STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated June 12, 2004

 

Privatization Commission offered 5% shares of Pakistan International Airlines (PIA) with greenshoe option of another 5% at a price of Rs 20/share. According to a media reports the response has been encouraging, particularly from overseas Pakistanis. However, most of the analysts believe that response has been a little disappointing when compared with the response received in case of OGCL, SSGC and Bank Alfalah. They also say that the outcome was written on the wall due to earnings prospects as well as the quoted price of PIA shares. Even the last minute ditched effort to convince the general public, by announcing the probable dividend payout for the year ending June 30, 2004 did not help.

 

 

 

 

The KSE-100 index also came under pressure due to killings on June 10, 2004 in Karachi. The prospects of KSE-100 index crossing 6,000 level are getting bleaker with each passing day. The deteriorating law and order situation is not only a cause of concern for the people living in the city but can also adversely affect the whole process of economic revival in Pakistan.

SHAKARGANJ MILLS

The sugar mill located in Punjab has posted Rs 157.7 million profit for first half of ongoing financial year as compared to Rs 143.5 million profit for the corresponding period of last year. Sales grew from Rs 1,269.4 million to Rs 1,379.2 million. Along with this cost of goods sold also went up from Rs 1,022.2 million to Rs 1,132.4 million. Gross profit went down marginally, from Rs 247.2 million to Rs 246.8 million. The improvement in bottom line can be attributed to reduction in financial and other charges, going down from Rs 76.8 million to Rs 53.7 million. Financial charges came down from Rs 80.7 million to Rs 43.5 million. Other charges declined from Rs 16 million to Rs 10 million. As a results EPS went up from Rs 4.90 to Rs 5.38. The Board of Directors of the company in its meeting held on May 26, 2004 has given its 'in principle' go ahead for pursuing the merger/amalgamation of Crescent Ujala into Shakarganj Mills.

 

 

AL-ASIF SUGAR MILLS

The sugar mill located in Sindh has posted Rs 44 loss after tax for the first half of current financial year as against about Rs 25 million profit for the corresponding period of last year. The reversal in fortune can be attributed to decline in sales and hike in cost of goods sold. Sales came down from Rs 295.5 million to Rs 269.9 million. Cost of goods sold went up from Rs 244 million to Rs 289 million. Though the management succeeded in curtailing financial charges and containing losses. Financial charges came down from Rs 16 million to Rs 13.8 million. There are growing concerns about the 'ongoing' status of the company because accumulated losses exceeded one billion rupee as on March 31, 2004.

BHANERO TEXTILE MILLS

The company has posted Rs 50.8 million profit after tax for the first half of current financial year as compared to Rs 33.8 million for the corresponding period of last year. Sales went up from Rs 659 million to Rs 742 million. Cost of goods sold also went up from Rs 560.4 million to Rs 636.9 million. Gross profit grew from Rs 99 million to Rs 105 million. Operating expenses came down from Rs 27.3 million to Rs 20.6 mainly due to decline in financial charges. As a result of improved bottom line EPS went up from Rs 11.28 to Rs 16.94.

KOHINOOR INDUSTRIES

The company has posted Rs 15.7 million loss after tax for the first half of the current financial year as compared to Rs 54 million loss for the corresponding period of last year. It may look a little surprising because sales nearly halved. There are also growing concerns about the ongoing status of the company because accumulated losses were as high as Rs 1.4 billion as on March 31, 2004.

SHADMAN COTTON MILLS

The company has succeeded in reducing its loss after tax during the first half of current financial year. The loss after tax for the period under review has been reduced to Rs 7.3 million as against a loss of Rs 10.5 million for the corresponding period of last year. Despite increase in sales gross profit came down from Rs 85 million to Rs 74 million. This reduction in profit can be attributed to hike in cost of goods sold. However, reduction in financial charges helped in containing loss. Financial charges came down from Rs 43 million to Rs 31.6 million.

GULSHAN SPINNING MILLS

The company has posted Rs 13.4 million profit after tax for the current financial year as compared to a meager profit of Rs 2.6 million for the corresponding period of last year. There was increase in sales but benefit was eroded due to hike in cost of goods sold. Sales went up from Rs 819.5 million to slightly less than Rs 927 million. Cost of goods sold went up from Rs 730 million to Rs 829 million. Reduction in operating expenses and financial charges also helped in improving the bottom line.