Professional Documents
Culture Documents
industry in
Pakistan is
the
largest manufacturing
industry in Pakistan.
It
has
traditionally, after agriculture, been the only industry that has generated huge employment for both
skilled and unskilled labor. The textile industry continues to be the second largest employment
generating sector in Pakistan. Pakistan is the 8th largest exporter of textile products in Asia. This
sector contributes 8.5% to the GDP and provides employment to about 15 million people or roughly
30% of the 49 million workforce of the country. Pakistan is the 4th largest producer of cotton with the
third largest spinning capacity in Asia after China and India, and contributes 5% to the global
spinning capacity.[1] At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning
units and 425 small units which produce product of textile
The Textile Industry is dominated by Punjab. 3% of United States imports regarding clothing and
other form of textiles is covered by Pakistan. [2] Textile exports in 1999 were $5.2 billion and rose to
become $10.5 billion by 2007. Textile exports managed to increase at a very decent growth of 16%
in 2006. In the period July 2007 June 2008, textile exports were US$10.62 billion. Textile exports
share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other
textile sectors grew.[citation needed] The major reason of decline of textile export of Pakistan is the Govt
unhealthy policies. Sui Northern Gas Pipelines Ltd. (SNGPL) notified the textile mills to reduce the
supply of gas for five months. Head of All Pakistan Textile Mills Association of Enterprises Anis-ulHaq has expressed concern about the decision: "Now is the time to the textile industry out of a threeyear downturn. The demand for textile products is growing, and if we are not able to fulfill our current
orders, we will lose international buyers. "Monthly loss the textile industry because of interruptions in
gas supply could reach about U.S. $1 billion, or 4 $5 billion for the fiscal year ending June 20 next
year The archaeological surveys and studies have found that the people of Harappan
civilization knew weaving and the spinning of cotton four thousand years ago. Pakistan Exports to:
China is Cotton: $1.9 billion USA is other textiles, worn clothing: $1.3 billion Germany are other
textiles, worn clothing: $236.1 million, Clothing (not knit or crochet): $210.2 million France are other
textiles, worn clothing: $123.9 million, clothing (not knit or crochet): $80.3 million UK are Other
textiles, worn clothing: $473.2 million, Knit or crochet clothing: $301.3 million, Clothing (not knit or
crochet): $247.6 million, Cotton: $96.1 million Other countries like Itlay, Russia, Spain, Brazil,
Canada, India, Mexico, Australia, South Korea and Netherland. Among these Chine is the second
largest buyer of Pakistani textiles.Nowadays textile sector of Pakistan is facing industrial crises due
to worldwide policies and govt policies as well the export of three quarter of current year 2016
reduces ud$:831 million and 8.15% from last year, only finished goods export increases with 4.20%
and towel export rose up with minor change of .20% of total export. otherwise all other sector
including cotton, spinning, weaving and knitting sector are going downward from previous year. The
major problem of this declining is the huge reduction of cotton production in the current year due to
crop disease. The production of last year was 14.86 million bales which are reducing this year and
reached at 11.7 million bales.But Know govt in involve to reforms the industry and looking forward
the sowing position of cotton.
Textile
1.50
industry
.
Quick
ratio
Debt
quity
0.62
1.48
to Sales to Profit
inventory margin
6.05
1.64
Log of asset:
Gul Ahmed textile
7.396954728
NISHAT textile
8.004922949
LOG OF SALE:
GUL
AHMED NISHAT TEXTILE
TEXTILE
7.523158133
7.70907972
{GUL Ahmed
limited}
textile
mills
Profitability ratio
1: Net profit margin
Net income
items/net sales
2015
2014
1.8
3.74
before
interest
2013
2.35
and
2012
(0.96)
non-controlling
2011
4.70
4.7
3.74
2.35
2011
-0.96
2012
2013
1.8
2014
2015
2015
3.46
2014
3.83
2013
4.08
2012
3.53
2011
3.84
Series 1
Series 1
4.08
3.84
3.83
3.53
2011
2012
3.46
2013
2014
2015
Return on asset:
2015
6.28
Series 1
18.7
14.35
9.6
6.28
2011
-3.4
2012
2013
2014
2015
2011
10.35
Series 1
10.35
7
8.05
6.34
5.51
2011
2012
2013
2014
2015
2014
3.62
2013
4.32
2012
3.70
2011
3.59
Chart Title
Series 3
4.32
3.59
2011
3.7
2012
3.62
2013
2014
3.4
2015
2011
18.19
Chart Title
Series 3
18.1
18
13.9
2011
2012
18
15
2013
2014
2015
2012
(2.62)
2011
14.39
12
10
8
10.21
6
4
4.37
4.3
2
0
Category 1
Category 2
-2.61
Category 3
Category 4
-2
-4
Column1
Return on asset
Net income/avg total asset
2015
6.28
2014
14.35
2013
9.60
2012
(3.40)
2011
18.07
Chart Title
Column1
18.07
14.35
9.6
6.28
2011
-3.4
2012
2013
2014
2015
2011
3.97
Chart Title
Series 3
4.33
4.3
3.97
3.86
3.69
2011
2012
2013
Interpretation
2014
2015
of
ratio
Liquidity ratio
Current ratio:
Current asset/current lability
2015
2014
2013
2012
1.05
1.06
1.05
0.99
2011
1.03
Chart Title
Column1
1.05
1.06
1.05
1.03
0.99
2011
2012
2013
2014
2015
Quick ratio:
Current
liability
asset-inventory/
2015
0.25
2013
0.27
2014
0.20
2012
0.23
current
2011
0.19
Chart Title
Column2
27
23
20
19
0.25
2011
2012
2013
2014
2015
Chart Title
Column1
Column2
2
25
20
20
16
9
2011
2012
2013
2014
2015
2014
37.08
2013
45.34
2012
-256.2
Liquidity
2011
60.2
Ratios:
GULAHMED
=51.82 Days
A/R turnover=Net sale/average gross receivable
=33012724/2343759
=14.08 Times
A/R turnover in days=average gross receivable/net sale
per day
=2343759/90445
=25.91 Days
Days sale in inventory=ending inventory/cost of goods
sold per day
=8658343/74073
=116 Days
Inventory turnover=cost of goods sold/average
inventory
=27036675/10728839
=2.52 Times
Inventory turnover in days=avrg inventory/CGS per day
=10728839/74073
=144.84 days
0perating cycle=A/R turnover in days+ inventory
turnover over in days
=25.91+144.84
=170.75 Days
=3678668/91382
=40 Days
A/R turnover=Net sale/average gross receivable
=33354784/1839334
=18.13 Times
A/R turnover in days=average gross receivable/net sale
per day
=1839334/91382
=20.12 days
Days sale in inventory=ending inventory/cost of goods
sold per day
=8970687/74686
=120 Days
Inventory turnover=cost of goods sold/average
inventory
=27260395/11600168
=2.35 Time
Inventory turnover in days=avrg inventory/CGS per day
=11600168/74686
=155 .31 Days
0perating cycle=A/R turnover in days+ inventory
turnover over in days
=20.12+155.31
=175.43 Days
Market ratio
Gul Ahmed Textile Mills limited;
Market
Ratio
F.L=
EBIT/EBT
2015
2014
2013
2012
2011
2117616000
/783327000
= 2.7 Times
604943000/
228522772
= 2.647
2658827000/
1495977000
= 1.77 Times
123500000/1
82818218
= 6.75
2068648000
/841128000
= 2.45 Times
702078000
/152348515
= 4.60
1374046000
/(1417000)
=
(240364000)
/126957079
= (1.89)
2635435000/
1537454000
= 1.72 Times
1196457000/
634785000
= 1.88
%
R/E
ratio=
R.E/N.I
Dividend
P/O ratio =
Div/N.I
261943000/
604943000
= 0.43
343000000/
604943000
= 56.60 %
1154000000/
1235000000
= 0.934
81000000/
1235000000
= 6.56 %
702078000/
702078000
=1
0/
702078000
=0%
0/
(240364000)
=0%
1196457000/
1196457000
=1
0/
1196457000
=0%
Dividend
yield
=
dividend
per share/
Mkt
price
per share
1.50/49.05
= 0.03
1.50/64.01
= 0.02
0/23.74
=0
0/21.11
=0
0/51.73
=0
Book value
per share =
T.S.H.E-p.s
Equity/# of
share c.s
7169472000
-0/
228522772
=31.37 RS.
66599030000/ 182818218
=36.42 RS.
5616834000
-0/
152348515
=36.86 RS.
4472509000
-0/
126957096
=35.22 RS.
47128730000/ 634785000
=74.24 RS.
EPS=
N.I/ # of c.s
outstandin
g
-1
(profitability ratio)
Net profit margin
Profit after tax/net sales
2015
2014
2013
2012
7.64
10.12
11.15
7.85
2011
9.97
Chart Title
Column1
11.15
9.97
10.12
7.85
2011
2012
7.64
2013
2014
2015
Interpretation:
Net profit margin ratio decreased to 7.64 in 2015 as compare to
9.97 in 2011. It show ratio decreases by 2.33. that shows the
decrease co. profit.
Interpretation:
2011
0.96
Return on asset
Net income/avg total asset
2015
2014
2013
2012
4.0
6.20
8.5
6.37
2011
1.040
Chart Title
Column1
8.5
6.37
6.2
4
1.04
2011
2012
2013
2014
2015
Interpretation:
Return on operating asset
Net sales/avg operating asset
2015
2014
2013
2012
2011
1.04
1.04
1.21
1.29
1.48
Chart Title
Column2
1.48
2011
1.29
2012
1.21
2013
1.04
2014
1.04
2015
2011
3.86
Chart Title
Column1
3.86
3.25
3.5
2.82
2.16
2011
2012
2013
2014
2015
Return on asset
Net income/ avg total asset
2015
2014
2013
2012
2011
4.0
6.20
8.5
6.3
9.6
Chart Title
Column1
8.5
6.3
6.2
4.3
2011
2012
2013
2014
2015
2011
14.50
Chart Title
Column1
12.09
9.64
8.64
5.5
2011
2012
2013
2014
2015
contr/
avg
2011
1.88
Chart Title
Column1
2.14
2.27
1.88
1.5
1.3
2011
2012
2013
2014
2015
2014
14.44
itability
of
financial
year
profitability
of
2014. Profitabili
2013
17.25
2012
15.11
2011
16.15
the
Company
has
decreased
during
ended
30
June
2015
as
compared
to
corresponding
last
year
ended
30
the
the
June
Liquidity ratio
Current ratio:
2015
2014
1.26
1.33
2013
1.49
2012
1.3
2011
1.20
Chart Title
Column1
1.3
1.2
2011
2012
1.49
2013
1.33
2014
1.26
2015
Quick ratio:
2015
0.65
2014
0.70
Cash to liability:
2015
2014
_
0.27
2013
0.81
2012
0.6
2011
0.5
2013
0.41
2012
0.4
2011
0.23
2014
2013
2012
2011
7.5
5.9
9.5
15.56
Chart Title
Column1
Series 3
15.56
9.5
5.9
2011
2012
2013
7.5
2014
8.35
2015
Chart Title
Column1
16.15
2011
15.11
2012
17.25
2013
14.44
2014
11.77
2015
=2623460/111558
=23.51 Days
Inventory turnover=cost of goods sold/average inventory
=40718697/7952870
=5.12 Times
Inventory turnover in days=avrg inventory/CGS per day
=7952870/111558
=71.28 Days
0perating cycle=A/R turnover in days+ inventory
turnover over in days
=9.23+71.28
=80 days
Inventory
inventory
=18.75 Days
turnover=cost of
goods
sold/average
=56580317/14397027
=3.93 Time
Inventory turnover in days=avrg inventory/CGS per day
=14397027/155014
=92.87 Days
0perating cycle=A/R turnover in days+ inventory
turnover over in days
=7.82+92.87
=100 Days
Market
limited
ratio
by
nishat
mills
= 40.44%
Dividend Yield = Dividend per share/ Market price per share
= 4.50/114.23
= 3.99%
Book value per share = Total stockholders equity/ # of common
stock outstanding
= 76,142,823,000/ 351,599,848
= 216.56
Price earnings Ratio = Market price per share/ EPS
= 114.23/11.3
=10.10%
Leverage Ratio= EBIT/ Earning before tax
Year 2014 (PRs. in Thousands)
EBIT= 7,585,434
Profit before tax = 5,975,552
=7,585,434/5,975,552
= 1.26.%
Earnings per share =Earnings available for common stock/ #of
common stock outstanding
= 5,512,552,000/ 351,599,848
=15.68
% of retained earnings= Net income Dividends/ Net income
=5,512,552,000-1406399392/5512552000
=74.48%
Dividend payout Ratio= Dividend/ Net income
= 1406399392/5512552000
= 25.51%
Dividend Yield = Dividend per share/ Market price per share
= 4.00/ 111.92
= 3.57%
Book value per share = Total stockholders equity/ # of common
stock outstanding
= 68,589,176,000/ 351,599,848
= Rs. 195.07
Price earnings Ratio = Market price per share/ EPS
= 111.92/ 15.68
= 7.13
Leverage Ratio= EBIT/ Earning before tax
Year 2012 (PRs. in Thousands)
EBIT= 5,842,110
Profit after tax = 3,528,567
= 5,842,110/ 3,528,567
= 1.6%
Earnings per share =Earnings available for common stock/ #of
common stock outstanding
= 3,528,567,000/ 351,599,848
= 10.03
% of retained earnings= Net income Dividends/ Net income
= 3,528,567,000- 1230599468/
3,528,567,000
=65.12%
Dividend payout Ratio= Dividend/ Net income
= 1230599468/ 3,528,567,000
=34.87%
Dividend Yield = Dividend per share/ Market price per share
= 3.5/47.58
= 7.35%
Book value per share = Total stockholders equity/ # of common
stock outstanding
= 37,762,749,000/ 351,599,848
= 107.40
Price earnings Ratio = Market price per share/ EPS
= 47.58/ 10.03
= 4.74
Leverage Ratio= EBIT/ Earning before tax
Year 2011 (PRs. in Thousands)
EBIT= 7,012,960
Profit before tax= 4,843,912
= 7,012,960/ 4,843,912
= 1.4%
Earnings per share =Earnings available for common stock/ #of
common stock outstanding
= 4,843,912,000 / 351,599,848
= 13.77
% of retained earnings= Net income Dividends/ Net income
= 4,843,912,000 1160279498/
4,843,912,000
= 76.04
Dividend payout Ratio= Dividend/ Net income
= 23.95%
Dividend Yield = Dividend per share/ Market price per share
= 3.30/ 50.34
= 6.55
Book value per share = Total stockholders equity/ # of common
stock outstanding
= 35,393,959,000/ 351,599,848
= 100.66
Price earnings Ratio = Market price per share/ EPS
= 50.34/13.77
=3.65
Trend analysis:
921504
7
157283
00
249433
47
838130
3
158959
04
242772
07
9.94766
6
1.05438
2.74389
1
2014
% change
Sales
33355
33013
1.0359555
gross profit
6094
5976
1.9745649
operating profit
2118
2659
-20.345995
783
1496
-47.660428
605
1235
-51.012146
2015
2014
Column4
property.
24357269
22964388
6.06539569
51960454
44771715
16.0564298
631833
537482
17.5542623
store .spare
1335763
1316479
1.46481638
stock in trade
10350193
12752495
-18.837898
2189860
3227560
-32.151223
other.current
10314628
11478458
-10.139254
total asset
101140000
97048577
4.21585058
shareholder equity
76142823
68589176
11.0128849
5582220
6431304
-13.202361
deffered tax.
247462
474878
-47.889353
11524143
14468124
-20.348049
current portion of ..
1783250
1595652
11.7568242
5860102
5489443
6.75221512
101140000
97048577
4.21585058
current asset
current liability
Interpretation:
RECOMMENDATION:
When we talk about issues and evaluate them, we see that these
are not new; they have been in existence since a very long time
and relate to fundamentals of the textile business The time now is
to address questions like why our Industry is vulnerable to these
cyclical downturns, why can't we sustain growth and economic
performance on a sustainable basis. We need to chalk down a
strategy to diagnose and solve issues with a long-term
perspective to meet the challenging tasks of the textile sector.
Furthermore, APTMA being the largest and well organized
institution has the ultimate
responsibility to help facilitate an environment and socioeconomic climate necessary for the positive performance and
viability of member mills. The need of the hour for APTMA is to
address these issues.
The gas tariffs for textiles units should be freezed at the current
level for
at least next 3-5 years.Coal based power generation to be
explored on a priority basis, utilizing the abundant availability of
coal reserves.
The import of electricity is an option even for short/medium term,
to meet the high growth rates of demand in the country. Thermal
SMEs Promotion