Business Analysis: Pakistan Cable

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Pakistan Cables, the country’s oldest and most reputable cable manufacturer was established over 5 decades ago in 1953 as a joint venture with BICC. In the subsequent six decades, Pakistan Cables has earned a reputation as a market leader and premier cable manufacturer in the country and a company that does not compromise on quality. Pakistan Cables has been listed on the Karachi Stock Exchange since 1955. In November 2010 General Cable Corporation, a Fortune 500 company and global leader in cable manufacturing invested in Pakistan Cables by taking up a 25% equity stake in the company.
Pakistan Cables is part of the Chinoy Group of Companies, which includes International Industries (IIL) and International Steels Limited (ISL), as well as other interests in diverse businesses.
Pakistan Cables is an affiliate of General Cable, which is amongst the world’s largest cable companies with revenue in 2011 of USD 5.8 billion. General Cable has a global presence with 57 plants in 26 countries including the US, Canada, France, Germany, Spain, Brazil, China, Thailand, South Africa, and the Philippines.

Name of Company Pakistan Cables Limited
Ticker PCAL
Assets (year ended 2013) Rs. 3,592,066
Share Capital Rs. 284,623
Sales Revenue (2013) Rs. 6,164,555
Market Share Price (2012-2013) Rs. 64.8

Comparison
PCAL has no major public limited company as its competitors so its financial statements cannot be compared to that of any other competitor’s financial statements since they are not available. This company is counted as part of Electronic and Electrical Goods Industry in Pakistan. So comparing it with the industry will be not fair but a little comparison yields the following results.

If we take into account the industry average, it s...

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...king an aggressive and proactive marketing strategy. And even with the uncertainty in demand, it has expanded its sales both in terms of value and volume throughout 2011-2013. Moreover, this approach has allowed Pakistan Cables Ltd to win a healthy amount of orders going into the first quarter of 2012-2013.
2013 being the election year, the PSDP (public sector development program) has released 43 percent of its budget in the 1 half of 2013. The company continues to remain enthusiastic in marketing its products. Moreover, the approach of the company is to focus on the development of its core business and to achieve benefits from investment made in wire and cable machinery and other activities.

At present there is excess capacity in the cable industry of Pakistan. Hence, the aspect of additional business remains uncertain, and the margins can come under pressure.

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