STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated January  10, 2004

 

The KSE-100 index remained under pressure due to the perception regarding privatization of PSO. According to some analysts "The bottom line is that the market is trying to reach towards its exhaustion point on a short term basis". On a long term basis, the spread, volume and demand show no divergence and still point to higher prices.

 

 

 

 

FAZAL CLOTH MILLS

The company has posted Rs 92.4 million profit after tax for the year ending September 30, 2003 as compared to Rs 40.5 million profit for the last year. The increase in profit mainly came from growth in sales going up from Rs 2,363.7 million to Rs 2,820.3 million. Gross profit went up from Rs 263 million to Rs 319 million. However, a point of concern is persistent high financial charges. It amounted Rs 178.6 million for the year 2002 and Rs 124.6 million for the year under review. Another point pertaining to shareholders is that despite earning huge profit, the management of company distributes only nominal dividend among the shareholders. For example for the year 2002 out of Rs 52.6 million profit an amount of Rs 12.4 million was distributed as dividend. Similarly for the year 2003 out of Rs 92.5 million profit an amount of Rs 12.4 million was approved for distribution among the shareholders. It seems that the Board prefers to accumulate profit rather than distributing it among the shareholders. Un-appropriated profit as on September 30, 2003 was as high as Rs 325 million.

GULISTAN TEXTILE MILLS

The company has posted Rs 29.6 million profit after tax for the year ending September 30, 2003 as compared to Rs 25.4 million profit for the last year. Despite increase in sales gross profit for the year 2003 was lower then that of year 2002. Sales grew from Rs 2,436 million to Rs 3,057 million. As against this, cost of goods sold went up from Rs 2,103 million to Rs 2,719 million A point to be noted is that out of Rs 279 million operating profit an amount of Rs 224 million went towards financial charges. Even last year financial charges amounted to Rs 265 million. The Board of Directors approved distribution of 10% dividend among the shareholders amounting to Rs 12.6 million. The company had distributed Rs 9.5 million among the shareholders.

GULISTAN SPINNING MILLS

This company also seems to be a victim of out of proportion financial charges. The company has posted Rs 5.7 million profit after tax for the year ending September 30, 2003 as against Rs 9.6 million loss after tax for last year. Sales went up from Rs 692 million to Rs 701 million. Gross profit improved from Rs 67.2 million to Rs 78.5 million. Financial charges came down from Rs 54 million to Rs 47 million. Despite Rs 5.7 million profit after tax for the year 2003, the Board of Directors approved distribution of 7.5% dividend amounting to Rs 7.5 million. The company has not paid any dividend for the year 2002.

PARAMOUNT SPINNING MILLS

The company is yet another example of being the victim of out of proportion financial charges. The company posted Rs 76.2 million operating profit for the year ending September 30, 2003 out of which Rs 53.5 million went towards financial charges. For the year 2002 operating profit was Rs 88.8 million out of which Rs 70.3 million went towards financial charges. Sales for the year 2003 were higher compared to year 2002 but the hike in cost of goods sold led to even lower gross profit. Sales went up from Rs 803 million to Rs 934 million. As against this cost of goods sold grew from Rs 693 million to Rs 833 million. Operating expenses also went up from Rs 21 million to Rs 25 million. Profit after tax came improved from Rs 11.5 million to Rs 30.9 million. The Board of Directors approved distribution of 12.5% dividend among the shareholders for the year 2003 amounting to Rs 13 million.

AL-NOOR SUGAR MILLS

The company has posted Rs 74.5 million loss after tax for the year ending September 30, 2003. It has also posted Rs 119.5 million loss last year. The losses during these two years can mainly be attributed to higher financial charges, amounting to Rs 152 million for the year 2002 and Rs 120 million for the year 2003. The reduction in loss can be attributed to increase in sales and reduction in financial charges. Sales went up from Rs 1,054 million to Rs 1.292 million. Financial and other charges came down from Rs 152 million to Rs 120 million. However, high financial charges continue to be huge burden adversely affecting profitability of the company.

SHAHMURAD SUGAR MILLS

The company has posted Rs 82 million loss after tax for the year ending September 30, 2003. It has also posted Rs 152 million loss last year. The company has posted Rs 51 million gross profit for the year 2003 as against Rs 5 million gross loss for the year 2002. This improvement can be attributed to higher sales going up from Rs 993 million to Rs 803 million. However, high financial charges continue to be huge burden adversely affecting profitability of the company.

 

 

Company High  Low Closing Week's Turnover

Oil & Gas Deve.

53.50

52.70

53.50

235,243,500

P.T.C.L.A XD

37.25

36.60

37.25

137,452,000

Sui North GasXD

44.80

43.25

44.30

109,279,000

Sui South Gas

31.20

30.15

30.70

78,072,500

Hub Power XD

38.90

38.30

38.80

67,898,500

Engro Chem

97.95

96.60

97.00

66,164,600

Fauji Fert BinS

18.90

18.25

18.35

40,696,000

M.C.B.XD

53.40

52.20

52.95

18,014,400

Fauji Fert.

98.25

97.35

98.00

17,242,500

National Bank

54.00

53.60

53.70

15,850,000