Bestway Cement Limited has posted a net profit of Rs. 3.1 billion in the quarter that ended on December 31, 2017. This figure is down by 20.51% compared to Rs. 3.90 billion earned in the same quarter of previous year. This was revealed in a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.
Earnings per share (EPS) decreased to Rs. 5.36 in Oct-Dec 2017-18 compared to Rs. 6.55 in the same period of the previous financial year.
An interim cash dividend for the quarter at Rs. 3 per share was announced.
Cumulatively, the company earned a net profit of Rs. 6.19 billion with EPS of Rs. 10.39 in the first half (Jul-Dec) of 2017-18, down 12.82% compared to Rs. 7.10 billion (EPS Rs. 11.92) in the same period of 2016.
Despite higher dispatches during Q2FY18, BWCL’s top line declined during the period, owing to lower cement price during Q2 FY18.
Overall gross profit for the quarter was down to Rs. 5.03 billion, which is down by 21.77% than the corresponding period last year. This was due to lower retention price during Q2 FY18 and higher coal price during Q1 FY18, the effect of which is expected to be observed during Q2 FY18.
There is no doubt Bestway has brand recognition, and with greater spending on marketing, it has managed to snag a good market share. The selling and distribution expenses saw a decline of 5.28% whereas administrative cost increased by 4.74%.
At the time of filing this report, BWCL’s share at the bourse was trading at Rs. 147, up by +4.10% with a turnover of 28000 shares.
Bestway has contributed to its fair share of hype in the cement industry over the past year and not least because of its plans for expansion in the north.
The company was supposed to acquire the plant and assets of the sick Dewan Cement unit, after a competitive bid with other players who had similar interests. Only a few months after announcing that, Bestway bowed out of that potential deal.
Bestway Cement Limited (PSX: BWCL) is part of the Bestway Group. It has a wide product range including Ordinary Portland Cement, High Early Strength Cement (Stallion), Sulphate Resistant Cement (SRC), innovative tile bond (Xtreme Bond) and grout (Xtreme Grout).
Katas Raj Preservation
Recently the Supreme Court’s attention was drawn towards a holy pond, part of the Katas Raj temple complex, which was drying out due to water consumption by nearby cement factories that draw water using a number of drill bores and have severely reduced the subsoil water level and the usage of subsoil water by domestic users.
The Supreme Court will not issue any order to dismantle existing cement plants as output from the facilities will be required for the ongoing China-Pakistan Economic Corridor project, said Chief Justice Saqib Nisar.
Bestway Cement bagged five Corporate Social Responsibility awards. Bestway Cement had won five awards at the 10th Annual CSR Awards 2018 ceremony, held on 18 January in Islamabad.
The company won the coveted awards by the National Forum for Environment and Health (NFEH) in the categories of Green Energy Initiatives, Community Development and Service, Education and Scholarship, Vocational Trainings and Sustainability Initiatives.