By SHABBIR H. KAZMI
Updated June 02, 2001

At the back of higher daily trading volume the KSE-100 index recovered by 2.4 per cent. WorldCall emerged to the volume leader. PTCL improved only due to lower trading volume.

Many members of the Karachi Stock Exchange were opposed to T+3 system and inclusion of some companies was delayed. Surprisingly, they have approved a very adventurous schedule to bring all the listed companies under T+3 system. However, it was not without demanding permission for forward trading. While the world is going towards T+3 system, we are still moving in circles.

While textile companies had paid exceptionally high dividend for the last year, it was also apprehended that they would not be able to replicate this for the year ending September 30, 2001. Half yearly results, for the period ending March 31, 2001, have started pouring in and apprehensions seems to be coming true, to a large extent.

KOHINOOR INDUSTRIES

The Company has posted nearly half a million rupee loss before tax for the six-months period ending March 31, 2001. It had registered Rs 148.6 million profit before tax for the corresponding period of last year. Not only that sales came down in 2001, gross margin reduced from 19 per cent for the year 2000 to 14 per cent for the period under review. Another fact was the decline in other income — from Rs 123 million to Rs 13.7 million. However, the Company was able to bring down financial charges, from Rs 85 million to Rs 71.4 million during this period. Since cotton prices have remained higher, as compared to the previous year, the full year earnings are expected to be substantially lower for the year ending September 30, 2001.

APOLLO TEXTILE MILLS

The Company has registered Rs 0.567 million profit after tax for the six-months period ending March 31, 2001 as compared to a profit of Rs 15 million for the corresponding period of last year. The situation had been much worse had the company not earned Rs 18.5 million 'other income'. Financial charges for the year 2000 were nearly Rs 65 million as against that of Rs 40.3 million for the corresponding period of previous year. Another reason for the massive decline in profit was reduced gross margin. While administrative expenses went up, the management was able to curtail selling and distribution expenses.

NAKSHBANDI INDUSTRIES

Not only that the Company was able to increase sales, the management was also able to improve gross margin. Gross profit for six-months period ending March 30, 2001 was Rs 102.7 million as against a profit of approximately Rs 78 million for the corresponding period of last year. However, it was not possible without incurring higher administrative and marketing expenses. The Board of Directors has recommended to issue 100 per cent Right Shares at Rs 17.00 per share — including Rs 7.00 premium.

DEWAN TEXTILE MILLS

The Company has posted Rs 24.7 million profit before tax for the six-months period ending March 31, 2001 as compared to a profit of Rs 79.6 million for the corresponding period of previous year. Gross margin reduced from nearly 20 per cent to 15.5 per cent during this period. While the Company was able to contain financial charges, the increase in cost of goods sold, general selling and distribution expenses kept profit low. Another reason for lower profit was virtually no other income during 2001, whereas the amount under this head exceeded Rs 38 million for the corresponding period of last year.

DEWAN MUSHTAQ TEXTILE MILLS

The Company has posted Rs 13 million profit after tax for the six-months period ending March 31, 2001 as against a profit of Rs 21.7 million for the corresponding period of last year. The difference seems to be only because of virtually no other income during 2001, the Company had earned Rs 7.3 million under this head during corresponding period of 2000. While gross margin reduced in 2001, operating expenses went up affecting profit adversely.

YOUSAF WEAVING MILLS

Sales of the Company improved during six-months period ending March 31, 2001, but higher cost of goods sold reduced gross profit. Gross margin came down from over 12 per cent for the year 2000 to 9.8 per cent for the period under review. The other factors resulting in lower profit were: increase in operating expenses and financial charges. Other income also went down by about 25 per cent as compared to previous year.

FATEH TEXTILE MILLS

Despite a decline in sales, profit after tax for the six-months period ending March 31, 2001 was Rs 73 million as compared to that of about Rs 32 million for the corresponding period of previous year. While the gross margin was more or less at previous year's level, the efforts to control administrative and selling expenses and financial charges yielded better result. Earning per share improved from Rs 25.66 for the year 2000 to Rs 58.47 for the year 2001.

MOVEMENT AT A GLANCE
SCRIP	HIGH (Rs.)	LOW (Rs.)	CLOSING  PRICE	TURNOVER  (SHARE MN)
PTCL	18.40	17.80	18.25	42,435,000
Hubco	20.60	20.20	20.20	40,337,000
MCB	26.65	24.85	26.20	19,186,000
Engro	58.95	56.95	57.50	17,247,700
FFC Jordan	5.15	4.65	5.10	6,407,000
Fauji Fertilizer	44.65	43.10	43.8	1,639,700
Askari Bank	13.25	12.45	13.10	1,154,000
Bank AL Habib	15.50	15.00	15.30	209,000