The Board of Directors at Bestway Cement Limited announced financial results for nine months to March, 2016. Bestway's turnover on a consolidated basis soared by more than 49 percent from Rs 22.03 billion to Rs 32.91 billion. This was largely due to acquisition of Pakcem Limited and increase in domestic demand. Increase in turnover was somewhat subdued by shrinking export volumes and a decline in retention prices during the period. Gross margin of Rs 14.39 billion grew by more than 68 percent over the same period last year.
Profit before tax for nine months amounted to Rs 12.64 billion, depicting an increase of 45 percent as compared to Rs 8.69 billion during the nine months ended 31 March, 2015. The company's consolidated profit after tax also registered a growth of 49 percent to reach Rs 9.24 billion in the period under review against Rs 6.22 billion from the corresponding period of last financial year.
On a consolidated basis, domestic sales volume increased by 17 percent from 3.764 million tonnes to 4.301 million tonnes, while exports saw a decline of seven percent from 0.702 million tonnes to 0.649 million tonnes in the nine months period. Overall, cement dispatches increased by 11 percent during the reporting period to 4.955 million tonnes from 4.468 million tonnes.
The Company persevered not only in successfully increasing its market share in the north zone from 16.5% to 22.3%, but has become the largest cement producer in the country. Despite competition in international markets, Bestway continued to be one of the largest exporters of cement to Afghanistan and India.
Consolidated earnings per share of the Company for the period ended 31 March 2016 stood at Rs 15.64 against Rs 10.74 from 31 March 2015. The Company announced an interim dividend of Rs 2.50 per share keeping in view its excellent performance. Work on the waste heat recovery power project at Pakcem Kallar Kahar operations is progressing at full pace and is on schedule. The implementation of this project, which is expected to cost $15 million, will not only support in alleviating the country's power crisis to a certain extent, but also reduce cost of production whilst generating clean, affordable energy. The shareholders of Bestway Cement Limited and Pakcem Limited in their respective Extraordinary General Meetings held on 4 May, 2016 approved the scheme of arrangement for amalgamation of Pakcem Limited into Bestway Cement Limited.-PR