April 26, 2021 (MLN): In 9MFY21, Bestway Cement Limited (BWCL) has reported a net profit of Rs 8.27 billion (EPS: Rs 13.87), a remarkable turnaround from nine months of last fiscal year when it suffered a net loss of Rs 19.93 million (LPS: Rs 0.03).
In conjunction with financial results, the Board of Directors of the company announced an interim cash dividend for the quarter ended March 31, 2021 of Rs 4per share i.e., 40%.
The bounce back in the bottom line was subject to greater gross margins amid higher net volumetric growth in sales.
As per financial results sent to PSX, the net turnover of the company surged by 46% YoY due to higher retention while its cost of sales jumped by 9.5% YoY. As a result, the gross profits of the company clocked in at Rs 11.92 billion in 9MFY21, expanding margins from 4.5% to 28%.
On the cost front, the distribution and selling expense dropped by 23% YoY to Rs 485 million during the said period. While the administrative expense and other expenses increased by 4% and 54x YoY in 9MFY21, respectively.
Other income jumped by 31% YoY to Rs 109 million during the period under review.
Meanwhile, the finance cost substantially decreased by 51%YoY due to a decline of 625bps in policy rate that also contributed to the financial performance of the company.
|
Financial Results for the nine months ended March 31st, 2021 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-21 |
Mar-20 |
% Change |
|
Gross turnover |
63,220,973 |
48,774,253 |
29.62% |
|
Less: Rebates and discounts |
(2,242,684) |
(1,700,511) |
31.88% |
|
Less: Sales tax and excise duty |
(19,060,160) |
(18,399,258) |
3.59% |
|
Net turnover |
41,918,129 |
28,674,484 |
46.19% |
|
Cost of Sales |
(30,002,074) |
(27,397,893) |
9.51% |
|
Gross profit |
11,916,055 |
1,276,591 |
833.43% |
|
Other income |
109,310 |
83,304 |
31.22% |
|
Selling and distribution expenses |
(485,704) |
(633,784) |
-23.36% |
|
Administrative expenses |
(434,309) |
(416,940) |
4.17% |
|
Other expenses |
(679,309) |
(12,580) |
5299.91% |
|
Operating profit |
10,426,043 |
296,591 |
3415.29% |
|
Finance costs |
(811,430) |
(1,654,079) |
-50.94% |
|
Share of profit of equity-accounted investees, net of tax |
1,351,284 |
1,200,122 |
12.60% |
|
Profit/(loss) before tax |
10,965,897 |
(157,366) |
– |
|
Income tax expense |
(2,693,575) |
137,441 |
– |
|
Profit/(loss) for the period |
8,272,322 |
(19,925) |
– |
|
Earnings /(loss) per share – basic and diluted (Rupees) |
13.87 |
(0.03) |
– |
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