BWCL 9MFY26 profit inches up 2%

April 16, 2026 (MLN): Bestway Cement Limited (PSX: BWCL) reported a modest 2% increase in net profit, logging Rs17.91bn for the nine-month period ended March 31, 2026, compared to Rs17.54bn in the same period last year.

The company's earnings per share (EPS) edged up to Rs30.04 from Rs29.42 in the corresponding period, while dividend was declared at Rs10 per share.

This slight bottom-line growth masks a challenging core operational environment, as the profit increase was entirely driven by non-core associate income and massive savings in debt servicing.

Bestway's top-line remained flat, with net turnover creeping up by a mere 0.5% to Rs82.39bn from Rs82bn. However, the cost of sales outpaced revenue growth, rising 10% to Rs59.08bn from Rs53.52bn. Consequently, gross profit took a significant 18% hit, dropping to Rs23.31bn from Rs28.48bn in the prior year.

On the operating side, the company implemented strict cost controls in some areas, trimming selling and distribution expenses by 29% to Rs897.47m and cutting other operating expenses by 14% to Rs1.16bn.

Administrative expenses, however, rose 23% to Rs1.74bn. Despite the targeted cost-cutting, the heavy gross margin contraction dragged operating profit down by 20% to Rs19.52bn from Rs24.46bn.

The company's bottom line was completely rescued below the operating level.

First, finance costs plummeted 37%, dropping to Rs3.98bn from the heavy Rs6.30bn burden recorded last year, freeing up over Rs2.3bn. Second, the share of profit from equity-accounted investees surged by a massive 46%, injecting Rs10.94bn into the company’s earnings compared to Rs7.49bn in 9MFY25.

While other net income dropped 66% to Rs465.36m, the combined impact of slashed debt costs and surging associate profits managed to stabilize the pre-tax earnings. Profit before tax stood nearly flat at Rs26.94bn, a marginal 0.3% dip from last year.

Finally, a 5% reduction in income tax expense (Rs9.03bn compared to Rs9.48bn last year) tipped the scales, allowing the final net profit for the period to inch up by 2%.

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