Sugar & Allied Industries: AL-NOOR SUGAR MILLS LIMITED - Half Year Ended March 31 2007
The company was incorporated in August 1969 as a public limited company and it is listed on Karachi and Lahore stock exchanges. On June 25, 2007 the closing market value of the company's share was recorder at Rs 27.25 per share carrying 172.5% premium over the par value. During the last 52 weeks market value of the share continued to trend upward from Rs 18.50 per share to Rs 39.95 per share.
The principal activity of the company is manufacturing and sale of sugar and MDF (medium density fibre) Board. Its registered office is located in Karachi and manufacturing facilities are situated in Shahpur Jahania, District Nawabshah, (Sindh province).
The company's operating businesses are organized and managed separately according to specified products, it produces with each business segment representing each product. The sugar business segment is the manufacturing of sugar and board segment is the manufacture of MDF Board.
During the half year ended March 31, 2007 (HYM 06-07) Al-Noor Sugar Mills Ltd generated sales at Rs 1.082 billion (HYM-05-06: Rs 1.377 billion) showing sharp fall by 21.6 million as compared to the same period last year (SPLY).
While making sales analysis one interesting scenario emerges. The contribution of Board segment in total sales had dramatically improved which is good sign as diversity in business has increasingly become remunerative.
To elaborate further the information from the Directors Report is abstracted MDF Board plant produced 18,685 metric tons as against 13,765 metric tons of Lasani wood in various sizes. Lasani wood is the company's registered brand for MDF Board. The director reasoned that the demand of laminated products has increased considerably in the local market due to higher growth in the construction and building sectors of the economy.
As regards sugar business segment sugar remained the major contributor in the profit from operations. The company posted Rs 206 million as total profit from operation out of which Rs 145 million was contributed by sugar segment and Rs 61 million by Board segment.
Despite lower sales figure, the company's gross profit increased by Rs 18.4% in the period under review as compared to the same period last year (SPLY). To this income from trading activities (Rs 1.57 million) and share of profit of associated undertaking (Rs 5.5 million) were added.
In the expenses column, administration expenses increased by Rs 13 million and finance cost shot up by Rs 11.93 million during the period under review (HYM - 06-07) as compared to SPLY.
However its bottom line before tax profits was higher at Rs 129.7 million as compared to Rs 116.4 million in SPLY.
But larger tax provision in the period under review, lowered its profit after tax at Rs 108.5 million as compared to Rs 116.9 million in SPLY.
During the period position of sugarcane supply improved considerably due to timely rain. During the cane crushing season 2006, crushing was done for 146 days as against 126 days last season 2005.
========================================================
Performance Statistics (Mln Rs)
========================================================
Balance Sheet ---As At--- March 31 September 30
2007 2006
========================================================
Un-audited Audited
========================================================
Share Capital paid-up: 185.70 185.70
Reserves & Surplus: 472.97 368.04
Shareholders Equity: 658.67 553.74
Surplus on Revaluation: 355.65 369.29
L.T. Debts: 198.06 145.04
L.T. Deposits: 5.26 5.03
Deferred Liabilities: 297.51 277.54
Current Liabilities: 1,775.09 723.02
Fixed Assets Tangible: 1,512.72 1,472.95
L.T. Investments: 15.43 8.61
L.T. Deposits: 11.79 10.74
Current Assets: 1,750.30 581.36
Total Assets: 3,290.24 2,073.66
--------------------------------------------------------
Profit & Loss A/c for Half Year Ended
--------------------------------------------------------
---March 31--- 2007 2006
--------------------------------------------------------
Sales: 1,081.78 1,377.33
Gross Profit: 268.90 227.14
Profit from Trading Activities: 1.57 1.01
Other Operating Income: 0.70 5.65
Finance (Cost): (74.92) (62.99)
Share of Profit Associated
Undertaking: 5.45 0.61
Profit Before Taxation: 129.71 116.44
Net Profit After Taxation: 108.50 116.91
Earnings Per Share (Rs): 5.84 6.30
Share Price (Rs) on 25/06/2007: 27.25 -
Price/Earning Ratio: 4.67 -
Debt/Equity Ratio: 16:84 13:87
Current Ratio: 0.99 0.80
Gross Profit Margin (%): 24.86 16.49
Net Profit Margin (%): 10.03 8.49
R.O.A. (%): 3.30 5.64
R.O.E. (%): 16.47 21.11
========================================================
COMPANY INFORMATION: Chairman, Managing Director & Chief Executive Officer: Ismail H. Zakaria; Director: Suleman Ayoob; Chief Financial Officer: Zohair Zakaria; Company Secretary: Mohammad Yasin Mughal FCMA; Registered Office: 96-A Sindhi Muslim Society, Karachi-74400; Website URL: - Factory: Shahpur Jahania, P.O. Noor Jahania Taluka Moro District Nawabshah (Sindh).