KARACHI, Oct 5: Dewan Salman Fibre Limited posted after tax profit in the sum of Rs327 million for the year ended June 30, 2004, which was over 11 times the net earnings of Rs28 million the previous year.

As the company unveiled financial figures on Tuesday, the market was not surprised by the steep rise in after-tax-profit, for the results were quite in line with analysts' expectations.

The earnings rise was already factored into the price of the DSFL stock. No one was looking forward to a cash dividend from the company since it needed funds for repayment of foreign and local debts and return on its outstanding Term Finance Certificates (TFCs).

But the board proposed bonus shares at 7.5 per cent, which would capitalize Rs256 million. The company holds outstanding shares at 341 million, which produced earning per share (eps) at Rs0.95. On Tuesday, the DSFL stock shed 30 paisa to close at Rs18.95. That places it on price-to-earnings (p/e) multiple of 19.9 times.

Analysts were generally visualizing earnings for the year under review to climb steeply on the back of improved PSF prices, emanating from rising cost of raw materials and the sharp plunge in financial charges as a result of restructuring of company's long term debts. Financial charges for the year stood at Rs721 million, which represented 27.5 per cent decline from Rs994 million for FY03.

Net sales for the year under review improved 15 per cent to Rs18.1 billion, from Rs15.7 billion the year ago. Cost of sales increased 14.7 per cent to Rs16.4 billion, from Rs14.3 billion and the gross profit rose 16 per cent to Rs1.7 billion, from Rs1.4 billion.

Operating profit edged higher by 3.5 per cent to Rs1.12 billion, from Rs1.08 billion. Net profit before tax was up by 4.6 times to Rs399 million, from a year ago pre-tax profit at Rs87 million.