Meghna Cement Mills posts 71% profit fall in FY22-23

Meghna Cement Mills Ltd of Bangladesh posted its financial result for the year ending on 30 June 2023 on the Dhaka Stock Exchange’s website. The company reported that its profit plummeted to BDT15.81m (US$0.142m) from BDT558m a year ago, thus registering a 71 per cent fall in profit YoY.

Meanwhile, local media attributed the decline in revenue earnings to the currency devaluation and higher finance costs, bringing the income of Meghna Cement Mills to its lowest since its 1995 listing in the stock market. The revenue earnings plunged 57 per cent YoY to BDT3.52bn in FY22-23, as production fell.

The company officials have pointed out that raw materials were unavailable, while the cost of imports jumped due to the local currency's devaluation against the dollar. Finance costs rose due to bank loans amid a sharp fall in revenue earnings. The company bore a finance cost of BDT347.52m in FY22-23, up from BDT346.85m in the previous fiscal. The company plans to give stock dividends from retained earnings to utilise this fund in new material handling projects and install capital machinery to increase production capacity.

Repeatedly, Meghna Cement Mills Ltd is the first manufacturing unit of Bashundhara Group and it is one of the largest cement industries in the country producing nearly 1Mta.