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LUCKY BARE CEMENT This record studies BLESSED CEMENT like a target against other companies studied as a basis for equivalent analysis in the industry. Lucky Concrete is the largest cement manufacturer in Pakistan and its approaching expansion in Karachi will take its ability from 6th. 5mntpa to 9mntpa, further cementing their spot since the market head.
Lucky Bare cement Limited was incorporated in Pakistan upon September 18, 1993 beneath the Companies Ordinance, 1984 (the Ordinance). The shares in the company are quoted on all the 3 stock exchanges in Pakistan.
The Company in addition has issued GDRs which are outlined and traded on the Professional Securities Market of the London Stock Exchange. ORGANIZATION PROFILE SECTOR: Cement Market PRODUCTS AND SERVICES: Lucky Cement aims at producing bare cement to suit every single user. The next types of cement are available: ORDINARY PORTLAND CEMENT (OPC) Ordinary Portland cement comes in darker hue as well as in light shades in Lucky Celebrity with different brand names to suit the requirement of users. SULPHATE RESISTANT BARE CEMENT (SRC)
Sulphate resistant Cement’s best quality is to provide effective and durable strength against sulphate problems and is incredibly suitable for constructions near sea shores as well as for canals linings. It provides very effective protection against alkali attacks. The business currentlyproduces five brands: * Lucky Bare cement * Blessed Star 5. Lucky Gold * Chief * Luckysulphate resistant cement(SRC) CUSTOMERS AND END MARKET SEGMENTS Lucky Concrete aims at generating cement to accommodate every user.
At present, it can be producing Grey Portland Concrete and also Sulphate Resistant concrete. The customers are able to get Portland bare cement both in dark shade in light hue with different brandnames to suit the requirement of user. The Portland bare cement specifically created for prefabrication industry with a reduced setting period is also offered. In addition , the rose also generate Slag bare cement for certain users. CIRCULATION CHANNELS Sellers, retailers and block creators are the essential part of Blessed Cement’s sales strategy.
This kind of strong network of more than 2 hundred dealers, located at tactical locations through the entire country, has enabled the corporation to create an impressive distribution system and entry to markets at even the remote parts of the country. ECONOMICAL PROFILE | | 30-Jun| 30-Jun| 30-Jun| 30-Jun| | | 2008| 2009| 2010| 2011| | | Restated| PKR| Reclassified| PKR| Major Profit Margin| 25. 69%| 37. 26%| 32. 55%| 33. 48%| EBITDA Margin| 23. 91%| 31. 77%| 23. 07%| 25. 87%| EBIT Margin| 18. 14%| 27. 41%| 17. 31%| 19. 83%| Net Income Margin| 15. 79%| 17. 45%| 12. 08%| 15. 26%| Return on Invested Capital| 9. 06%| 19. 2%| 11. 17%| 12. 63%| Return On Equity| 13. 35%| 19. 77%| doze. 50%| 13. 29%| Go back On Assets| 7. 82%| 11. 97%| 8. 18%| 9. 63%| Leverage Ratio| 3. 84%| 1 . 82%| 2 . 33%| 1 . 99%| Debt to perform capitalization| forty-five. 51%| 39. 43%| thirty four. 49%| 32. 60%| SUCCESS The profitability of the company is quite decent, and shows an upward trend, which can be found by the financial ratios from the firm. There was a slight drop in the year 2010, but then elevated considerably in year 2011. This was largely due to the decline in the cost of development for Blessed Cement (decrease in the expense of raw materials).
The prospective customers of the organization are bright, which are proven by large net income perimeter and return on invested capital percentages. GROWTH ACCOUNT Lucky Concrete is growing at a fast pace, as the overall concrete industry is facing a desirable scenario, which is also demonstrated simply by high return on value and come back on resources ratio. The business is also spending its collectors back proven by the decline in leverage and debt to total capitalization proportions, which is a confident sign pertaining to the company, and shows that it is growing at a considerable rate. RETURN ON INVESTMENT
The revenue of Blessed Cement from years 2008-2011 is previously mentioned 10% on average, which is quite a significant number, and shows the profitability of the firm’s investments. It really is 12. 63% in 12 months 2011, and displays a good scenario pertaining to Lucky Bare cement. CREDIT PROFILE The credit profile with the company displays a positive signal as the firm’s financial debt to total capitalization ratio dropped from forty-five. 51% in year 08, to thirty-two. 60% in year 2011. Moreover, the leverage percentage of Blessed Cement has additionally seen a decline, which in turn shows that the business is paying back its financial obligations and is maintaining a decent credit profile amongst its loan providers and suppliers.
ATTOCK BARE CEMENT Attock Bare cement Pakistan Limited (ACPL) is actually a public limited company, detailed on KSE since 2002. Main business of the firm is manufacturing and product sales of bare cement. ACPL, is usually part of the Pharaon Group, which addition to expense to bare cement industry features diversified stakes in Pakistan mainly in the oil and gas sector, power and real estate sector. The Attock Cement task was created and the organization was designed in 81, the plant finally commenced commercial production about June one particular, 1988. The project can be described as Pak Saudi joint venture and involved primary capital pay out of around Rs 1 ) billion with foreign exchange component of around US $ 45 million. This kind of made it one of many largest corporations in the exclusive sector. Pharaon Commercial Investment Company Limited holds 84. 06% of total paid up talk about capital while the general public contains a total of 15. 94% shares. BUSINESS PROFILE SECTOR: Cement Industry PRODUCTS AND SERVICES: The primary product from the Company is ORDINARY PORTLAND CEMENT (OPC) but in addition for this ACPL as well produces SULPHATE RESISTANT CONCRETE (SRC) and PORTLAND BLAST FURNACE BARE CEMENT (PBFC), which usually sells underneath the registered name brand of “FALCON CEMENT in the market.
DISTRIBUTION STATIONS: At ACPL Sales and Marketing staff focuses on delighting customers through making available quality goods at the market place. ACPL includes a network of dealers all-around Pakistan. ACPL keep on recognizing the initiatives of its dealers through periodic incentive plans based on their revenue performance. Potential forces business lead in choosing initiatives ahead of the competitors.
The profitability of Attock Bare cement is quite adequate too although not as good as Lucky Cement. You can actually gross earnings margin was very low when compared with that of Blessed Cement, nevertheless , the business net revenue margin is at par. It might be seen that Attock Bare cement has more working expenses as compared to Lucky Concrete, which it needs to cut and achieve performance, to match while using profitability overall performance of Lucky Cement. PROGRESS PROFILE Attock Cement provides a very fluctuating, or rather, an extremely inconsistent progress rate, just like be seen by return about equity and return on assets percentages.
Both the proportions were fairly decent in the year 2008, but both saw a decline in consecutive years 2009 and 2010, after which they came back to an acceptable level in year 2011. RETURN ON INVESTMENT The return on investment of Attock Bare cement was once again very capricious, fluctuating considerably between years 2008-2011. It touched a very high 32. 07% in 12 months 2009, but then declined into a level that has been similar to that in yr 2008. General, the come back on invested capital was at a satisfactory level as compared to Lucky Cement, which in turn shows the positive nature from the company’s assets. CREDIT ACCOUNT
The credit profile of Attock Concrete is a pretty acceptable one particular, as can be observed by the lowering leverage and debt to total capitalization proportions. This means that Attock Cement, like Lucky Bare cement, is also paying back its collectors and suppliers, which will imply that the lenders will probably be happy to provide money and raw materials for the company, since they’re able to fulfill their bills effectively. D. G. KHAN CEMENT M. G. Khan Cement Organization Limited (DGKCC), a unit of Nishat group, is the largest cement-manufacturing product in Pakistan with a development capacity of 5, 500 tons clinker per day.
Excellent countrywide division network as well as its products are preferred on projects of national reputation both regionally and internationally due to the unparallel and regular quality. It really is list on all the Inventory Exchanges of Pakistan. BUSINESS PROFILE SECTOR: Cement Sector PRODUCTS AND SERVICES: You will find two types of cement goods of M. G. Khan: * Normal Portland Bare cement * Sulphate Resistant Cement DISTRIBUTION PROGRAMS: Two different products happen to be produced for DGKCC specifically Ordinary Portland Cement and Sulphate Tolerant Cement.
The products are sold through two different brands: * DG brand, Elefant brand Normal Portland Bare cement * DG brand Sulphate Resistant Concrete DG KhanCement Companysupplies bare cement throughout Pakistan especially in the provinces of Punjab, Sind and Baluchistan. This extensive circulation is attained through following regional revenue offices: * Lahore Regional Sales Workplace * Multan Regional Product sales Office 5. Rawalpindi Local Sales Business office * DG Khan Regional Sales Office * Karachi Regional Revenue Office
These types of regional sales offices operate in given areas and also have netweork of dealers in each location to achieve maximum sales within their territories. Moreover, direct sales are make to institutional Consumers for projects. FINANCIAL PROFILE | | 30-Jun| 30-Jun| 30-Jun| 30-Jun| | | 2008| 2009| 2010| 2011| | | Restated| PKR| Reclassified| PKR| Gross Income Margin| 12-15. 51%| thirty-one. 61%| seventeen. 93%| twenty four. 00%| EBITDA Margin| 21 years old. 25%| 28. 05%| 19. 24%| 17. 91%| EBIT Margin| twelve. 25%| 20. 33%| twelve. 74%| 12. 32%| Net gain Margin| zero. 24%| 2 . 46%| 1 ) 61%| zero. 95%| Go back on Invested Capital| installment payments on your 9%| almost 8. 55%| a few. 77%| three or more. 93%| Return On Equity| 0. 01%| 2 . 12%| 1 . 01%| 0. 60%| Return Upon Assets| 0. 06%| 1 . 03%| 0. 56%| zero. 36%| Influence Ratio| eight. 73%| 4. 17%| six. 61%| a few. 91%| Debt to total capitalization| 43. 12%| 51. 54%| 44. 45%| 40. 16%| PROFITABILITY Earnings of DG Khan Concrete is very low and ineffective as compared to the other two companies inside the cement market, Lucky and Attock Concrete Ltd. DG Khan Concrete is spending a large amount since interest expense, which can be noticed by the lower net income perimeter ratio of the firm, including 0. 4-2. 46%. However , the EBIT and EBITDA margins of DG Khan Cement had been quite sufficient, and at equiparable with the other two companies in the industry. DEVELOPMENT PROFILE DG Khan Cement has a not of very good growth rate, evident by very low returning on value and returning on property ratios. The growth of the business is poorly hampered by the interest charge and the personal debt the organization has considered. Furthermore, the debt to total capitalization ratio of the company is usually very high (higher than the additional two corporations in the industry), which was much more than 50% in year 2009.
These are unfavorable implications pertaining to the company, and the investors has to be unhappy with the performance in the firm. REVENUE: The returning on invested capital for DG Khan Cement was also quite inadequate when comparing with that of Lucky and Attock Bare cement. It was installment payments on your 39% in year 2008, increased to 8. 55% in year 2009, after which it settled on a level between 3-4% in years 2010-2011. This kind of adversity was again as a result of high debts ratio and hefty interest payments made by the organization, because of that this return in investments had been very low as compared to its opponents.
CREDIT PROFILE: As opposed to its competitors, DG Khan Cement has a genuinely horrific credit rating profile, as it is maintaining the debt to perform capitalization and leverage ratios at a very high level and took up more loan back in 2009, because of which their profitability is also getting affected adversely, and in addition its collectors and suppliers will be unwilling to lend DG Khan Cement more in the future, questioning the business’s ability to shell out them backside, as it previously has exceptional amounts being received through the company. FECTO CEMENT
Established at Sangjani, near Islamabad, the ISO 9001: 2k certified Fecto Cement Limited is Pakistan’s first anti-pollution cement manufacturing plant and also the initially its kind in South Asia. As one of the many integrated production units in the area, it has a ranked capacity to develop 600, 000 tonnes of clinker per year BUSINESS ACCOUNT SECTOR: Cement Industry SYNDICATION CHANNELS: That supplies concrete throughout Pakistan through a enormous properly preserved distribution channel consisting of bulk suppliers, retailers and lastly to the clients. FINANCIAL ACCOUNT | | | 2008| 2009| 2010| 2011| Major Profit Margin| | 8. 3%| 23. 21%| 5. 26%| 18. 33%| EBITDA Margin| | -2. 64%| 13. 88%| -7. 77%| 5. 42%| EBIT Margin| | -51. 03%| 14. 96%| -10. 04%| 2 . 78%| Net gain Margin| | -3. 53%| 9. 49%| -7. 17%| 1 . 98%| Return upon Invested Capital| | -4. 67%| 13. 74%| -8. 02%| 2 . 47%| Returning On Equity| | -13. 80%| thirty-three. 80%| -30. 20%| almost 8. 93%| Return On Assets| | -51. 50%| 15. 21%| -9. 33%| installment payments on your 95%| Leveraging Ratio| | -22. 30%| 3. 11%| -9. 56%| 11. 59%| Debt to perform capitalization| | 61. 52%| 55%| 69. 10%| 67%| PROFITABILITY The organization has increased their gross revenue margin by last year as sales possess improved more than rise in expense of sales.
The net profit margin has better as out-do the last year since the company was incurring damage in 2010. Yet , it underneath performed compared to the industry. DEVELOPMENT PROFILE The expansion rate features considerably increased from last year but the total industry growth is much more than Fecto. The business needs to increase its development by holding onto more than half of its profits and re-investing it to improve its income in the coming years normally it will land way in back of the sector and could take a very long time to recover. RETURN ON INVESTMENT The revenue has increased from the preceding year.
This implies that firm is capitalizing its resources in a more efficient manner with an increase in the accumulated earnings. However , not necessarily at all adequate in comparison to their competitors. CREDIT PROFILE: The debt to capitalization and leveraging ratio is very high which means Fecto recieve more debt since compare to their equity. It includes declined from your preceding season but it is rather high in terms of its competitors. This displays a fragile financial position when compared with the market and positions more default risk for the organization. MAPLE CONCRETE At the time of privatization in 1992, the capacity of Maple Leaf to produce
Normal Portland Bare cement (OPC) was 1000 hues per day (tpd). A second plant of four thousand tpd was commissioned more than a decade ago and another plant of 6700 tpd came into development in 2006. That increased the whole capacity to 11, 700 tpd. The capacity of White Cement has also improved from 75 tpd to 500tpd with the help of a new grow. This herb also has procedures for duplicity the capacity to 1000tpd. At this time Maple Tea leaf cement has 9% with the market share of OPC and is also a leading company in Pakistan with a varied customer base. It is additionally the largest developer of White colored Cement near your vicinity with 80 percent of market share.
BUSINESS PROFILE SECTOR: Bare cement Industry PRODUCT OR SERVICE The two key products happen to be: * Common Portland Concrete (OPC) using a capacity of 11700 tones per day. * White Bare cement, its present capacity is 500 colors per day which shall be bending to 1000 tones daily in near future. FINANCIAL ACCOUNT | | | 2008| 2009| 2010| 2011| Low Profit Margin| | sixteen. 94%| 32. 49%| twenty one. 56%| 18. 64%| EBITDA Margin| | 16. 88%| 23. 19%| 3. 45%| 14. 14%| EBIT Margin| | your five. 73%| sixteen. 27%| -3. 74%| four. 47%| Net gain Margin| | -8. 65%| -6. 45%| -18. 96%| -13. 53%| Return upon Invested Capital| | 1 ) 72%| being unfaithful. 1%| 1 . 69%| 1 . 75%| Returning On Equity| | -8. 08%| -14. 63%| -50. 32%| -15. 37%| Returning On Assets| | -2. 58%| -3. 83%| -9. 90%| -5. 25%| Power Ratio| | 13. 47%| 5. 35%| 38. 80%| 13. 52%| Debt to perform capitalization| | 68. 02%| 73. 80%| 80. 32%| 74. 23%| PROFITABILITY The net profit perimeter increased by simply 5. 43% and completed at 13. 53% as compare to the prior year which has been in unfavorable. This is a good signal as the corporation is shifting towards success as out-do the last couple of years. However , the business needs to increase its advantage management to be able to compete with the industry
EXPANSION PROFILE The growth rate can be improving since compare to the previous year which can be surely a natural sign to get the company. Coming from last year the income have pretty increased yet Maple Leaf is still beneath performing when compared with the sector earning. A whole lot of efforts need to be devote for the organization to be rivalling with the market. RETURN ON INVESTMENT The return on investment is practically the same as out-do the last year. This means that the company needs to increase the sales to acquire a favorable result in the coming years. CREDIT RATING PROFILE
The leverage ratio as well as the debt to value ratio is pretty high while compare to the industry which will refers to declining operational effectiveness and unproductive asset managing. Maple must decrease the reliance upon debt to get a better ratio in the arriving years. FAUJI CEMENT A longtime innovator in the concrete manufacturing industry, Fauji Bare cement Company, based in Rawalpindi, operates a cement flower at Jhang Bahtar, Tehsil Fateh Jang, District Attock in the region of Punjab. The Company has a strong and longstanding custom of assistance, reliability, and quality that reaches back more than 13 years.
Financed by Fauji Foundation the business was integrated in Rawalpindi in 1992. BUSINESS PROFILE SECTOR: Concrete Industry SERVICES AND PRODUCTS: Ordinary Portland cement may be the major product. CUSTOMERS: The organization has been set up with the major objective of producing and providing ordinary portland cement. The best quality of cement is available for all types of customers if for dams, canals, professional structures, freeways, commercial or residential needs using latest state of the art dried out process concrete manufacturing method.
FINANCIAL ACCOUNT | | | 2008| 2009| 2010| 2011| Gross Profit Margin| | 18. 56%| 23. 75%| 13. 54%| 17. 35%| EBITDA Margin| | 18. 56%| 17. 12%| 32. 61%| 21. 35%| EBIT Margin| | sixteen. 96%| 31. 98%| being unfaithful. 61%| doze. 48%| Net gain Margin| | 11. 66%| 18. 96%| 6. 57%| 8. 98%| Return about Invested Capital| | 3. 69%| 9. 90%| 1 . 95%| 1 ) 71%| Return On Equity| | 4. 45%| twelve. 39%| installment payments on your 60%| three or more. 86%| Return On Assets| | three or more. 32%| some. 70%| zero. 93%| 1 ) 32%| Leverage Ratio| | 4. 18%| 8. 29%| 25. 70%| 20. 40%| Debt to total capitalization| | 25. 0%| 67. 06%| 62. 60%| 55. 90%| PROFITABILITY: The profit margin has increased as beat the previous season but if all of us match that with earlier performance of the company it can be still for a suffering rate. This decrease is usually due to the total decline in the cement industry GROWTH PROFILE: The growth level has improved but it is usually not much acceptable when compared with the industry. In order to compete with the dominant corporations, Fauji should utilize its assets towards a more efficient manner RETURN ON INVESTMENT:
In comparison with 2011 to 2010 it has been in the same location, Fauji needs to increase its growth by retaining more than half of the earnings and re-investing that to increase it is income in the coming years otherwise it is going to fall method behind the industry and would have a long time to recover. CREDIT PROFILE: The credit profile in the company is rather below the market. However , the leverage proportion of Thatta Cement provides seen an amazing increase, which shows that the organization is repaying its financial obligations and is preserving a decent credit rating profile among its loan providers and suppliers.
THATTA BARE CEMENT Thatta Cement Company Limited was designed in 80 as a public limited organization. It was a completely owned additional of the Express Cement Firm of Pakistan (Pvt. ) Limited. The manufacturing facility was commissioned in 1982. The plant based on dry procedure technology, a new total installed capacity of just one, 000 lots per day of clinker. The rose was supplied by M/s. Mitsubishi Corporation, Japan. In the year 2004 the consortium of Mr. Arif Habib and Al-Abbas Group acquired completely shares with the Company from your Privatization Commission payment and took over its administration control.
ORGANIZATION PROFILE SECTOR: Cement Market PRODUCTS AND SERVICES: 5. Ordinary Portland Cement 2. Sulphate Resistant Cement 5. Portland Fun time Furnace Slag Cement 5. Ground Granulated Blast Furnace Slag CONSUMERS AND END MARKETS: A number of the valued consumers: * Lucky Paragon (Ready-Mix) * DGDP, FWO (Frontier Works Organization), Siam Group, CGGC, AJK, SAMBU Pakistan, Bahria Icon, Envicrete, Hubcrete and Atlas Ready Mixture. FINANCIAL PROFILE | | | 2008| 2009| 2010| 2011| Low Profit Margin| | 18. 69%| twenty seven. 69%| 17. 96%| 12. 88%| EBITDA Margin| | 8. 95%| 21. 50%| 5. 96%| 0. 79%|
EBIT Margin| | a few. 65%| 18. 96%| 2 . 63%| -2. 04%| Net gain Margin| | 2 . 79%| 11. 36%| 0. 06%| -4. 02%| Return on Invested Capital| | 39. 15%| 84. 50%| thirty six. 40%| thirty six. 28%| Come back On Equity| | six. 92%| twenty six. 45%| zero. 12%| -10. 64%| Come back On Assets| | installment payments on your 94%| zero. 07%| 13. 37%| 3. 75%| Leverage Ratio| | 6. 11%| 16. 77%| 7. 25%| 68. 25%| Debt to total capitalization| | 0. 57%| 4. 56%| 0. 46%| 0. 51%| PROFITABILITY The profitability has rejected as beat the previous year due to the functionality of the plant was desperately affected by regular interruptions in power supply simply by HESCO.
The substantial reduction is also due to the increase in the availability cost including the purchase price of raw materials and huge increase in gasoline and power cost. PROGRESS PROFILE The growth rate is declining because compare to the last year mainly as a result of increase in COGS and also the firm has also used the long lasting. There is also a rise in the circulation cost which can be due to the increase of admiration in export products related freight and other charges which elevated by 10. 61% regardless of decrease in product sales volume of export by 18. 3%. REVENUE: The return on used capital is same as the prior year which is fairly high as out-do the others. This means that come back from opportunities is considerably more than the sector average. CREDIT RATING PROFILE: The credit account of the business is very little satisfactory. Furthermore, the leverage ratio of Thatta Concrete has also viewed a fall, which shows that the company can be paying back it is debts which is maintaining a significant credit profile among their lenders and suppliers
