The Dewan Textile Mills Limited said in its report for the first half ended March 31, 2003 that its net profit after tax shot up after cost reduction.

The profit jumped after management's continued efforts to cut cost, the report said.

During the period under review, the company made a net profit after tax of Rs11.68 million as compared to the profit of Rs0.63 million for the corresponding period of the last year.

The sales revenue increased by Rs249.16 million whereas gross profit ratio reduced from 16.52 per cent to 14.50 per cent in the current period.

The company had succeeded in earning a profit before taxation of Rs17.71 million as compared to the profit of Rs8.31 million in the corresponding period.

This is mainly due to management's continued efforts to reduce cost, which is evident from the fact that the financial cost has been reduced by 7.69 per cent during the period under review.

P&L account for the period ended:

March 31, 2003 March 31, 2002

(Rupees in thousand)

Net sales 1,205,744 956,581

Profit before tax 17,713 8,310

Profit after tax 11,684 630

Earning per share(Rs) 1.26 0.06

Dewan Khalid Textile Mills

The Dewan Khalid Textile Mills Limited said in its report for the first half ended March 31, 2003 that the company made a net profit after tax of Rs1.02 million as compared to the profit of Rs0.44 million for the corresponding period of last year.

The sales revenue increased by Rs10.94 million whereas gross profit ratio reduced from 12.5 per cent to 12 per cent in the current period.

The company had succeeded in earning a profit before tax of Rs3.62 million as compared to the profit of Rs1.99 million in the corresponding period of last year. This is mainly due to management's continued efforts to reduce cost, which is evident from the fact that the administration cost has been reduced by 14.24 per cent during the period under review.

P&L account for the period ended:

March 31, 2003 March 31, 2002

(Rupees in thousand)

Gross sales 320,346 308,714

Profit before tax 3,619 1,989

Profit after tax 1,017 445

Earning per share (Rs) 0.26 0.13



Dewan Mushtaq Textile Mills Limited

The Dewan Mushtaq Textile Mills Limited said in its report for the first half ended March 31, 2003 that the company made a net profit after tax of Rs0.13 million as compared to the loss of Rs5.62 million for the corresponding period of last year.

The sales revenue decreased by Rs81.95 million whereas gross profit ratio improved from 15.95 per cent to 18.65 per cent.

Despite a significant decline in sales, the company still succeeded in earning a profit before tax of Rs2.00 million as compared to the loss of Rs3.94 million in the corresponding period last year. This is mainly due to management's continued efforts to reduce cost, which is evident from the fact that the administration cost had been reduced by 12.54 per cent and financial cost by 29.81 per cent during the period under review.

P&L account for the period ended:

March 31, 2003 March 31, 2002

(Rupees in thousand)

Gross sales 194,907 283,238

Profit before tax 2,003 (3,021)

Profit after taxation 133 (5,622)

Earning per share (Rs) 0.06 (2.64)

Dewan Sugar Mills Limited

The Dewan Sugar Mills Limited said in its report for the first half ended March 31, 2003 that its losses had widened because of high production costs.

The sugar industry is continuously facing the problem of surplus stock in the country which, in order to stabilise the industry, needs to be immediately exported.

There can be no doubt that the disposal of this stock would prove to be an uphill task for the sugar industry and because of which the industry naturally apprehends serious financial difficulties in the next 12 months.

In the current situation, the sugar industry appears to be heavily depended on support from the government, especially in so far as the disposal of surplus sugar stock is concerned.

There is a need to explore the possibilities to export the surplus stocks. Since the cost of production in the industry remains high compared with other major sugar producing countries, Pakistan's sugar remains price-wise uncompetitive in the world market and therefore there is a need for subsidising exports in order to get out of the current crisis.

During the period under review, the gross sales stood at Rs79.395 million. The gross profit was Rs32.9 million and the net loss after tax for the period was Rs18.844 million.

In the crushing season of 2002-03, industry production of refined sugar was over 3.6 million tonnes. With the previous season's carried-over stock of 637,000 tonnes, total supply of locally produced sugar comes to 4.2 million tonnes for the current season against an annual consumption demand of around 3.324 million tonnes. The surplus sugar in the shape of unsold stocks with the sugar industry thus comes to 938,000 tonnes.

The current sugarcane crushing season started on December 20, 2002 and ended on April 12, 2003. During this period, the plant crushed 824,622.503 metric tons or 22,093,626 maunds of sugarcane at an average recovery of 9.74 per cent. During this period, 80,315 tonnes of refined sugar and 42,604 tonnes of molasses were produced.

P&L account for the period ended:

March 31, 2003 March 31, 2002

(Rupees in thousand)

Sales 831,237 401,832

Loss before tax (10,232) (2,736)

Loss after tax (18,844) (11,608)

Loss per share (Rs1.03) (Re0.64)