Bestway Cement reports 5.9x increase in quarterly profits

October 28, 2020 (MLN): Bestway Cement Company Limited (BWCL) has witnessed 5.9x increase in net profits during 1QFY21 to Rs 1.79 billion, compared to Rs 300.9 million recorded in the same quarter previous year.

This reflected in company’s earnings per share which clocked in at Rs 3 as apposed to Rs 0.5 in 1QFY20, exhibiting a jump of 502% YoY.

The increase in company’s profitability linked to higher revenues which surged from Rs 15.47 billion to Rs 18.7 billion, depicting a growth of 21% YoY due to higher retention price.

As a result, the gross margins of the company jumped to 22% from 8% in the corresponding quarter last year.

On the expense side, the company observed 36% YoY decline in selling and distribution expenses, while its other expenses increased 29.5x. In addition, despite notable reduction in policy rate, company’s finance cost declined merely by 10% YoY which could likely be due to increase in borrowings.

Moreover, the company’s effective tax rate during the quarter stood at 22% compared to 16% which limited the upside in earnings.

In conjunction with the results, the company also announced interim cash dividend of Rs 3 per share i.e. 30% for the quarter mentioned above.

 

Financial Results for the Quarter ended September 30, 2020 ('000 Rupees)

 

Sep-20

Sep-19

% Change

Gross turnover

                     18,683,112

                     15,475,223

20.73%

Less: Rebates and discounts

                        (756,101)

                        (545,443)

38.62%

Less: Sales tax and excise duty

                     (5,813,390)

                     (5,624,569)

3.36%

Net turnover

                     12,113,621

                       9,305,211

30.18%

Cost of Sales

                     (9,392,102)

                     (8,553,401)

9.81%

Gross profit

                       2,721,519

                           751,810

262.00%

Other income

                             33,180

                             23,977

38.38%

Selling and distribution expenses

                        (171,683)

                        (268,949)

-36.17%

Administrative expenses

                        (130,359)

                        (129,086)

0.99%

Other expenses

                        (124,321)

                             (4,209)

2853.69%

Operating profit/(loss)

                       2,328,336

                           373,543

523.31%

Finance costs

                        (389,809)

                        (431,406)

-9.64%

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

                           357,677

                           417,524

-14.33%

Profit/(loss) before tax

                       2,296,204

                           359,661

538.44%

Income tax credit/(charge)

                        (502,502)

                           (58,663)

756.59%

Profit for the period

                       1,793,702

                           300,998

495.92%

Earnings per share – basis and diluted (Rupees)

                                  3.01

                                  0.50

502.00%

Copyright Mettis Link News 

Posted on: 2020-10-28T12:21:00+05:00

37700