Bestway Cement’s profits dip slightly in 3QFY24

April 18, 2024 (MLN): Bestway Cement Limited (PSX: BWCL) recorded a slight fall of 1% YoY in its profitability in the third quarter of FY24, recording a profit after tax at Rs3.54 billion [EPS: Rs5.93], compared to a profit of Rs3.57bn [EPS: Rs5.99] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend for the quarter at Rs6 per share.

Going by the results, the company's top line rose 15.9% YoY to Rs25.2bn as compared to Rs21.74bn in SPLY.

The cost of sales rose by 8.7% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 35.5% YoY to Rs7.91bn in 3QFY24.

The gross margins improved to 31.40% as compared to 26.86% in SPLY.

Moreover, during the review period, other income soared by 76.4% YoY to stand at Rs113.53m in 3QFY24 as compared to Rs64.34m in SPLY.

On the expense side, the company observed a decrease in administrative expenses by 33.2% YoY to clock in at Rs309.58m, while other expenses soared to Rs286.71m during the review period.

The company’s finance cost skyrocketed by 98.4% YoY and stood at Rs2.87bn as compared to Rs1.44bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs1.95bn against the Rs1.24bn paid in the corresponding period of last year, depicting a rise of 57.6% YoY.

Meanwhile, over the nine months of the current fiscal year, BWCL's profits have dipped by 11.4% YoY, worth Rs10.32bn [EPS: Rs17.31], compared to a profit of Rs11.64bn [EPS: Rs19.53] in 9MFY23.

Amount in thousand except for EPS

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