Cement: DADABHOY CEMENT INDUSTRIES LIMITED - Half Year Ended December 31 2006
Dadabhoy Cement Industries Ltd is one of the constituent members of an industries group, Dadabhoy Group of Companies. The Group is engaged in diversified fields such as cement, construction, real estate, insurance, leasing, modaraba, small power generation and Dadabhoy Foundation which is doing a lot in the domain of education.
According to Abdullah Dadabhoy, Managing Director of the Group, they have a plan to set up an educational city at Hawks Bay for which they have acquired 250 acres of land. They envision that the "city" would be first of its kind in which from school level to university level, education will be imparted in almost all fields.
The company was incorporated on August 9, 1979 as a public limited company in the province of (Sindh). The company is engaged in the manufacturing and sale of ordinary portland, slag and sulphate resistant cement. Its registered office is situated at Jinnah Cooperative Housing Society, Shahrah-e-Faisal Karachi. Whereas its cement plant is located in Nooriabad, District Jamshoro (Sindh). The company is listed on all stock exchanges of the country.
On June 15, 2007, the closing price of its share was quoted at Rs 10.45 per share carrying 4.5% premium over the par value. During the last 52 weeks, the market value of the share ranged between Rs 5.10 and Rs 10.70 per share.
It has been reported in the Half Yearly report of the company, that the company's production had been severely affected due to heavy rains during the half year as it was reduced to 125.6 thousand tons of cement as compared to 246.1 thousand tons in the same period last year (SPLY).
As a result of heavy rains, there were frequent shutdowns and caused moisture in coal. Increase in start-up times and wet-coal resulted in substantial increase in energy cost during the half year under review.
During the half year under review, the company posted net-sales at Rs 368.19 million registering 51.8% decline as compared to Rs 764.88 million in the SPLY.
Higher manufacturing cost pushed down the gross profit margin 18.98 percent as compared to 31.07% in the SPLY. Gross profit declined to Rs 69.90 million in the half year under review showing sharp decline of 70.6% as compared to Rs 237.62 million in the SPLY.
The revised arrangements with banks will create no impact on financial charges for the six months under review. Hence the company has not recorded finance charges for the period under review. But Company is paying all lease obligations as per repayment schedule. Its pretax profit amounted to Rs 20.67 million as against Rs 92.40 million showing 78% declined. But profit after taxation was higher at Rs 34.53 million as against Rs 10.73 million in SPLY because of higher provision of tax in SPLY and favourable provision in HYD-06-07.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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December 31 June 30
2006 2006
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Un-audited Audited
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Share Capital-Paid-up: 438.56 438.56
Accumulated (Losses): (160.14) (206.65)
Shareholders Equity: 278.42 231.91
Advance against issue of Shares: 220.00 -
Surplus on Revaluation of Fixed Asset: 1,010.10 1,022.08
Due to Directors: 12.53 -
L.T. Deposits: 2.00 3.00
Other L.T. Debts: 1,052.15 1,137.70
Deferred Liabilities: 629.60 644.71
Current Liabilities: 359.26 402.95
Fixed Assets Tangible: 2,986.11 2,917.43
Intangible Assets: 2.73 3.62
L.T. Investments: 107.99 107.99
L.T. Loans & Deposits: 14.51 11.11
Current Assets: 452.72 402.20
Total Assets: 3,564.06 3,442.35
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Profit & Loss A/c for Half Year Ended -December 31-
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2006 2005
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Sales-Net: 368.19 764.88
Gross Profit: 69.90 237.62
Other Income: 0.07 0.57
Finance (Costs): (0.35) (51.49)
Profit Before Taxation: 20.67 92.40
Profit After Taxation: 34.53 10.73
Earnings Per Share (Rs): 0.79 0.24
Share Price (Rs) on 15/06/2007: 10.45 -
Price/Earning Ratio: 13.22 -
Debt/Equity Ratio: 41:59 48:52
Current Ratio: 1.26 1.00
Gross Profit Margin (%): 18.98 31.07
Net Profit Margin (%): 9.37 1.40
R.O.A. (%): 0.97 0.31
R.O.E. (%): 12.40 4.62
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COMPANY INFORMATION: Chairman: Muhammad Hussain Dadabhoy; Chief Executive: Muhammad Amin Dadabhoy; Director: Fazal Karim Dadabhoy; Company Secretary: Ejaz Ahmed; Registered office & Share Department: 5th Floor Maqbool Commercial Complex Jinnah Cooperative Housing Society Block 7 & 8, Shahrah-e-Faisal Karachi; Website URL: Not Reported; Factory: Nooriabad Deh Kalu Kohar, District Jamshoro (Sindh).