Bestway Cement Limited is a part of the Bestway Group of UK which has a fairly diversified portfolio with interests in retail outlets, real estate business, ethnic food import, and distribution and beverages import beside the core wholesale business in the United Kingdom.
In response to the Government of Pakistan's call for non resident Pakistanis to invest in Pakistan, Bestway Group acquired a rice mill in Hafizabad through privatisation process and then invested in cement sector in the shape of Bestway Cement Ltd.
The company was incorporated in the Federal Capital Islamabad in December 1993 as a public limited company. Its registered office is located at UBL Building Jinnah Avenue Islamabad whereas its cement plant is situated in NWFP in Hattar.
It was listed on Karachi Stock Exchange in 2001 and at present Bestway Cement shares are trading at Rs 42 per share which is more than four times of the par value. During the last one year, the market value of the share ranged between Rs 38 and Rs 49.76 per share.
The new project of the company a new cement plant of 6000 tpd (tonnes per day) capacity in Tehsil Chao Saidan Shah, District Chakwal Punjab continues to make a good progress as the civil works are underway in full swing.
During the nine months period ended March 31, 2005 (9M 2004-05) the company's total despatches were recorded at 848,142 tonnes (9M 2003-04: 736,163 tonnes) which included 204,267 tonnes of cement exported to Afghanistan (9M 2003-04: 171,749 tonnes) registering 15.2% increase in despatches as compared to same period last year. The company attained economies of scale as it crossed the 100 percent capitalisation by 9%.
Sales (net) in terms of value amounted to Rs 2.404 billion as compared to Rs 1.844 billion in the same period last year (SPLY) registering impressive growth of 30.4%. The production performance of the company outpaced the industry's capacity utilisation was 89%. However the average growth of industry despatches was better by 20% whereas company's despatches increased by 15.2% and lagged behind the industry's.
Operating profit registered impressive growth of 43.4% which was possible because of stable selling prices as well as growth in volumes.
The Bestway Cement Investment in UBL generated good dividend of 15% for the year ended December 31, 2004. Other income of Rs 68.08 million includes Rs 59.44 million on account of the same. The company generated Earning Per Share (EPS) at Rs 2.99 (9M 2003-04: Rs 2.21).
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2005 2004
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Share Capital-Paid-up: 2,128.17 1,934.69
Reserves-Issue of Bonus Shares: - 193.47
Accumulated Profit: 1,174.10 537.59
Shareholders Equity: 3,302.27 2,665.75
L.T. Debts: 1,764.94 1,895.43
Deferred Liabilities: 480.21 250.53
Current Liabilities: 1,899.38 1,176.64
Tangible Fixed Assets: 4,112.23 3,200.16
L.T. Deposits, Prepayments,
Deferred Cost: 18.89 18.89
L.T. Investments: 1,862.82 1,862.82
Current Assets: 1,452.86 906.48
Total Assets: 7,446.80 5,998.35
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Profit & Loss A/c for Nine Months Ended
March 31 2005 2004
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Sales-Net: 2,404.49 1,843.92
Gross Profit: 1,028.00 693.67
Operating Profit: 944.20 658.60
Other Income: 68.08 112.25
Financial (Charges): (82.34) (110.29)
Profit Before Taxation: 883.45 627.53
Profit After Taxation: 636.51 470.20
Earnings Per Share (Rs): 2.99 2.21
Share Price (Rs) on 18/07/05: 42.00 -
Price/Earning Ratio: 14.05 -
Book Value of Share (Rs): 15.52 13.78
Debt/Equity Ratio: 35:65 42:58
Current Ratio: 0.76 0.77
Gross Profit Margin (%): 42:75 37:61
Net Profit Margin (%): 26.47 25.50
R.O.A. (%): 8.54 7.85
R.O.E. (%): 19.27 17.63
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COMPANY INFORMATION: Chairman: Sir Mohammed Anwar Pervez O.B.E. H.Pk.; Chief Executive: Zameer Mohammad Choudrey; Director & CFO: Muhammad Irfan A. Sheikh; Company Secretary: Mohammad Akram; Registered Office: UBL Building, Jinnah Avenue Islamabad; Web Address: Not Reported; Plant: Suraj Gali Road, Village Shadi, Hattar, Distt. Haripur NWFP.
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