Gross Sales Revenue

Gross sales revenue has increased from Rs. 877 bn in FY10 to Rs. 1.4 trillion in FY14 registering
an increase of 61%.The increase in revenue over the periods is attributable to both volumetric
and price increase.

Gross Profit
Gross profit has also increased over the years as per horizontal analysis in line with increase in
sales. The vertical analysis shows gross pot percentage remaining in the range of 3% with the
exception of 2009.

Other Income
Other income has witnessed a sign cant increase of 158% over the years. It was highest in 2014
due to receipt of interest income from IPPs and PIBs. As per vertical analysis, the share of other
income has also increased due to the same reason.

Total Operating Cost
Total operating cost has grown steadily over the years registering an increase of 53% mainly due
to an increase in cost of doing business, inflationary pressure and rupee devaluation. An
abnormal increase was witnessed in 2012 due to heavy exchange losses of Rs. 8.6 bn because of
sharp rupee devaluation of 10%.

Finance Cost
Finance cost has shown an increasing trend over the years when compared with 2010. This is
mainly due to increase in markup on borrowings and delayed payment charges on account of
prevailing circular debt situation. The finance cost was the lowest in 2013 due to partial
settlement of circular debt issue during September 2012 and June 2013 respectively. However, in
2014 it has again increased due to the same reason mentioned above.

Profit after Tax
Profit after Tax (PAT) has shown an increase of 141% in comparisons with FY10 mainly due to
increase in gross profit and other income. As per vertical analysis, the PAT percentage has also
remained in the range of 1% over the years except for the year 2009 and 2014 due to reasons
mentioned above.

Comments on Analysis
As of June 30, 2014, significant variation as compared to FY13 is because of the following:
- Shareholders equity rose by Rs. 18 bn due to net retained income generated during the year.
- Total noncurrent assets increased by Rs. 1 bn mainly due to increase in deferred tax asset by
Rs. 3.2 bn, which is offset with decrease in value of long term investments by Rs. 2.4 bn.
- Current assets increased by Rs. 89 bn primarily due to increase in trade debt balances by Rs. 99
bn which is partially offset with decrease in stock in trade by Rs. 20 bn.
- Total Liabilities increased by Rs. 72 bn primarily due to increase in short term borrowings by
Rs. 75 bn on account of adverse circular debt situation.



Financial Ratios
Balance Sheet ratios
2014 2013
Current Ratio 1.081011 1.03373
Quick Ratio 0.081011 0.156885
Debt-to-Worth 0.00026 0.216715


Income Statement Ratios
2014 2013
Gross Margin 0,026124 0.031052
Net Margin 0.023389 0.017461


ASSET MANAGEMENT RATIOS
2014 2013
Sales-to-Assets 3.78764 4.903465
Return on Assets 0.088591 0.085621
Return on Investment 0.023061 0.014765

ASSET MANAGEMENT RATIOS Working Capital Cycle Ratios
2013 2014
Inventory Turnover 13.33548 10.0478
Inventory Turn-Days 26.99565 35.82874
Accounts Receivable Turnover 60.34321 38.16922
Accounts Receivable Turn-Days 5.965874 9.431683
Accounts Payable Turnover 5.931778 5.366162
Average Payment Period 60.69007 67.08705