Confidence Cement shows steady profit growth in last four years

Confidence Cement Ltd has maintained steady growth in its net profits and dividend disbursements in last four years.
The officials said the company was able to continue with the upward trend as its board and management focused their attention on business plans.
The capability of the cement company to generate profits was also reflected in its returns on equity.
But its earnings declined in the first quarter of this year compared to the same period of the previous year due to a rise in the prices of raw materials.
The company's revenue was over Tk 3.62 billion in 2014 and over Tk 3.63 million in 2015.
Its revenue was over Tk 3.61 billion in fiscal year (FY) 2015-16 and over Tk 3.62 billion in FY 2016-17.
An upward trend was also shown in net profits reported for 2014, 2015, 2015-16 and 2016-17.
The company's net profits were over Tk 218.03 million in 2014 and over Tk 326.14 million in 2015.
It reported net profits over Tk 459.76 million in FY 2015-2016 and over Tk 498.12 million in FY 2016-2017.
Md Delowar Hossain, the company secretary, said their company maintains a congenial working environment.
"Business-focused plans by the board and management are being reflected increasingly in the company's profits and dividend disbursements," Mr Delowar told the FE.
Confidence Cement is a leading cement manufacturing company in the country's private cement sector under the industrial policy 1991.
The officials said the company's production cost gradually rose due to a continuous rise in the prices of raw materials.
Its production cost was over Tk 2.89 billion in 2014, over Tk 3.10 billion in 2015, over Tk 3.31 billion in FY 2015-16 and over Tk 3.78 billion in FY 2016-17.
The company disbursed 25 per cent cash dividend in 2014 while 27.50 per cent in 2015, 37.50 per cent in 2015-16 and 15 per cent cash and 20 per cent stock dividends in FY 2016-17.
Due to steady growth in its net profits, the company's earnings per share (EPS) gradually rose in last four years.
The company reported its EPS of Tk 4.85 in 2014, Tk 7.25 in 2015, Tk 10.22 in FY 2015-16 and Tk 11.07 in FY 2016-17.
Its net asset value (NAV) per share was Tk 63.66 in 2014, Tk 68.95 in 2015, Tk 73.72 in FY 2015-16 and Tk 84.09 in FY 2016-17.
But the company showed a mixed trend in net operating cash flow in the year of 2014 and FY 2016-17.
The net operating cash flow per share was Tk (2.72), a negative value, in 2014, Tk 9.02 in 2015, Tk 7.84 in FY 2015-16 and Tk 9.35 in FY 2016-17.
The company's returns on equity were 7.67 per cent in 2014, 10.93 per cent in 2015, 14.87 per cent in FY 2015-16 and 14.03 per cent in FY 2016-17.
Returns on equity measure a company's profitability by revealing how much profit a company generates with the money shareholders have invested.
The EPS of Confidence Cement declined moderately in the first quarter of 2018 compared to the same period of the previous year due to a continuous rise in the prices of raw materials.
The EPS was Tk 2.10 for the January-March period in 2018 as against Tk 3.65 for the same time in 2017. The EPS was Tk 5.09 for July 2017-March 2018 as against Tk 7.71 for July 2016-March 2017.
The net operating cash flow per share (NOCFPS) was Tk 1.31 for July 2017-March 2018 as against Tk 4.18 for July 2016-March 2017.
The company in a disclosure said the deviation in earnings was because of a continuous increase in raw material prices without rational rise in the prices of finished goods.
"The increased payments against imports, interest and advance income tax paid, are also responsible for the cash flow position observed during the January-March period of this year."
Confidence Cement, an 'A' category company, was listed on the stock exchanges in 1995.
The company's sponsors-directors hold 29.87 per cent shares, followed by institutions 36.14 per cent and general public 33.99 per cent as of May 31, 2018.
The company's share trading closed at Tk 147.50 each on Tuesday with a marginal rise by 6.18 per cent or Tk 8.7.

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