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% |
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