This company is also one of the constituent members of Lakson Group of Companies. The company was incorporated on January 28, 1980 as a public limited company. It is mainly engaged in the manufacture and sale of printing and packaging materials.
Its registered office is located in Lakson Square Building No 2 and factory is situated at Korangi Industrial Township Karachi.
Merit Packaging shares are listed on the Karachi Stock Exchange. At present the share is trading at Rs 72.45 per share which is more than seven times of the par value. During the last one year, price of the share ranged between Rs 55.60 and Rs 86 per share.
The company has robust financial health as evidenced from the financial ratios appended below. The book value of its share at Rs 41.52 per share is more than four times of the par value.
Moreover current and long term debt to equity ratios are much above the corresponding benchmark ratios.
The directors commented that its overall nine months performance reflects improved results both in terms of sales and profit. The sales revenue increased to Rs 393.44 million during the nine months of current financial year 2005-06 as compared to Rs 341.33 million showing 15.3% improvement over same period last year (SPLY).
Gross profit went up by 33%. The increase in gross profit was attributed to value addition, better product mix and improved efficiency. After accounting for administrative, selling and distribution expenses, other operating income, other operating charges and financial charges the company posted pre-tax profit of Rs 30.40 million as against Rs 28.02 million in the SPLY.
Intense competition in the printing industry continues with persistent pressure on profit margin.
The directors assured that the company is utilising full operational capabilities to further improve quality and production efficiencies.
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Performance Statistics (Mln Rs)
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Balance Sheet ---As At---
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March 31 June 30
2006 2005
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Un-Audited Audited
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Share Capital-Paid-up: 27.49 27.49
Reserves: 86.65 74.22
Shareholders Equity: 114.14 101.71
Surplus on Revaluation
of Fixed Assets: 99.91 102.29
L.T. Debts: 144.75 148.47
Deferred Liabilities: 33.35 24.59
Current Liabilities: 114.47 107.32
Fixed Assets: 371.69 357.74
L.T. Loans: 0.07 0.17
L.T. Deposits & Prepayments: 7.57 5.02
Current Assets: 127.29 121.45
Total Assets: 506.62 484.38
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Profit & Loss A/c for the Nine Months Ended March 31
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2006 2005
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Sales: 393.44 341.33
Gross Profit: 65.47 49.26
Other Operating Income: 0.68 0.15
Operating Profit: 48.81 34.69
Financial (Charges): (18.40) (6.67)
Profit Before Taxation: 30.40 28.02
Profit After Taxation: 19.67 18.18
Earnings Per Share (Rs): 7.15 6.61
Share Price (Rs) on 03/08/06: 72.45 -
Price/Earning Ratio: 10.13 -
Book Value Per Share (Rs): 41.52 37.00
Debt/Equity Ratio: 40:60 42:58
Current Ratio: 1.11 1.13
Gross Profit Margin (%): 16.64 14.43
Net Profit Margin (%): 5.00 5.32
R.O.A. (%): 3.88 3.75
R.O.E. (%): 5.02 4.82
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COMPANY INFORMATION: Chairman: Iqbalali Lakhani; Advisor: Sultanali Lakhani; Chief Executive Officer: Mohammad Shahid; Company Secretary: Shabnam Ashi; Registered Office: Lakson Square Building No 2 Sarwar Shaheed Road, Karachi 74200; Factory: 17-B, Sector 29, Korangi Industrial Township Karachi 75180.
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