Textile Spinning: ELLCOT SPINNING MILLS LIMITED - Nine Months Ended March 31 2007
Established in 1991, Ellcot Spinning Mills Ltd, comprising 49,728 spindles and related machinery produces high quality yarns of 100% cotton, synthetic and polyester/cotton blends. Carded and combed yarns for weaving and knitting application are produced in many blends. Part of overall capacity of 49,728 spindles 48 ring frames comprising 24,768 spindles through which upto 120 Ne can be produced.
The company is one of the constituent members of a large industrial group - Nagina group. The other undertakings of the group are Nagina Cotton Mills Ltd, Prosperity Weaving Mills Ltd, and three plants for power generation with total generation capacity of 30.57 megawatts.
The group also markets chemicals, synthetic fibers and textiles through Ellahi International (Pvt) Ltd which is the major trading company of the group.
According to the group's website the group expects to enjoy an annual turnover of US $80 million and expansion of group capacity will enhance the turnover to US $100 million. During nine months ended March 31, 2007 (9M 06-07), the company's net sales increased by 17.52% to Rs 1.128 billion as compared to Rs 960.17 million in the same period last year (SPLY), but gross profit marginally declined.
The company posted Rs 45.39 million as profit before taxation in the nine months under review and this figure is lower by 10.02% as compared to nine months of last financial year. Net profit after taxation amounting to Rs 39.59 million is 12.91% lower as compared to Rs 45.46 million posted in the nine months of last financial year.
According to the directors' report the 3rd quarter 2007 (Q3-07), yarn production was 14.52% higher than 3rd quarter 2006 (Q3-06). Average count of yarn spun during Q3-07 was 0.19% coarser than Q3-06. Yarn sales were quantitatively 3.42% higher. Average sale price of yarn increased by 4.34% in Q3-07 as compared to the same quarter of 2006. Operating profit and net profit after taxation in the 3rd quarter 07 sharply declined.
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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: 109.50 109.50
Un-appropriated Profit: 307.28 284.11
Shareholders Equity: 416.78 393.61
L.T. Debts: 578.06 451.19
Deferred Liabilities Gratuity: 11.98 10.77
Deferred Taxation: 35.55 35.55
Current Liabilities: 490.25 427.49
Fixed Assets Tangible: 993.09 890.21
L.T. Deposits: 2.75 0.66
Current Assets: 536.78 427.74
Total Assets: 1,532.62 1,318.61
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Profit & Loss A/c for Nine Months Ended
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---March 31--- 2007 2006
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Sales Net: 1,128.36 960.17
Gross Profit: 135.80 141.59
Trading Profit: 1.64 0.33
Other Income: 3.87 2.06
Operating Profit: 101.87 115.28
Financial Charges: (54.19) (60.25)
Profit before Taxation: 45.39 50.45
Profit after Taxation: 39.59 45.46
Earnings Per Share (Rs): 3.62 4.15
Share Price (Rs) on 25/06/2007: 24.00 -
Price/Earning Ratio: 6.62 -
Debt/Equity Ratio: 58:42 53:47
Current Ratio: 1.09 1.00
Gross Profit Margin (%): 12.04 14.75
Net Profit Margin (%): 3.50 4.73
R.O.A. (%): 2.58 3.45
R.O.E (%): 9.50 11.55
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COMPANY INFORMATION: Chairman: Shaikh Enam Ellahi; Managing Director (Chief Executive Officer): Shafqat Ellahi Shaikh; Director: Shahzad Ellahi Shaikh; Chief Financial Officer: Rizwan Ahmed Khan; Corporate Secretary: Syed Mohsin Gilani; Registered Office: Nagina House M.M. Alam Road Gulberg III Lahore 54660; Factory: Mouza Roosa Manga Mandi Raiwind Road, Tehsil & District Kasur.