Mohammad Mufazzal
The earnings of listed cement companies declined moderately for January-March quarter of 2018 as compared to the same period of previous year as profit margins squeezed due to multiple reasons included increased prices of raw materials.
Manufacturers said the price of cement has not increased as compared to increased manufacturing cost. That's why the earnings of the listed cement companies declined during the quarter despite the sales volume increased by 12 per cent, they added.
Of the seven listed companies, one witnessed loss while the earnings per share (EPS) of five others declined moderately for the period compared to same period of the previous year. Only one company reported increased EPS for the January-March quarter.
Masud Khan, chief executive officer of MI Cement, said increased prices of raw materials have mainly squeezed the profit margins of the cement companies.
"The price of one tonne of clinkers rose to $53 from $40 while the transport cost rose 66 per cent, leaving an adverse impact on the profit margins," he said.
"The depreciation of local currency against US dollar is also a reason behind the decline in last quarter earnings," Mr. Khan said.
He said the earnings of cement companies would increase in the next quarter as the manufacturers increased the cement price by some extent.
In its un-audited quarterly statement, Heidelberg Cement reported EPS of Tk. 5.34 for January-March, 2018 as against Tk. 6.31 for January-March, 2017. The company's net operating cash flow per share (NOCFPS) was Tk. 31.80 for January-March, 2018 as against Tk. 15.02 for January-March, 2017. The NAV per share was Tk. 88.52 as on March 31, 2018 and Tk. 105.27 as on March 31, 2017.
The loss incurred by Aramit Cement rose in January-March 2018 compared to same period of the previous year. The company reported loss of Tk 1.24 per share for January-March 2018 as against the loss of Tk 0.92 per share for January-March 2017. The company's NOCFPS, however, turned into a positive value of Tk 0.10 for July 2017-March 2018 as against the negative value of Tk 17.50 for July 2016-March 2017. The NAV per share was Tk. 7.36 as on March 31, 2018 and Tk. 11.16 as on June 30, 2017.
LafargeHolcim Bangladesh reported its consolidated EPS of Tk. 0.20 for January-March 2018 as against Tk. 0.27 for January-March 2017. The consolidated NOCFPS was Tk. 0.77 for January-March 2018 as against the negative value of Tk 0.05 for January-March 2017. The consolidated NAV per share was Tk. 13.35 as on March 31, 2018 and Tk. 13.60 as on March 31, 2017.
The EPS of Premier Cement was Tk. 0.20 for January-March 2018 as against Tk. 0.27 for January-March 2017. The company reported consolidated NOCFPS of Tk. 0.77 for January-March 2018 as against the negative value of Tk 0.05 for January-March 2017. The consolidated NAV per share was Tk. 13.35 as on March 31, 2018 and Tk. 13.60 as on March 31, 2017
MI Cement reported its EPS of Tk. 0.42 for January-March 2018 as against Tk. 1.36 for January-March 2017. The NOCFPS was Tk. 8.19 for July 2017-March 2018 as against Tk. 5.17 for July 2016-March 2017. The NAV per share was Tk. 47.01 as on March 31, 2018 and Tk. 47.80 as on June 30, 2017.
Confidence Cement reported EPS of Tk. 2.10 for January-March 2018 as against Tk. 3.65 for January-March 2017. The NOCFPS stood at a negative value of Tk 1.31 for July 2017-March 2018 as against Tk. 4.18 for July 2016-March 2017. The NAV per share was Tk. 74.01 as on March 31, 2018 and Tk. 84.10 as on June 30, 2017.
The company said that for deviation in comparison to the same period of previous year, continuous increase of raw material price without rational increase in the finished goods price is attributable to the financial performance, and increase in payment against imports, interest and advance income tax paid, is attributable to the cash flow position.
Meghna Cement witnessed a rise in EPS for January-March 2018 compared to same period of the previous year. The company's EPS was Tk. 0.88 for January-March 2018 as against Tk. 0.34 for January-March 2017. The NOCFPS has turned into a positive value of Tk 13.08 for July 2017-March 2018 as against the negative value of Tk 5.76 for July 2016-March 2017. The NAV per share was Tk. 35.97 as on March 31, 2018 and Tk. 36.71 as on June 30, 2017.
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