STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated June 07, 2003

 

During the week the KSE-100 index touched yet another highest level of 3,158 points. However, the profit taking was obvious. Some major activity was witnessed in Bosicar Refinery, D. G. Khan Cement, Dewan Motors and Adamjee Insurance Company. Though, the sentiments were bullish the ongoing tussle on LFO remained a serious concern. Release of Pakistan Economic Survey further supported the government's rhetoric about revival of economy.

 

 

 

The export target but meeting revenue target may not be easy. Federal Budget for financial year 2004 will be aimed at providing new impetus to accelerate GDP growth rate. A larger allocation for public sector development is expected to improve per capita income and help in poverty alleviation.

NISHAT MILLS

Reprofiling of debt has helped the company in improving its bottom line. The reduction in financial charges improved has improved profit after tax. The company has posted Rs 192 million profit before tax for the quarter ending March 31, 2003 as compared to a profit of Rs 59 million for the corresponding period of last year. The investment in value addition has also helped in increasing sales. For the nine months period sales were Rs 6,732 million as compared to turnover of Rs 5,621 million for the corresponding period of last year. Gross profit declined from Rs 1,030 million to Rs 996 million. Reduction in financial charges from Rs 574 million to Rs 381 million improved profit before tax, going up from Rs 107 million to Rs 287 million. Despite this significant improved the Board of Directors did not recommend payment of any interim dividend.

KOHINOOR TEXTILE MILLS

The company was able to double its sales by March 31, 2003 as compared to turnover for the corresponding period of last year. Sales grew from Rs 581 million to Rs 1,361 million. Consequently gross profit also improved from Rs 78 million to Rs 165 million. Sales for the nine months period also doubled, going up from Rs 1,168 million to Rs 2,442 million. However, the benefit was partly eroded due to increase in operating expenses and financial charges and decrease in other income. Operating expenses went up from Rs 89 million to Rs 132 million. Financial charges grew from Rs 120 million to Rs 164 million. Other income came down from Rs 56 million to Rs 26 million. The company has posted Rs 32 million profit after tax for the nine months period of ongoing financial year as against a loss of Rs 7.4 million for the corresponding period of last year. The EPS remained as low as Rs 0.40 but certainly improved from a negative Rs 0.14.

 

 

SHAHTAJ SUGAR MILLS

Higher gross profit and reduction in financial charges has helped the company to improve its bottom line. Profit after tax for the six months period improved from Rs 61 million to Rs 92 million. The Board of Directors also approved distribution of 25% interim dividend. The company also announced 25% interim at the time of release of half yearly result last year. As a result of increase in sales, going up from Rs 799 million to Rs 896 million, gross profit improved. Reduction in financial and other charges, from Rs 30 million to Rs 17.5 million further improved the bottom line. This improvement can be attributed to bumper sugarcane crop in the Punjab province.

MIRPURKHAS SUGAR MILLS

Higher sugarcane prices and glut of sugar supply have caused losses to sugar mills located in Sindh province. While there was a decline in sales, the company was able to bring down its losses through better cost controls. Sales came down from Rs 297 million to Rs 258 million. Cost of sales declined from Rs 346 million to Rs 248 million. As a result the company posted Rs 10.5 million gross profit as against a gross loss of Rs 50 million for the corresponding period of last year. The increase in other income also helped in improving the bottom line. The company has posted Rs 29 million loss after tax during the six months period ending March 31, 2003 as compared to a loss of 92 million for the corresponding period of last year. The prevailing over supply of sugar will keep the prices low and affect profitability of sugar mills in general and the mills located in Sindh in particular unless the GoP comes up with a comprehensive sugar policy.

GADOON TEXTILE MILLS

Profit after tax of the company for the six months period ending March 31, 2003 was reduced to half as compared to the profit for the corresponding period of last year. Though the company was able to post higher sales, gross profit declined from Rs 214 million to Rs 193 million. This decline can be attributed to increase in cost of goods sold. The bottom line was further eroded due to increase in operating expenses and financial charges. The company seems to have further boosted its exports because provision for tax came down from Rs 30 million to Rs 18 million. Though the company has over Rs 1,344 million accumulated reserves, the Board of Directors did not recommend distribution of any interim dividend.

MOVEMENT AT A GLANCE

SCRIP

HIGH
(Rs.)

LOW
(Rs.)

CLOSING 
PRICE

TURNOVER
 (SHARE)

P.T.C.L.A

26.20

25.85

26.15

131,002,500

D.G.K.Cement

21.30

20.20

21.30

99,589,500

Dewan Motors Ltd

23.50

18.30

23.50

90,212,500

Bosicor Pak

18.80

16.00

18.80

79,666,500

Hub Power

35.20

34.90

35.20

65,554,000

National Bank

26.70

25.45

26.70

36,816,500

Sui North Gas

32.10

31.90

31.90

31,992,000

Adamjee Ins

54.60

48.60

54.60

21,529,000

M.C.B.

36.45

35.40

36.40

16,287,000

Sui South Gas

21.00

20.15

20.40

7,993,500