Bestway Cement retains AA- rating

September 05, 2025 (MLN): The Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of Bestway Cement Limited (PSX: BWCL) at ‘AA-’ for the long term and ‘A1+’ for the short term, with a stable outlook.

The reaffirmation showed the company’s strong standing in Pakistan’s cement sector, its sizeable market share in the northern region, and continued operational and financial stability.

BWCL, one of the country’s largest cement producers, has a production capacity of approximately 15.3m tons p.a. following the successful completion of major expansion projects in FY23, including a Greenfield plant and a Brownfield production line, each with a clinker capacity of 7,200 tonnes/day, alongside a 9 MW Waste Heat Recovery Power Plant.

During FY25, Pakistan’s cement industry registered a modest 3% growth in total dispatches, reaching 46.0m tons compared to 44.8m tons in FY24.

The expansion was driven largely by exports, which surged 30% to 9.2m tons. While BWCL’s total dispatches dipped by 2% in line with weaker domestic demand the company managed to limit its domestic sales decline to around 2%, supported by incremental capacity from its earlier expansions.

Revenue growth was underpinned by stable sales volumes and higher selling prices, offsetting rising input costs and allowing the company to protect its margins.

On the financial side, BWCL’s leverage ratio improved significantly, dropping to 31.2% by June 2025 from 49.7% a year earlier, as management pursued aggressive deleveraging.

The recent reduction in policy rates is expected to further ease finance costs and support profitability.

Additionally, steady dividend income from BWCL’s strategic stake in United Bank Limited where shareholding increased from 8.16% to 9.6%continues to provide a reliable income stream that complements the company’s core cement operations.

PACRA highlighted that the ratings benefit from strong sponsor support of the Bestway Group (UK) and are contingent upon BWCL maintaining its market leadership, sustaining margins, and navigating ongoing demand challenges in the domestic market.

BWCL is majority owned by Bestway Group UK, which holds a 72.7% stake. The nine-member board of directors is dominated by group nominees, with Mr. M. Anwar Pervez serving as Chairman.

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