Pakistan's largest cement producer, Bestway Cement Ltd, announced financial results for first quarter from July to September 2015.
Turnover on a consolidated basis jumped by 38 per cent from PKR6.8bn to PKR9.4bn (US$89m). This was largely attributed to the acquisition of Pakcem Ltd, an increase in domestic demand and stable retention prices during the quarter.
Gross margin of PKR3.7bn grew by more than 50 per cent over the same period last year. Profit before tax for the quarter amounted to PKR3.2bn, showing an increase of 28 per cent as compared to PKR2.5bn during the quarter ended 30 September, 2014. The company’s consolidated profit after tax also registered a growth of 34 per cent to reach PKR2.3bn in this quarter against PKR1.7bn from the corresponding period of FY0214-15.
On a consolidated basis, domestic sales volume increased by 48 per cent from 814,610t to 1.2Mt, while exports saw a decline of four from 197,824t to 189,208t in this quarter. Overall, cement dispatches increased by 38 per cent during the reporting period to 1.4Mt from 1Mt. 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 PKR3.88 against PKR2.94 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$15m, will support in alleviating the country’s power crisis to a certain extent, but also reduce cost of production whilst generating clean, affordable energy.