Bestway Cement posts profit

Bestway’s turnover on a consolidated basis jumped by 38% from Rs6.8 billion to Rs9.4 billion. This was predominantly due to acquisition of Pakcem Limited, increase in domestic demand and stable retention prices during the quarter. Gross margin of Rs3.7 billion grew by more than 50% over the same period last year. Profit before tax for the quarter amounted to Rs3.2 billion, showing an increase of 28% as compared to Rs2.5 billion during the quarter ended 30 September, 2014. The company’s consolidated profit after tax also registered a growth of 34% to reach Rs2.3b in this quarter against Rs1.7 billion from the corresponding period of FY0214-15.

On a consolidated basis, domestic sales volume increased by 48% from 814 610 t to 1.2 million t, while exports saw a decline of 4% from 197 824 t to 189 208 t in this quarter. Overall, cement dispatches increased by 38% during the reporting period to 1.4 million t from 1.0 million t. 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.

On a consolidated basis earnings per share for Bestway Cement stood at Rs3.88 against Rs2.94 from the corresponding period. The company announced an interim dividend of Rs2.5 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 this project, which is expected to cost US$15million, will support in alleviating the country’s power crisis to a certain extent, but also reduce cost of production whilst generating clean, affordable energy.

Adapted from press release by Joseph Green

Read the article online at: https://www.worldcement.com/indian-subcontinent/11112015/bestway-cement-posts-profit-960/