BWCL in black with Rs16.42bn profit in 9MFY23

May 02, 2023 (MLN): Bestway Cement Limited (PSX: BWCL) profits increased by 12.37% YoY to reach Rs16.42 billion [EPS: Rs19.53] in 9MFY23, up from Rs10.31bn [EPS: Rs17.38] in the same period last year (SPLY).

Along with the result, the company announced an interim cash dividend for the quarter ended 31 March 2023 of Rs5 per share (i.e., 50%).

Going by the financial statement, the company's net turnover stood at Rs64.49bn in 9MFY23, a substantial 25.67% YoY growth from Rs51.32bn in SPLY. Meanwhile, the cost of sales increased by 26.91% YoY to Rs44.64bn.

The gross profit for 9MFY23 amounted to Rs19.85bn, marking a 22.97% YoY growth compared to Rs16.14bn in SPLY.

During the period, the brownfield cement plant of 7,200 tonnes of clinker per day along with 9 MWs Waste Heat recovery power plant at Hattar and the greenfield plant of identical capacity at Mianwali site commenced cement production on 17 February 2023 and 29 March 2023 respectively.

With these two plants becoming operational, the company’s installed capacity has reached 15.4 million tonnes of cement per annum making Bestway the largest cement producer in the country.

On the expense side, selling and distribution expenses slightly decreased by 1.25% YoY, while administrative expenses increased by 3.1% YoY and other operating expenses decreased by 19.54% YoY.

Meanwhile, the company recorded a net other income of Rs209.28 million in 9MFY23.

The company faced a significant increase in finance costs, which amounted to Rs3.53bn in 9MFY23, up by a significant 4.7x YoY from Rs751.94m in SPLY, mainly due to higher interest rates and increased borrowings.

On the tax front, the company paid Rs4.83bn in 9MFY23, 19.05% higher than the tax paid in the corresponding period last year, which was Rs4.06bn.

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