Synthetic & Rayon: GATRON (INDUSTRIES) LIMITED - Half Year Ended December 31 2006
The company is primarily engaged in manufacture of polyester polymer and its various downstream products viz. filament/texturised polyester yarn and polyester chips bottle grade (P.E.T. Resin) converted into polyester PET preforms.
The company wholly owns a subsidiary company namely Gatron Power Ltd, engaged in power generation and its transmission to the company. Gatron Industries Ltd was incorporated in 1980 as a public limited company in the province of Balochistan, its registered office is in Quetta whereas its manufacturing facilities are in Hub Industrial Trading Estate Balochistan.
The company is listed on all stock exchanges of Pakistan and at present its shares are trading at Rs 94.50 per share which is more than nine times of the par value. During the last 52 weeks, market value of the share ranged between Rs 80 and Rs 191 per share.
During the six months period ended December 31, 2006 (HYD 06-07) net sales of the company went up by 31.2% to Rs 2.836 billion (HYD 05-06: Rs 2.162 billion) as compared to the same period last year (SPLY).
The directors of the company clarified that this is a reflection of higher unit values due to increased raw material and input costs as well as increase of capacity and sales of value added PET preforms.
Sales of preforms went up, but on the other hand there was significant reduction in the sales of Polyester Filament Yarn as well as output of Polyester Filament Yarn. The stocks of filament yarn were also piling up during the period under review. According to the directors, the situation on the Polyester Filament Yarn front is very grim. The foreign suppliers are exporting yarn at a very low spread over their raw materials, which is not covering all their costs. Recently three major Far Eastern suppliers filed for bankruptcy, viz, Hualon, Hankook, Tuntex. These were some of the suppliers into Pakistan, at below cost prices. The other problem facing the industry is the large scale import of fabric at under valued prices wiping the duty and protection levels.
The company posted net profit at Rs 50.83 million which works out to earning per share at Rs 1.32. At the prevailing share price the price to earnings ratio is a multiple of 72 showing continued high confidence of its investors/shareholders.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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December 31 June 30
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2006 2006
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Un-audited Audited
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Share Capital-Paid-up: 383.64 383.64
Reserves & Surplus: 1,695.65 1,705.36
Shareholders Equity: 2,082.29 2,089.00
L.T. Debts: 572.43 461.01
Deferred Liabilities: 387.04 404.29
Current Liabilities: 2,381.02 2,272.54
Fixed Assets Tangible: 2,563.76 2,487.65
L.T. Investments: 300.50 300.50
L.T. Loans: 0.88 0.28
L.T. Security Deposits: 1.02 1.17
Current Assets: 2,556.62 2,437.24
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Total Assets: 5,422.78 5,226.84
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Profit & Loss A/c for Half Year Ended - December 31-
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2006 2005
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Net Sales: 2,836.02 2,162.01
Gross Profit: 236.91 153.55
Other Operating Income: 16.29 18.45
Operating Profit: 156.91 107.99
Finance (Cost): (86.16) (47.94)
Profit Before Taxation: 70.75 60.06
Profit After Taxation: 50.83 54.67
Earnings Per Share (Rs): 1.32 1.43
Share Price (Rs) on 13/06/2007: 94.50 -
Price/Earning Ratio: 71.59 -
Debt/Equity Ratio: 22:78 18:82
Current Ratio: 1.07 1.07
Gross Profit Margin (%): 8.35 7.10
Net Profit Margin (%): 1.79 2.53
R.O.A. (%): 0.94 1.05
R.O.E. (%): 2.44 1.05
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COMPANY INFORMATION: Chairman: Haji Haroon Bilwani; Chief Executive: Peer Mohammad Diwani; Chief Financial Officer: Rizwan Diwan; Company Secretary: Mohammad Yasir Bilwani; Registered Office: 1st Floor Ahmed Complex Jinnah Road Quetta; Website URL: Not Reported; Liaison Office: Textile Plaza, M.A. Jinnah Road/Dunolly Road Karachi; Factory: Sec M, HITE Main RCD Highway Hub Chowki, Lasbella District Balochistan.