It is a public limited company listed on Karachi Stock Exchange. It was incorporated on December 22, 1993 and is engaged in production and sale of cement. Its manufacturing facilities are located in Hattar District Haripur NWFP.
Bestway Cement plant has annual production capacity of 990 thousand metric tons of clinker. Last year FY 2002-03, the company utilised 80.3% capacity as it produced 795.2 thousand metric tonnes.
During nine months under review (9M 2003-04), the company produced 664.46 thousand tonnes of clinker.
At this pace of production, it can be figured out that annualised estimated production would be 886 thousand metric tonnes which works out to 89.5% of utilised capacity which is substantial at improvement over last year's output.
Cement dispatches for 9M 2003-04 increased by 131.81 thousand tonnes to 736.18 thousand tonnes over despatches of 604.37 thousand tonnes in the same period last year. This works out to 22% increase in despatches which has been attributed to mainly rise in both domestic sales and exports to Afghanistan.
Chief Executive Zameer M. Choudhry emphatically stated that the company successfully retained its position as the leading cement exporter to Afghanistan. Bestway Cement's market share of exports for the period was 23%. During 9M 2003-04, the company generated sales at Rs 1843.91 millions showing increase of Rs 547.91 mln from Rs 1296.00 mln posted for the corresponding period last year. This shows 42.3% growth in sales in terms of value.
Incidentally, sales of the nine months have already exceeded the last full year's sales of Rs 1792.22 mln. Despite large increase in sales by Rs 547.91 mln, the selling and distribution expenses increased by a nominal amount of a lakh rupees only. Financial charges slashed by Rs 108 mln.
There was further bonanza as its investment in UBL paid off. The bank declared handsome dividend of 22%. Other income of Rs 112.25 mln includes Rs 89.16 mln on account of this dividend. The company's profit after tax soared to Rs 470 mln by 1657% over SPLY.
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Performance Statistics (Million Rupees)
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Balance Sheet -As At-
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March 31 June 30
2004 2003
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Share Capital - Paid-Up: 1,934.70 1934.70
Accumulated Profit: 716.15 245.94
Shareholders Equity: 2650.85 2180.64
L.t Debts: 1,854.91 1,700.90
Deferred Liabilities: 163.57 19.99
Current Liabilities: 1,813.53 262.78
Tangible Fixed Assets: 3,215.03 3,306.07
L.T Investments: 1,862.82 1,864.95
L.T Deposits, Prepayments
And deferred Costs: 18.89 19.19
Current Assets: 1,386.12 1,344.10
Total Assets: 6,482.86 6,534.31
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Profit & Loss A/C For
Nine Months Ended March 31 2004 2003
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Sales Net: 1,843.91 1,296.00
Gross Profit: 693.67 285.50
Operating Profit: 658.60 242.55
Other Income: 112.25 25.26
Financial (Charges): (110.29) (218.37)
Profit Before Taxation: 627.53 46.97
Profit After Taxation: 470.20 26.76
Earning Per Share (Rs): 2.43 0.14
Share Price (Rs) on 05/08/04 38.00 -
Price/Earning Ratio: 15.63 -
Book Value of Share (Rs): 13.70 11.27
Debt/Equity Ratio: 41:59 44:56
Current Ratio: 0.76 0.51
Gross Profit Margin (%): 37.62 22.03
Net Profit Margin (%): 25.50 2.06
R.O.A (%): 7.25 0.40
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