Rs 1374.44 million from Rs 1492.74 million in the SPLY by 7.9%.
Pre-tax profit was posted at Rs 35.46 million which shows a shortfall of Rs 10.57 million from Rs 46.03 million in the SPLY.
The other issue was the diminishing yield of in rupee against dollar as nearly 2% yield was less in the first quarter of the current financial compared to the first quarter in the preceding year.
Profit appears to be on the lower side also because of increase in depreciation which resulted out of BMR which was implemented towards the end of last financial year. The increase in depreciation is more than Rs 18 million.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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December 31 June 30
2003 2003
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Liabilities
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Share Capital-Paid-up: 74.25 74.25
Capital Reserve: 128.70 128.70
Unappropriated Profit: 430.20 405.88
Shareholders Equity: 633.15 608.83
L.T Debts: 288.15 253.31
Deferred Liabilities: 20.02 19.51
Current Liabilities &
Provisions: 1,782.91 1,971.98
Fixed Capital Expenditure: 955.48 957.69
Advance for Shares: 1.11 1.09
L.T Deposits, Prepayments
& Deferred Cost: 24.16 25.28
Current Assets: 1,743.48 1,869.57
Total Assets: 2,724.23 2,853.63
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Profit & Loss A/c For
Six Months Ended December 31 2003 2002
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Sales & Services: 1,374.44 1,492.74
Gross Profit: 214.07 233.27
Operating Profit: 86.74 109.07
Other Income: 0.84 0.98
Financial (Charges): 50.25 61.60
Profit Before Taxation: 35.46 46.03
Profit After Taxation: 24.32 34.10
Earning Per Share (Rs): 3.28 5.69
Share Price (Rs) on 19.05.2004: 71.00 -
Price/Earning Ratio: 21.65 -
Book Value of Share (Rs): 57.94 54.66
Debt/Equity Ratio: 31:69 29:38
Current Ratio: 0.98 0.95
Gross Profit Margin (%): 15.57 15.63
Net Profit Margin (%): 1.77 2.28
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COMPANY INFORMATION: Chairman & Chief Executive: Naseem A. Sattar; Director: Azim Ahmed; Secretary: S.M. Jawed Azam; Registered Office: A-39, S.I.T.E Manghopir Road Karachi; Factory: A-39, A-51/B, A-34/A, D-14/C-1, A-29/B, S.I.T.E Karachi.
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