Cables & Electrical Goods: PAKISTAN CABLES LIMITED - Nine Months Ended March 31 2007
It is a public limited company incorporated in Pakistan, having its registered office and factory situated at B/21, Sindh Industrial Trading Estates (P.O. Box 5050) Karachi 75700. The company is engaged in the manufacture of copper rods wires, cables, conductors and aluminum extrusion profiles.
For the period under review, condensed financial statements have been prepared in accordance with the requirements of the International Accounting Standard (IAS) No 34, Interim Financing Reporting, and have been submitted to the shareholders as required under section 245 of the Companies Ordinance 1984 and the listing regulations of the Karachi Stock Exchange.
Pakistan Cables shares are trading at a very high price for example on June 25, 2007, the closing price of the share was quoted at Rs 269.90 which is nearly 27 times of the par value. During the last 52 weeks market value of Pakistan Cables shares ranged between Rs 155.50 and Rs 273.90 per share.
Financial position of the company has remained robust as evidenced from the profitability, solvency and liquidity ratios included in the following performance statistics of the company.
During nine months ended on March 31, 2007 of the financial year 2006-07 (9M 06-07), the company's sales and profit amounts were significantly much higher than corresponding figures of the same period last year (SPLY).
The company continued to show robust growth with a turnover of Rs 3.112 billion which was 45.5% higher than SPLY's turnover of Rs 2.138 billion. The increase in sales has been attributed to mainly trade, projects and utilities segments.
Better margins have enabled the company to post gross profit of Rs 500.31 million (SPLY: Rs 333.73 million) showing 49.9% increase.
Gross profit to sales ratio (G.P. Margin) improved by 0.48 percentage points to 16.08 percent in 9M 06-07 as compared to the SPLY of 15.60 percent. These outstanding achievements have been made despite increase in various expenses. Selling administration and other expense amounted to Rs 173.88 million (SPLY: Rs 121.27 million) and finance cost was booked at Rs 86.15 million (SPLY: Rs 53.25 million).
It was necessary to incur more expenditure on account of advertising and sales promotion to boost sales.
Incase of finance cost, more sales entailed higher working capital finance and that too further escalated because of higher interest rates. Enhanced borrowing were also raised for capital expenditure. The bottom line was enriched with higher pre-tax profit Rs 261.94 million (SPLY: Rs 171.40 million) and post-tax profit of Rs 171.94 million (SPLY: Rs 112.80 million).
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Performance Statistics (Mln Rs)
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Balance Sheet ---As At--- March 31 June 30
2007 2006
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Un-audited Audited
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Share capital paid-up: 146.33 97.56
Reserves & Surplus: 433.51 358.58
Shareholders Equity: 579.84 456.14
Surplus on Revaluation
of Fixed Assets: 549.58 551.34
L.T. Debts: 124.52 85.00
Other L.T. Employee Benefits: 10.91 10.10
D.T. Staff Gratuity: 14.90 14.24
Deferred Tax Liabilities: 62.95 65.03
Current Liabilities: 1,805.28 1,536.41
Fixed Assets Tangible: 1,104.21 995.23
L.T. Investments: 47.40 37.40
L.T. Loans: 2.42 1.21
L.T. Security Deposits: 2.39 2.31
Current Assets: 1,991.56 1,682.11
Total Assets: 3,147.98 2,718.26
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Profit & Loss A/c for Nine Months Ended
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---March 31--- 2007 2006
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Net Sales: 3,111.75 2,138.54
Gross Profit: 500.31 333.73
Other Operating Income: 9.53 6.57
Operating Profit: 335.96 219.03
Finance (Cost): (86.15) (53.25)
Share of Profit from Associates: 12.14 5.62
Profit before Taxation: 261.94 171.40
Profit after Taxation: 171.94 112.80
Earnings Per Share (Rs): 11.75 7.71
Share Price (Rs) on 25/06/07: 269.90 -
Price/Earning Ratio: 22.97 -
Debt/Equity Ratio: 10:90 8:92
Current Ratio: 1.10 1.09
Gross Profit Margin (%): 16.08 15.60
Net Profit Margin (%): 5.52 5.27
R.O.A. (%): 5.46 4.15
R.O.E. (%): 29.65 24.73
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COMPANY INFORMATION: Chairman: Towfiq H. Chinoy; Chief Executive: Kamal A. Chinoy; Director: Haroun Rashid; Finance Director & Company Secretary: Aslam Sadruddin; Registered Office, Factory & Marketing Office: B/21 Sindh Industrial Trading Estate P.O. Box 5050, Karachi 75700; Website: www.pakistancables.com