HeidelbergCement Bangladesh Ltd.

Company Profile
HeidelbergCement, a German origin business entity initiated its presence in Bangladesh by setting a floating terminal with onboard packing facilities at 1998. In 1999, the group built a Greenfield manufacturing plant near Dhaka namely, "ScanCement International Limited (SIL)". Later in 2000, it purchased controlling interest of "Chittagong Cement Clinker Grinding Co. Limited (CCCGCL)". After that, two companies were amalgamated and the company's name was changed to HeidelbergCement Bangladesh Limited in 2003. The company manufactures gray cement. At present, total production capacity of HEIDELBCEM is 2.37 mn MT and supported by this, it holds around 10% market share of Bangladesh Cement Industry.
Key Revenue Drivers & Company Insight
Sale of Portland Composite Cement (PCC) through two brands, namely Scan Cement and Ruby Cement is the key revenue driver. Other than this, the company earns substantial interest income from FDR.
The company, being one of the top ten players, holds price leadership in the industry through its strong brand image and international quality control.
Financial Performance
Triggered by increased capacity and lower COGS due to stable international price of clinker (core raw material of cement), gross profit margin spurred to 19% in 2012 from 16% in earlier year. Alongside, declining operating costs and bulk amount of financial income assisted in flourishing operating profit margin by 14% and net profit margin by 12%.
Recently, the company has reported net profit after tax of BDT 1,236.73 million with EPS of BDT 21.89 for the period of three months (Jan'13 to Sep'13) as against BDT 1,087.76 million and BDT 19.25 respectively for the same period of the previous year.