KARACHI: The Bestway Cement Limited profits increased by 38 per cent to Rs9.4 billion in first quarter from Rs 6.8 billion of the same period last year.
The financial results were announced during the Bestway Cement Limited’s board of directors meeting. The positive results were largely due to acquisition of Pakcem Limited, increase in domestic demand and stable retention prices during the quarter. Gross margin of Rs 3.7 billion grew by more than 50% over the same period last year.
Profit before tax for the quarter amounted to Rs 3.2 billion, showing an increase of 28% as compared to Rs 2.5 billion during the quarter that ended September 30, 2014. The company’s consolidated profit after tax also registered a growth of 34% to reach Rs 2.3 billion in the quarter against Rs 1.7 billion from the corresponding period of FY14-15.
On a consolidated basis, domestic sales volume increased by 48% from 814,610 tonnes to 1.2 million tonnes, while exports saw a decline of 4% from 197,824 tonnes to 189,208 tonnes in the quarter. Overall, cement dispatches increased by 38% during the reporting period to 1.4 million tonnes from 1.0 million tonnes. Despite fierce competition, Bestway was able to maintain its market share in the north zone and retained its position as the largest exporter of cement to Afghanistan and India.
Earnings per share for Bestway Cement stood at Rs 3.88 against Rs 2.94 from the corresponding period. The company announced an interim dividend of Rs 2.5 per share keeping in view its excellent performance.
During the quarter, Bestway Cement further reduced its reliance on the national grid by taking energy-saving initiatives and launched a 12MW waste heat recovery power plants at its Pakcem Kallar Kahar operations. The implementation of the project, which is expected to cost $15 million, would not only support in alleviating the country’s power crisis to a certain extent, but also reduce cost of production whilst generating clean, affordable energy.
