DANDOT CEMENT COMPANY LIMITED

DIRECTORS’ REPORT TO THE MEMBERS

 

Your Directors are pleased to present the accounts ( un-audited ) of the Company for the second quarter ended December 31, 2005.

 

The comparative data for production of clinker & cement and dispatches of cement for the second quarter is summarized hereunder: -

 

 

 

 

Second quarter ended

 

Half year ended

 

 

 

Dec. 2005

 

Dec. 2004

 

Dec. 2005

 

Dec. 2004

 

 

 

( Tonnes )

 

( Tonnes )

 

 

 

 

 

 

 

 

 

 

Clinker Production

 

      76,054

 

    103,796

 

    158,660

 

    205,053

Cement :

 

 

 

 

 

 

 

 

 

Production

 

      85,054

 

    107,071

 

    172,721

 

    212,041

 

Dispatches

 

      84,734

 

    105,453

 

    172,426

 

    209,203

 

During the period under review, the decrease in operating performance of the Company is due to plant maintenance carried out in the months of July and October, 2005.In general, the performance of the cement plant remained satisfactory.

 

Likewise, a summary of the Company’s financial results for the Half year ended December, 2005 along with the comparative data of the preceding comparable period is provided here under:

 

 

 

 

Second quarter ended

 

Half year ended

 

 

 

Dec. 2005

 

Dec. 2004

 

Dec. 2005

 

Dec. 2004

 

 

 

( Rs. In Million )

 

( Rs. in Million )

 

 

 

 

 

 

 

 

 

 

Gross Profit

 

         58.5

 

         56.8

 

       116.8

 

       102.8

 

 

 

 

 

 

 

 

 

 

Operating Profit

 

         42.4

 

         40.2

 

         85.9

 

         71.7

 

 

 

 

 

 

 

 

 

 

Profit before taxation

 

         26.6

 

         20.3

 

         63.0

 

         36.9

 

Taxation

 

 

57.4

 

(125.3)

 

58.8

 

(123.8)

 

Net Profit / (loss)

 

 

 

 

 

 

 

 

    after taxation

 

        (30.9)

 

       145.6

 

           4.2

 

       160.8

 

 

The Company’s gross, operating and before taxation profits improved from preceding period, inspite of the reduced operating performance as discussed above. However in the period under review the Company recorded deferred tax charge amounting to Rs. 55.6 million, as compared to reversal of deferred tax of Rs. 126.9 million in the corresponding comparable period, which resulted in the reduced profit after taxation as compared to preceding period.

 

The Company during the current quarter started its export of cement to Afghanistan. This will have a very positive impact on the profitability of the Company.

 

We are confident that the cement industry shall continue its impressive growth rate due to the prevailing aggressive business environment in the country in general and construction & large-scale manufacturing sectors in particular.

 

The Board of Directors appreciates the efforts and devotion of the employees, the executives and the entire team of management and anticipates that they will contribute towards the enhancement of the productivity and well being of the Company in future with greater zeal & spirit. The Board extends its gratitude to the financial institutions for their valued support and co-operation for the Company’s prosperity.

 

For and on behalf of the Board

 

 

 

 

 

 

ABDUR RAFIQUE KHAN                              Lahore: February 24, 2006

     Chief Executive