BWCL earns Rs13.8bn in FY24, rewards shareholders

August 01, 2024 (MLN): Bestway Cement Limited (PSX: BWCL) earned a profit after tax of Rs13.77 billion [EPS: Rs23.09] in FY24, around 16% higher compared to the bottom line of Rs11.89bn [EPS: Rs19.94] in FY23.

Along with the results, the company announced a final cash dividend for the year ended June 30, 2024 of Rs8 per shares i.e. 80%. This is in addition to the interim dividend already paid at Rs. 18 per share i.e. 180%.

The financial data indicates that the company's top line expanded 18.4% YoY to Rs103.92bn compared to Rs 87.74bn in the SPLY.

The cost of sales, which is the main drag on revenue, increased by 18.7% in the review year. However, as sales rose by a greater proportion, the gross profit improved by 18.0% year-on-year (YoY) to Rs 32.23 billion in FY24.

Meanwhile, the gross margins reduced slightly to 31% as compared to 31.1% in FY23.

On the expense side, the company's administrative expenses rose 52.8% YoY to Rs1.52bn, selling and distribution expenses increased 35.0% YoY to Rs1.33bn, and other operating expenses surged by 14.01% YoY to Rs1.15bn.

BWCL took a hit from its other income which slipped 52.1% YoY to stand at Rs662.68m in FY24 as compared to Rs1.38bn in SPLY.

This negative aspect was covered as the company's Share of profit of equity-accounted investees increased by 26.5% YoY to Rs4.7bn in FY24.

The company’s finance cost rose by 64.2% YoY and stood at Rs11.21bn as compared to Rs6.83bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs8.61bn against the Rs10.71bn paid in the corresponding period of last year, depicting a fall of 19.6% YoY.

To sum up, boosted sales and higher income from investments delivered these impressive results for BWCL.

Amount in thousand except for EPS

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