Karachi: Bestway Cement Limited has reported a notable increase in its gross turnover for the nine-month period ending March 31, 2025, despite a challenging market environment marked by declining domestic cement dispatches and rising operational costs. The company's financial performance was detailed in an unaudited financial report released by the Board of Directors.
Domestic cement dispatches in Pakistan fell by 6.6% to 27.5 million tons, a decrease from 29.4 million tons during the same period last year. However, export volumes experienced a growth of 28.1%, rising from 5.1 million tons to 6.5 million tons. Overall industry dispatches saw a slight decline of 1.5% from 34.5 million tons to 34.0 million tons. The reduction in domestic sales volumes was attributed to diminished construction activity influenced by high taxes, interest rates, and construction costs. On the other hand, export growth was driven by competitive pricing and increased global demand.
Bestway Cement Limited's domestic dispatches decreased by 4.5%, which is less than the industry average decline of 6.6%. The company retained its status as the largest cement producer and market leader in Pakistan. According to information available from the Pakistan Stock Exchange (PSX), the company recorded a gross turnover of Rs. 127.80 billion, a 14% increase from the previous year's Rs. 112.10 billion. The net turnover experienced a marginal rise of 2%, from Rs. 80.10 billion to Rs. 81.90 billion, due to increased selling prices necessitated by rising duties, taxes, and distribution costs.
The company's gross profit for the period was Rs. 28.50 billion, up from Rs. 23.70 billion the previous year. Financial charges decreased to Rs. 6.30 billion from Rs. 8.60 billion, attributed to reduced borrowings and interest rates. Profit before tax reached Rs. 27.00 billion, compared to Rs. 16.30 billion in the same period last year. Profit after taxation amounted to Rs. 17.50 billion, up from Rs. 10.30 billion. The earnings per share stood at Rs. 29.4, compared to Rs. 17.3 previously.
In response to the persistent power crisis and the need for sustainable practices, Bestway Cement has adopted alternative energy solutions, with a significant portion of its energy requirements being met through renewable sources. The company has also been recognized for its environmental and water conservation efforts, including being certified as a Green office by WWF Pakistan and leading in water conservation within the industry.
Bestway Cement's commitment to corporate social responsibility is reflected in its investment in local communities, focusing on health services, education, vocational training, and environmental conservation through the Bestway Foundation. The company declared a third interim cash dividend of 80%, totaling 240% year to date, demonstrating its commitment to providing superior returns to shareholders.
Looking to the future, Pakistan's economy is anticipated to grow by 2.5% in FY 2025, with construction activity expected to increase. However, the industry faces challenges from high taxes and operational costs, which may impact profit margins. Despite these obstacles, Bestway Cement asserts its financial and operational resilience, positioning itself as a low-cost producer better equipped to navigate potential headwinds.