Bestway Cement’s Operating profits slip by 18.47%

Bestway Cement Limited (BWCL)’s annual profits slipped slightly, to Rs.13.2 billion during FY-18 from Rs.13.3 billion during FY-17, demonstrating a drop of merely 1%.

The company conducted its Board of Directors meeting on August 17, 2018 to discuss the financial earnings for the year ended on June 30th 2018.

During the year, Bestway cement spent 25% more on rebates and discounts, whereas sales tax and excise duty expenses went up by 22%.

The company registered 15% lesser gross profits but Administrative expenses reduced by 14% while other income increased, leading to an 18% drop in operating profits.

However, Bestway also managed to reduce its income tax expense by 66%.

Other than this, Earnings per share marginally reduced to Rs.22.07 per share, from Rs.22.29 per share during the FY-17.

Financial Results for the year ended June 30th 2018 ('000 Rupees)

 

Jun-18

Jun-17

% Change

Gross turnover

                     77,119,557

                     71,440,848

7.95%

Rebates and discounts

                     (2,277,695)

                     (1,810,264)

25.82%

Sales tax and excise duty

                  (21,958,195)

                  (18,007,108)

21.94%

Revenue

                     52,883,667

                     51,623,476

2.44%

Cost of Sales

                  (33,928,169)

                  (29,090,753)

16.63%

Gross profit

                     18,955,498

                     22,532,723

-15.88%

Other income

                           169,967

                             99,860

70.21%

Selling and distribution expenses

                     (1,627,168)

                     (1,558,903)

4.38%

Administrative expenses

                     (2,063,232)

                     (2,404,652)

-14.20%

Other expenses

                     (1,217,711)

                     (1,229,785)

-0.98%

Operating profit

                     14,217,354

                     17,439,243

-18.47%

Net finance costs

                        (600,435)

                        (830,715)

-27.72%

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

                       1,347,545

                       2,055,638

-34.45%

Profit before tax

                     14,964,464

                     18,664,166

-19.82%

Income tax expense

                     (1,806,758)

                     (5,371,526)

-66.36%

Profit 

                     13,157,706

                     13,292,640

-1.02%

Earnings per share – basic and diluted (Rupees)

                               22.07

                               22.29

-0.99%

 

Posted on: 2018-08-17T15:49:00+05:00

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