Analysis of the Cement Industry in Pakistan

50
Presentation by Presentation by Hira Khurshid Hira Khurshid Ghulam Mustafa Ghulam Mustafa Madiha Hafeez Madiha Hafeez Anam Javaid Anam Javaid

Transcript of Analysis of the Cement Industry in Pakistan

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 1/50

Presentation byPresentation by

Hira KhurshidHira Khurshid

Ghulam MustafaGhulam Mustafa

Madiha HafeezMadiha Hafeez

Anam JavaidAnam Javaid

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 2/50

Introduction

Pakistan ranked 5th in the world

cement exports

Cement constituted 47 % of the

exports during the fiscal year 2010

exported 11 million tones of cement

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 3/50

…continued

High demand in neighboring countries

Including India

High local demand Reconstruction of buildings, homes, shops

and schools in devastated area of Swat andMalakand after Military operation.

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 4/50

…continued

Growth of Cement Industry Record Public Sector Development Programme

allocation (Rs 621 billion) in the budget FY10

reduction in excise duty by Rs 10 per bag

Fauji Cement claimed 100%capacity utilization during FY10

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 5/50

Financial Analysis

3 leading cement producers

Bestway Cement

Fauji Cement

Lucky Cement

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 6/50

Bestway Cement

2005-06 0. 762006-07 0. 82

2007-08 0. 70

2008-09 0. 65

2009-10 0. 52

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 7/50

Bestway Cement

2005-06 14. 982006-07 15. 94

2007-08 8. 88

2008-09 9. 51

2009-10 14. 72

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 8/50

Bestway Cement

2005-06 26. 67

2006-07 27. 97

2007-08 58. 10

2008-09 52. 08

2009-10 32. 48

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 9/50

Bestway Cement

2005-06 41.02006-07 43.91

2007-08 64.31

2008-09 61.09

2009-10 46.31

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 10/50

Bestway Cement

2005-06 0. 25

2006-07 0. 25

2007-08 0. 29

2008-09 0. 52

2009-10 0. 47

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 11/50

Bestway Cement

2005-06 2. 72

2006-07 3. 08

2007-08 2. 71

2008-09 2. 44

2009-10 3. 01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 12/50

Bestway Cement

2005-06 45.02006-07 39.0

2007-08 38.0

2008-09 41.0

2009-10 52.0

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 13/50

Bestway Cement

2005-06 50. 48

2006-07 17. 93

2007-08 13. 47

2008-09 32. 20

2009-10 13. 27

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 14/50

Bestway Cement

2005-06 6. 802006-07 0. 23

2007-08 0. 66

2008-09 3. 45

2009-10 4. 30

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 15/50

Bestway Cement

2005-06 0. 58

2006-07 3. 51

2007-08 4. 37

2008-09 3. 17

2009-10 3. 71

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 16/50

Bestway Cement

2005-06 7. 502006-07 10. 00

2007-08 10. 00

2008-09 10. 00

2009-10 0. 00

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 17/50

Fauji Cement

2005-06 1.252006-07 1.35

2007-08 2.16

2008-09 0.81

2009-10 0.63

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 18/50

Fauji Cement

2005-06 8.732006-07 9.21

2007-08 9.55

2008-09 7.67

2009-10 10.2

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 19/50

Fauji Cement

2005-06 60.552006-07 61.22

2007-08 59.23

2008-09 20.16

2009-10 40.11

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 20/50

Fauji Cement

2005-06 68.932006-07 71.08

2007-08 68.93

2008-09 27.96

2009-10 50.22

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 21/50

Fauji Cement

2005-06 0.69

2006-07 0.54

2007-08 0.96

2008-09 0.56

2009-10 0.65

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 22/50

Fauji Cement

2005-06 0.60

2006-07 0.38

2007-08 0.30

2008-09 0.29

2009-10 0.50

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 23/50

Fauji Cement

2005-06254.0

2006-07 58.0

2007-08 141.0

2008-09 39.0

2009-10 42.0

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 24/50

Fauji Cement

2005-06 51.12

2006-07 31.52

2007-08 18.56

2008-09 31.75

2009-10 13.54

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 25/50

Fauji Cement

2005-0619.42

2006-07 10.10

2007-08 3.32

2008-09 4.70

2009-10 0.93

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 26/50

Fauji Cement

2005-063.21

2006-07 1.73

2007-08 0.85

2008-09 1.43

2009-10 0.31

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 27/50

Fauji Cement

2005-06 1.62006-07 1.2

2007-08 1.1

2008-09 2.1

2009-10 1.9

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 28/50

Lucky Cement

2005-06 0.932006-07 0.85

2007-08 0.81

2008-09 0.72

2009-10 0.66

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 29/50

Lucky Cement

2005-06 18.662006-07 18.51

2007-08 17.65

2008-09 18.33

2009-10 14.39

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 30/50

Lucky Cement

2005-06 89.10

2006-07 70.19

2007-08 62.00

2008-09 60.72

2009-10 58.32

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 31/50

Lucky Cement

2005-06 107.932006-07 88.19

2007-08 79.83

2008-09 78.53

2009-10 73.25

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 32/50

Lucky Cement

2005-06 0.42

2006-07 0.61

2007-08 0.56

2008-09 0.36

2009-10 0.65

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 33/50

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 34/50

Lucky Cement

2005-06 69.02006-07 54.0

2007-08 39.0

2008-09 50.0

2009-10 43.0

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 35/50

Lucky Cement

2005-06 24.22

2006-07 20.3

2007-08 19.31

2008-09 20.32

2009-10 24.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 36/50

Lucky Cement

2005-068.19

2006-07 9.9

2007-08 19.31

2008-09 25.20

2009-10 12.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 37/50

Lucky Cement

2005-063.14

2006-07 7.35

2007-08 9.67

2008-09 9.84

2009-10 14.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 38/50

Lucky Cement

2005-06 1.502006-07 1.0

2007-08 1.5

2008-09 2.2

2009-10 3.1

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 39/50

Analysis (Comparison)

Current Ratio

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 0. 760. 76 1.251.25 0.930.93

2006-072006-07 0. 820. 82 1.351.35 0.850.85

2007-082007-08 0. 700. 70 2.162.16 0.810.81

2008-092008-09 0. 650. 65 0.810.81 0.720.72

2009-102009-10 0. 520. 52 0.630.63 0.660.66

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 40/50

Analysis (Comparison)

Inventory Turnover

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 14. 98 8.73 18.662006-072006-07 15. 94 9.21 18.512007-082007-08 8. 88 9.55 17.652008-092008-09 9. 51 7.67 18.33

2009-102009-10 14. 72 10.2 14.39

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 41/50

Analysis (Comparison)

Account Receivable Turnover

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 26. 67 60.55 89.102006-072006-07 27. 97 61.22 70.192007-082007-08 58. 10 59.23 62.002008-092008-09 52. 08 20.16 60.72

2009-102009-10 32. 48 40.11 58.32

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 42/50

Analysis (Comparison)

Operating Cycle

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 41.0 68.93 107.932006-072006-07 43.91 71.08 88.192007-082007-08 64.31 68.93 79.832008-092008-09 61.09 27.96 78.53

2009-102009-10 46.31 50.22 73.25

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 43/50

Analysis (Comparison)

Total Asset Turnover

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 0. 25 0.69 0.42

2006-072006-07 0. 25 0.54 0.61

2007-082007-08 0. 29 0.96 0.56

2008-092008-09 0. 52 0.56 0.36

2009-102009-10 0. 47 0.65 0.65

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 44/50

Analysis (Comparison)

Debt to Equity

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 2. 72 0.60 3.252006-072006-07 3. 08 0.38 2.972007-082007-08 2. 71 0.30 3.12008-092008-09 2. 44 0.29 2.93

2009-102009-10 3. 01 0.50 1.8

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 45/50

Analysis (Comparison)

Times Interest Earned

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 45.0 254.0 69.02006-072006-07 39.0 58.0 54.02007-082007-08 38.0 141.0 39.02008-092008-09 41.0 39.0 50.0

2009-102009-10 52.0 42.0 43.0

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 46/50

Analysis (Comparison)

Gross Profit Margin

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 50. 48 51.12 24.222006-072006-07 17. 93 31.52 20.32007-082007-08 13. 47 18.56 19.312008-092008-09 32. 20 31.75 20.32

2009-102009-10 13. 27 13.54 24.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 47/50

Analysis (Comparison)

Rerurn On Asset

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 6. 80 19.42 8.192006-072006-07 0. 23 10.10 9.92007-082007-08 0. 66 3.32 19.312008-092008-09 3. 45 4.70 25.20

2009-102009-10 4. 30 0.93 12.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 48/50

Analysis (Comparison)

Earnings Per Share

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 0. 58 3.21 3.142006-072006-07 3. 51 1.73 7.352007-082007-08 4. 37 0.85 9.672008-092008-09 3. 17 1.43 9.84

2009-102009-10 -3. 71 0.31 14.01

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 49/50

Analysis (Comparison)

Dividend Per Share

BestwayBestway FaujiFauji LuckyLucky2005-062005-06 7. 50 1.6 1.50

2006-072006-07 10. 00 1.2 1.02007-082007-08 10. 00 1.1 1.52008-092008-09 10. 00 2.1 2.2

2009-102009-10 0. 00 1.9 3.1

8/6/2019 Analysis of the Cement Industry in Pakistan

http://slidepdf.com/reader/full/analysis-of-the-cement-industry-in-pakistan 50/50

End Of Presentation