Glass and Ceramics: SHABBIR TILES AND CERAMICS LIMITED - Nine Months Ended March 31, 2004

The organisation is a public limited company incorporated in the province of Sindh. It was incorporated on November 07, 1978. Its registered and manufacturing facilities are located at 15th Milestone, National Highway Landhi.
Shabbir Tiles & Ceramics Limited is primarily engaged in the manufacture and sales of tiles and trading of allied building products.
The annual production capacity of the plant has been rated at 2.30 million sq meters of tiles. During the last full year 2002-03, the company had attained 102% utilised capacity.
The production figure of cumulative nine months ended 31st March 2004 of the current financial year 2003-04 (9M 2003-04) is not available. But it has been indicated that required production could not be available because of start of the new Fast Firing Roller Kiln replacing/closure of the ageing Tunnel Kiln.
The replacement of old Kiln necessitated because of change in technology as well as its vital spare parts were not available.
In future, the new Kiln will enable smooth production line which is very essential to address the expanding demand of tiles.
The demand has been stimulated because of various house building financing schemes launched by commercial banks and House Building Finance Corporation.
It is a ISO 9001 certified organisation which would give comfort to its customers. The implementation of BMR project of new Kiln enables the company to market value added products which would provide competitive edge particularly against the influx of imported products.
During 9m 2003-04, the period under review, the company registered modest increase of 11% in sales turnover amounting to Rs 596.14 million over the sales turnover in the sum of Rs 536.58 million posted in the same period last year (SPLY).
But gross profit exhibited marginal decline of 3.62% to Rs 138.56 million as compared with gross profit of Rs 143.76 million in the SPLY.
Margins came under pressure because of intense competition fuelled by heavy influx of imported tiles. The competition triggered decline in selling price. Financial expenses substantially declined.
The selling and distribution expenses soared, probably to stimulate awareness about product and providing incentive to distribution channel.
The company's net profit after taxation was down to Rs 40.6 million. The share in the company is trading at Rs 24 per 5 rupee share.

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Performance Statistics                (Million Rupees)

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Balance Sheet                                  -As At-

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                                   March 31    June 30

                                       2004       2003

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Share Capital-Paid-up:              86.24        86.24

Reserves:                          278.24       255.74

Shareholders Equity:               364.48       341.98

L.T Debts:                         128.65       108.88

Deferred Taxation:                  43.80        41.49

Current Liabilities:               228.65       189.25

Fixed Assets-Tangible:             359.39       299.56

L.T Loans:                           0.07         0.09

L.T Deposits:                       12.12         8.33

Current Assets:                    394.00       373.62

Total Assets:                      765.58       681.60

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Profit & Loss A/c For the

 Nine Months ended         March 31, 2004         2003

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Turnover:                          596.14       536.58

Gross Profit:                      138.56       143.76

Other Income:                        1.78         1.63

Operating Profit:                   52.02        72.45

Financial (Charges):                11.44        16.89

Profit Before Taxation:             40.58        55.56

Profit After Taxation:              22.50        28.96

Earnings Per 5-rupee Share (Rs):     1.30         1.68

5 Rs Share Price (Rs)

 on 28.05.2004:                     24.00            -

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Financial Ratios

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Price/Earning Ratio:                18.46            -

Book Value of Share (Rs):           21.13        19.82

Debt/Equity Ratio:                  26:74        24:76

Current Ratio:                       1.72         1.97

Gross Profit Margin (%):            23.24        26.79

Net Profit Margin (%):               3.77         5.40

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