Bestway Cement posts 25% jump in profits during 9MFY22

April 25, 2022 (MLN): Bestway Cement Limited (BWCL), Pakistan’s second-largest cement manufacturer, has announced its financial results for 9MFY22 ended March 31, 2022, whereby it has witnessed a 25% YoY increase in its net profits worth Rs10.36 billion (EPS: Rs17.38) against a net profit of Rs8.27 billion (EPS: Rs13.87) recorded in the same period of last fiscal year (SPLY).

Along with the result, the company announced an interim cash dividend of Rs4 per share i.e., 40% for the quarter ended March 31, 2022.

This increase in profitability is due to improved gross margins due to better selling prices.

According to the financial results, the company recorded a net turnover of Rs51.32bn during 9MFY22, 22.4% higher when compared to Rs41.92bn in the corresponding period last year. Thus, the gross profit margin of the company expanded by 3ppt to 31% during 9MFY22.

On the cost side, the major expense side i.e., administrative expenses soared by 2.6x YoY to Rs1.14bn while selling and distribution costs saw a 54% increase to Rs749mn during the said period.

Meanwhile, the financial cost of the company observed a 7% YoY decline to Rs752bn during the review period. This reduction was driven by lower average borrowing costs as compared with last year.

Notably, the other positive highlight is a 41% jump in the income received from the share of profits of associates that stood at Rs1.91bn, strengthening the financial health of the company.

On the tax front, the effective tax rate stood at 28% in 9MFY22 as opposed to 25% in SPLY.

Financial Results for the nine months ended March 31st, 2022 ('000 Rupees)

 

Mar-22

Mar-21

% Change

Gross turnover

 73,891,183

 63,220,973

16.88%

Less: Rebates and discounts

 (2,236,468)

 (2,242,684)

-0.28%

Less: Sales tax and excise duty

 (20,334,078)

 (19,060,160)

6.68%

Net turnover

 51,320,637

 41,918,129

22.43%

Cost of Sales

 (35,176,858)

 (30,002,074)

17.25%

Gross profit

 16,143,779

 11,916,055

35.48%

Other (loss)/ income

 (56,028)

 109,310

Selling and distribution expenses

 (748,975)

 (485,704)

54.20%

Administrative expenses

 (1,137,159)

 (434,309)

161.83%

Other expenses

 (936,032)

 (679,309)

37.79%

Operating profit

 13,265,585

 10,426,043

27.24%

Finance costs

 (751,940)

 (811,430)

-7.33%

Share of profit of equity-accounted investees, net of tax

 1,908,740

 1,351,284

41.25%

Profit before tax

 14,422,385

 10,965,897

31.52%

Income tax expense

 (4,061,196)

 (2,693,575)

50.77%

Profit for the period

 10,361,189

 8,272,322

25.25%

Earnings per share – basic and diluted (Rupees)

 17.38

 13.87

25.31%

 

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Posted on: 2022-04-25T11:09:10+05:00

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