Printer Friendly
The Free Library
22,710,190 articles and books

Textile sector: on Karachi Stock Exchange--2008.

There were 114 companies on the list of Karachi Stock Exchange in the Textile Sector (Spinning 65, Weaving 7 and Composite 42) in 2008. Of these we have listed Top 25 Textile companies according to Break-up Value during the year under review. The total Paid-up capital of these 25 companies stood at Rs.4,311.58 million. The following table illustrates the Top 10 companies according to Break-up Value of shares per Rs.10/- during the year under review.

It will be seen from the above table that almost all the companies showed decline in their Break-up Value over the previous year except Bhanero Textile and Indus Dyeing & Mfg. Ltd. The highest decline stood at 32.47 percent by Quetta Textile Mills Limited followed by 16.62 of Nishat Mills Limited and 12.91 percent by Island Textile Mills Limited. The Break-up Value of Bhanero Textile and Indus Dyeing & Mfg. Stood at Rs.303.28 and Rs.127.34 million in 2008.
Top 10 Companies According to Break-up Value

Company                         2008      2007      %Increase/
                                                     Decrease

Fateh Textile Mills Limited     1,204.84  1,207.58      (0.22)

Sapphire Fibres Limited           383.51    436.39     (12.11)

Bhanero Textile Mills Limited     303.28    284.47       6.61

Sapphire Textile Mills Limited    277.72    299.69      (7.33)

Island Textile Mills Limited      273.11    313.60     (12.91)

Ayesha Textile Mills Limited      208.67    214.23      (2.59)

Mahmood Textile Mills Limited     162.60    170.44      (4.59)

Nishat Mills Limited              157.38    188.77     (16.62)

Quetta Textile Mills Limited      132.44    196.13     (32.47)

Indus Dyeing & Mfg. Limited       127.34    126.76       0.45

(Rs. In million)


Sales

The total Sales of Top 10 companies stood at Rs.99146.35 million during the period under review. The following table of Top 10 Textile companies according to sales showed that all the companies exhibited up-word trend in their sales over the previous year. Crescent Textile Mills Limited showed highest increase of 54.35 percent from Rs.5730.39 million to Rs.8844.62 million, followed by 52.58 percent by Azgard-9 50.03 percent by Sapphire Textile and 19.67 percent by Gul Ahmed Textile Mills Limited.

Earning per Share

The total After tax Profit of these 20 companies stood at Rs.10359.37 million, whereas average Earning Per Share (EPS) of Rs,10/- each worked out to Rs.11.59. Sapphire Fibers Limited topped the list with its EPS at Rs.69.28 million, followed by Nishat Mills Limited 38.42 and Sapphire Textile Mills Limited 20.76.

The table given below showed that Nishat Mills showed an increase of 371.68 percent in its Pretax Profit from Rs.1356.20 million to Rs.6396.96 million during the period under review, followed by Kohinoor Textile Mills Limited of 362.35 percent, Fazal Cloth Mills Limited of 85.94 percent in its pretax profit from Rs.182.98 million to Rs.340.23 million during the same period under review.

Outlook

Textile Industry of Pakistan is indeed passing through a very crucial juncture due to the prevailing socio-economic and political climate. In particular, the Textile sector is exposed to extreme competition after the phasing out of quota besides facing resistance from developed countries in the name of Social Compliance, Environmental & Effluent Treatment Plants, Anti-Dumping, Counter-Veiling and Safeguard Accusations. To increase competitiveness and quality of products, textile industry requires investment in technology for meeting the new challenges. Over the last few years the textile sector has invested about US$ 6.0 billion in modernization and higher value addition, but due to continuous rise in cost of doing business resulting from enhancement in the cotton prices, utilities, inflation and bank refinancing rate on exports, Pakistan is becoming uncompetitive and loosing share in the international market.
Top 10 Textile Companies According to Sales - 2008

                                                   (Rs. In million)

                       Sales                     Pretax Profit

Company      2008       2007       %       2008       2007        %
                                 Change                        Change

Nishat     19,267.63  17,180.19   12.15  6,396.96   1,356.20   371.68
Mills
Limited

Gul Ahmed  11,725.85   9,798.33   19.67    201.83     262.19   (23.02)
Textile

Azgard -   10,113.49   6,628.34   52.58    999.50   1,151.45   (13.20)
9 Limited

Sapphire    9,769.32   6,511.53   50.03    670.60   1,296.18   (48.26)
Textile
Mills
Limited

Nishat      9,138.29   7,677.93   19.02     76.17     111.15   (31.47)
(Chunian)

Crescent    8,844.62   5,730.39   54.35    (42.76)    117.10      -
Textile
Mills
Limited

Chenab      8,506.91       -         -     (15.29)         -      -
Limited

Kohinoor    7,558.32     714.16    5.86    130.80     (28.29)     -
Textile
Mills
Limited

Indus       7,200.53   6,411.37   12.31    160.74     548.05   (70.67)
Dyeing &
Mfg. Co.
Ltd

Fazal       7,021.39   5,981.58   17.38    340.23     182.98    85.94
Cloth
Mills
Limited


Cost of doing business specifically for textiles is subject to a very high operating and financial leverage. It accounts for 18 per cent of the total credit disbursed in the economy. During the last recent years, our Country's economic scenario has adversely affected the viability of the textile industry and retarded its growth and sustainability. The investment made during the past 5 - 7 years by all sub sectors in textiles ranging from spinning, weaving, finishing and fabrication is under serious threat. It is to be noticed that there has been reduction of 12.86% in investment in Textile Machinery in terms of US Dollar this year as compared to the corresponding period last year. If inflation is also factored in, the drop in fresh investment in Machinery will be in the vicinity of 11% to 12%. This has all resulted because of the slow down in further investment in the Textile Industry due to high cost of capital borrowing and increased pressure from regional competition.

[ILLUSTRATION OMITTED]

Textile trade in the world is estimated to be around US$ 300 billion currently. Industry experts predict that by 2014 when the facilities in the West will close down and they will source their textiles from more efficient areas of the world resulting in the trade volume of around US$ 800 billion. Pakistan's share of the current trade volume is around 3.5%. If we are to maintain our current share of this larger pie, our textile exports alone are potentially targeted to reach US$ 28 billion.
Top 25 Textile Companies According to Break-up Value on KSE - 2008

S.No.             Companies              Year of    Year     Profit
                                         listing   Ending    Before
                                                              Tax

 1     Fateh Textile Mills Limited        1961    30-06-08     37.55

 2     Sapphire Fibres Limited            1990    30-06-08  1,296.18

 3     Bhanero Textile Mills Limited      1989    30-06-08     99.96

 4     Sapphire Textile Mills Limited     1974    30-06-08    670.60

 5     Island Textile Mills Limited       1973    30-06-08      3.22

 6     Ayesha Textile Mills Limited       1968    30-06-08    (65.00)

 7     Mahmood Textile Mills Limited      1973    30-06-08     50.08

 8     Nishat Mills Limited               1961    30-06-08  6,396.96

 9     Quetta Textile Mills Limited       1971    30-06-08     46.55

10     Indus Dyeing & Mfg. Limited        1963    30-06-08    160.74

11     Gulistan Textile Mills Limited     1968    30-06-08    124.37

12     Allawasaya Textile & Finishing     1968    30-06-08    (31.00)
       Mills

13     Blessed Textile Mills Limited      1991    30-06-08    115.68

14     Gadoon Textile Mills Limited       1994    30-06-08   (132.60)

15     Suraj Cotton Mills Limited         1988    30-06-08    156.00

16     Dewan Textile Mills Limited        1971    30-06-08   (212.00)

17     Dewan Mushtaq Textile Mills        1971    30-06-08      3.12
       Limited

18     Janana De Malucho Textile Mills    1962    30-06-08     19.43
       Ltd.

19     Sunrays Textile Mills Limited      1992    30-06-08     19.69

20     Shams Textile Mills Limited        1970    30-06-08    (28.00)

21     Din Textile Mills Limited          1991    30-06-08    132.36

22     Salfi Textile Mills Limited        1970    30-06-08     25.14

23     Paramount Spinning Mills Limited   1991    30-06-08     73.32

24     Dewan Khalid Textile Mills         1979    30-06-08    (72.00)
       Limited

25     Gul Ahmed Textile Mills Limited    1970    30-06-08    201.83

S.No.             Companies               Profit    Net Worth   Paid -
                                          After                   up
                                           tax                 Capital

  1    Fateh Textile Mills Limited           8.05    1,506.05     12.50

  2    Sapphire Fibres Limited           1,212.43    6,711.49    175.00

  3    Bhanero Textile Mills Limited        63.95      909.84     30.00

  4    Sapphire Textile Mills Limited      617.73    5,577.49    200.83

  5    Island Textile Mills Limited          1.38      136.55      5.00

  6    Ayesha Textile Mills Limited        (34.00)     292.14     14.00

  7    Mahmood Textile Mills Limited        (4.97)   1,623.58     99.84

  8    Nishat Mills Limited              6,138.96   25,147.18  1,597.85

  9    Quetta Textile Mills Limited         27.18      413.90     31.25

10     Indus Dyeing & Mfg. Limited          37.47    2,301.64    180.73

11     Gulistan Textile Mills Limited       52.79    1,999.23    160.54

12     Allawasaya Textile & Finishing      (25.00)      97.46      8.00
       Mills

13     Blessed Textile Mills Limited        64.62     761.81     64.32

14     Gadoon Textile Mills Limited       (164.00)  2,314.28    234.37

15     Suraj Cotton Mills Limited          136.80   1,404.96    180.00

16     Dewan Textile Mills Limited         213.00     950.66    135.04

17     Dewan Mushtaq Textile Mills          (8.12)    222.74     34.34
       Limited

18     Janana De Malucho Textile Mills       5.20     206.93     31.65
       Ltd.

19     Sunrays Textile Mills Limited         0.84     415.73     69.00

20     Shams Textile Mills Limited         (40.00)    510.90     86.40

21     Din Textile Mills Limited           181.80   1,073.04    185.30

22     Salfi Textile Mills Limited           3.61     183.86     33.42

23     Paramount Spinning Mills Limited     25.77     695.27    133.40

24     Dewan Khalid Textile Mills          (99.00)    289.54     56.82
       Limited

25     Gul Ahmed Textile Mills Limited     102.83   2,762.02    551.98

S.No.             Companies               Break    Dividend     Market
                                         upValue    %/Bonus     Rate
                                                                as on
                                                                31-12-09

 1     Fateh Textile Mills Limited       1.204.84        10.00  361.00

 2     Sapphire Fibres Limited             383.51        12.50  110.00

 3     Bhanero Textile Mills Limited       303.28        20.00  105.52

 4     Sapphire Textile Mills Limited      277.72    7.5/4.5SD   87.00

 5     Island Textile Mills Limited        273.11          NIL   80.00

 6     Ayesha Textile Mills Limited        208.67          NIL  170.98

 7     Mahmood Textile Mills Limited       162.60  40/50.2257B   49.90

 8     Nishat Mills Limited                157.38       25/50R   69.90

 9     Quetta Textile Mills Limited        132.44          NIL   51.30

10     Indus Dyeing & Mfg. Limited         127.34        10.00  194.06

11     Gulistan Textile Mills Limited      124.53         7.5B   21.60

12     Allawasaya Textile & Finishing      121.82          NIL   88.77
       Mills

13     Blessed Textile Mills Limited       118.44         7.50   39.57

14     Gadoon Textile Mills Limited         98.74          NIL   27.46

15     Suraj Cotton Mills Limited           78.05        15.00   26.25

16     Dewan Textile Mills Limited          70.39          NIL    4.90

17     Dewan Mushtaq Textile Mills          64.86          NIL    3.52
       Limited

18     Janana De Malucho Textile Mills      63.38          NIL    9.70
       Ltd.

19     Sunrays Textile Mills Limited        60.25          NIL   29.75

20     Shams Textile Mills Limited          59.13          NIL   17.51

21     Din Textile Mills Limited            57.90        10.00   27.21

22     Salfi Textile Mills Limited          55.00          NIL   12.62

23     Paramount Spinning Mills Limited     52.11         7.5B   11.74

24     Dewan Khalid Textile Mills           50.95          NIL    3.93
       Limited

25     Gul Ahmed Textile Mills Limited      50.00        10.00   27.00
COPYRIGHT 2010 Economic and Industrial Publications
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2010 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:Top 100
Comment:Textile sector: on Karachi Stock Exchange--2008.(Top 100)
Publication:Economic Review
Article Type:Statistical table
Geographic Code:9PAKI
Date:Apr 1, 2010
Words:1909
Previous Article:Sugar companies on Karachi Stock Exchange.
Next Article:Siemens in Pakistan.
Topics:

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters