Company Performance:

During the Fiscal Year 2016-217 the company achieved over all net sales revenue of 1.2 % compared to
last year. The increase in net sales revenue is mainly due to the increase in sales volume.

Cogs:

During 2016-2017 the cogs has increased by 1 % as compared to previous year and the major reason of
increase in cost of sales is increase in coal price.

GP:

The GP of the company has declined during the year to 46.6%, however it was 48.8 % and the major
reason is increase in Cost of sales.

Net profit:

The net profit of the company increased by 5.46 % as compared to previous year.

Dividend:

Taking into account and future planned investments the company announced divided of PKR 12/share
however it was PKR 10 in previous year.

Cash Flow:

The Board of directors is satisfied due to efficient and effective financial management system in place
and there are no short and long term financial constraints in near future.

In addition to above the company is also planning to use extra liquidity in channelized planned
investment projects in order to generate more revenues.

Market Share:

Being a big player in the market the company manages to get 17.7 % of total market.

Cost of production:

Though the cost of production of the company has increased by 1% the company still manages to keep it
as low as possible and it is lowest as compared to others in the industry.
Notes on Analysis:
Comments on six year Statement of Comprehensive Income analysis
Turnover
Revenues grew from PKR 33.3 billion in 2012 to PKR 45.7 billion in 2017 with an increase of 37.1%. This
is mainly due to increase in domestic sales volume and net retention.
Cost of Sales
Cost increased from PKR 20.6 billion in 2012 to PKR 24.4 in 2017 billion with an increase of 18.4%. This is
mainly due to increase in prices of fuel & power and raw material inputs.
Gross Profit
GP increased from PKR 12.7 billion in 2012 to PKR 21.3 billion in 2017 with an increase of 67.4%. This is
mainly attributed to use of efficient and cost effective alternative energy sources as well as utilization of
Waste Heat Recovery which curtailed power cost and lead to increase in GP.
Finance Cost

Currently there is no finance cost. Net Profit

Net Profit increased from PKR 6.78 billion in 2012 to 13.69 billion in 2017 with an increase of 101.9%. This
is mainly attributable to increased sales volumes as well as continuous performance improvement and
cost reduction initiatives.
 Ratio Analysis

Liquidity Ratios:
2016 Current ratio = current assets/current = 39395/9618 = 4.095
2017 Current ratio = current assets/current = 46368/10344 = 4.48
Company’s current ratio got increased in 2017 as compared to 2016 which is due to increase in current
assets.

Working Capital Ratio:

2016 Working Capital ratio = [CA-CL]/Sales = [39395-9618]/45135= 0.65
2017 Working Capital Ratio= [CA-CL]/SALES = [46368-10344]/45687 = 0.788
Company’s Working Capital ratio got better in 2017 as compared to 2016 which depicts that the
company’s position to pay of its current liabilities got much better as compared to previous year.

Cash Ratio:
2016 Cash Ratio = CASH & cash equivalents/total assets = 26806/85909 = 0.31207
2017 Cash Ratio = CASH & cash equivalents/total assets = 33738/97337 = 0.344
Company’s 2016 Cash Ratio got better in 2017 as compared to 2016 which depicts that the company’s
position to pay of its current liabilities got much better as compared to previous year.

Efficiency Ratios:
Inventory Turnover:
2016 Inventory turnover: Cogs/inventory = 3.3
2017 Inventory turnover: Cogs/inventory = 3.05
Days Sales in inventory:
2016 Days Sales in inventory = 365/inventory turnover = 365/3.3 = 110.6
2017 Days Sales in inventory = 365/inventory turnover = 365/3.05 = 119.67
Company’s days sales in inventory have gone up in 2017 as compared to 2016 and the major
contributor to it is Cogs and it went up because of increase in price of fuel/coal/raw material.
Total Assets Turnover:
2016 Total assets turnover Sales/Total Assets = 45135037/85909316 = 17.08
2017 Total assets turnover Sales/Total Assets = 45687043/97337365 = 15.04
Company’s assets turnover ratio reduced to down to 15.04 whereas it was 17.08 .though company’s
sales got increased but the reduction in ratio is due to the increase in assets.
Market Ratios:
Earnings per share
2016 EPS = [Net income – preferred dividend]/outstanding shares = 40.03
2017 EPS = [Net income – preferred dividend]/outstanding] shares = 42.34
Company’s earing per share got increased in 2017 to 42.34 as it was 40.03 in 2016.
Dividend Payout Ratio:
2016 Dividend Payout Ratio = dividend per share/EPS = 24.98%
2017 Dividend Payout Ratio = dividend per share/EPS = 28.34 %
The company’s dividend payout ratio has increased in 2017.
The company’s financial ratios results are satisfactory in all aspects and depicts perfect performance.