BWCL declares Rs6 DPS despite profits drop to Rs3.08bn in 3QCY23

October 26, 2023 (MLN): Bestway Cement Limited (PSX: BWCL) experienced a fall of 7.06% YoY in its profit for the 3QCY23, its profit after tax standing at Rs 3.08 billion [EPS: 5.16], compared to Rs3.31bn [EPS: 5.55] reported in the Same Period Last Year (SPLY).

Along with the 9MCY23, the Board of Directors (BoD) of BWCL has recommended a cash dividend for 3QCY23 at Rs6/- per share i.e. 60%.

Going by the results, the company's top line grew by 38.99% YoY to Rs25.86bn as compared to Rs18.61bn in SPLY.

The cost of sales also rose by 49.30% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 17.79% YoY to Rs7.17bn in 3QCY23.

On the expense side, the company observed a rise in Selling and distribution expenses by 47.52% YoY to clock in at Rs287.09m during the review period.

Conversely, BWCL's administratrive and other expenses fell by 15.41% and 30.69% YoY to Rs348.85m and Rs221.76 respectively in 3QCY23.

Mobving forward, the profit and loss statement showed that other income soared by to Rs222.13m in 3QCY23 as compared to Rs38.72m in SPLY.

The company's profitability was further supported by the Share of profit of equity-accounted investees, as it increased by 2.29x YoY to Rs1.14bn during the review period.

BWCL's finance costs surged by3.37x YoY and stood at Rs3.02bn as compared to Rs896.36m in 3QCY22, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs1.58bn against the Rs1.49bn paid in the corresponding period of last year, depicting a decrease of 6.16% YoY.

BWCL and KSE-100 YTD Performance

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