Automobile Assembler: GHANDHARA NISSAN LIMITED - Nine Months Ended March 31 2007
Ghandhara Nissan Limited was incorporated on August 18, 1981 in Pakistan as a private limited company and subsequently converted into a public limited company on May 24, 1992. The registered office of the company is situated at Ghandhara House, 109/2 Clifton, Karachi. The company's shares are listed on Karachi Stock Exchange.
The principal activity of the company is assembly/progressive manufacture of Nissan passenger cars, trucks and buses, import and marketing of Nissan vehicles and assembly of other vehicles under contract agreement.
During nine months ended March 31, 2007 of the financial year 2006-07 (9M 06-07), the company posted sales in terms of value at Rs 2.205 billion and gross profit at Rs 383.03 million as compared to sales at Rs 3.512 billion and gross profit at Rs 441.68 million booked respectively in the same period last year (SPLY). It can be seen that both sales and gross profit sharply declined.
The directors report stated that Nissan passenger cars and SUVs sold during nine months were 325 as against 618 in the SPLY.
The contract assembly business increased as compared to the corresponding period of last year - 1942 units were assembled as against 1796 units of the SPLY.
It is also reported that there was reorganisation of sales network and the company introduced PKD 411 with turbo charged engine replacing PKD 311 which was the highest selling model of Nissan trucks. These factors had their impact on sales which initially slowed down but afterwards were picking up.
The directors foresee that the induction of 6x4 trucks and truck tractors with the capacity of 28 tons and 55 tons respectively will enable the company to compete in all segments and the recommencement of CKD operation of Nissan car next years, will have a favourable impact on the performance of the company.
The company also pointed out about decline in the trading profit because the opportunity for sale of new imported cars on a large scale which was available last year does not exist any more due to the availability of locally assembled cars ex-factory prices and used imported cars.
The company earned profit before tax at Rs 227.58 million (SPLY: Rs 284.54 million) and net profit after taxation at Rs 143.64 million (SPLY: Rs 94.17 million). During the period under review net profit after taxation was higher because of larger tax provision amount in SPLY.
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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: 450.02 450.02
Reserves & Surplus: 235.33 82.16
Shareholders Equity: 685.35 532.18
Surplus on Revaluation
of Fixed Assets: 291.37 300.91
L.T. Debts: 204.69 329.74
L.T. Deposits: 14.61 15.61
Deferred Liabilities: 201.78 202.80
Current Liabilities: 1,137.63 1,479.73
Fixed Assets Tangible: 954.32 979.15
L.T. Investments: 23.24 -
Current Assets: 1,552.71 1,876.66
Total Assets: 2,535.43 2,860.97
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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 & Services: 2,204.71 3,511.59
Gross Profit: 383.53 441.68
Operating Profit: 290.73 367.23
Other Operating Income: 44.82 11.85
Finance (Cost): (91.20) (73.44)
Profit Before Taxation: 227.58 284.54
Profit After Taxation: 143.64 94.17
Earnings Per Share (Rs): 3.19 2.09
Share Price (Rs) on 25-06-2007: 38.30 -
Price/Earning Ratio: 12.01 -
Debt/Equity Ratio: 17:83 28:72
Current Ratio: 1.36 1.27
Gross Profit Margin (%): 17.40 12.57
Net Profit Margin (%): 6.51 2.68
R.O.A. (%): 5.67 3.29
R.O.E. (%): 20.96 17.69
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COMPANY INFORMATION: Chairman: Raza Kuli Khan Khattak; President: Lieutenant General Ali Kuli Khan Khattak (Retd); Chief Executive Officer: Ahmed Kuli Khan Khattak; Director: Koichi Sekine; Chief Financial Officer: Muhammad Saleem Baig; Company Secretary: Aqiel Amjad Ghani; Registered Office: Ghandhara House 109/2, Clifton Karachi; Factory: Truck & Car Plants: Port Bin Qasim, Karachi.