Most of the listed cement manufacturers have witnessed a moderate profit growth year on year in the July-March period of the fiscal year 2024, buoyed by diminished foreign exchange loss following the return of stability in the currency exchange rates.
While the companies demonstrated mixed performance in revenue growth, efforts to reduce administrative and distribution expenses played a crucial role.
Despite strides in management efficiency and revenue upsurge for some, increased finance costs impacted overall profit growth.
However, import-oriented companies notably saw profit upticks.
Despite lower sales volume, the reduction in foreign exchange loss was the main factor behind the profit growth in the cement industry, according to Masud Khan, Chief Adviser to the Board of Crown Cement.
Cement consumption declined as people's disposable income has dipped amid inflationary pressure, he said.
Confidence Cement
The company's revenue declined in the period of July-March of FY'24, compared to the same period in the previous fiscal year.
Nevertheless, it has managed to post year-on-year growth in profit.
The reduction in foreign exchange loss coupled with a marginal reduction in administrative, selling and distribution expenses led to a profit growth.
The company's foreign exchange loss declined 84 per cent to Tk 55.21 million in July-March of FY'24, compared to the same period of FY'23.
That's why the company was able to report a 42 per cent year-on-year growth in profit in July-March of FY'24, overcoming the impact of 110 per cent year-on-year rise in bank interest and other charges.
The reduced administrative, selling and distribution expenses also facilitated the profit growth a bit.
The company's share price closed at Tk 76.50 on Thursday.
Premier Cement
The company experienced a robust growth in profit in July-March of FY'24, compared to the same period in the previous fiscal year.
It has reported a profit worth Tk 547.35 million in July-March, FY'24 as against Tk 48.90 million reported in the same period of the previous fiscal year.
It has experienced a 24 per cent year-on-year growth in revenue to Tk 20.42 million for July-March, FY'24.
The company's poor performance observed in July-March, FY'23 due to post impact of Ukraine-Russia war was another reason behind the steep profit growth observed in July-March, FY24.
Meghna Cement
The company has experienced a modest year-on-year growth in revenue in January-March, FY'24.
But the year-on-year operating profit declined 17 per cent to 55.28 million because of a rise in costs of goods sold.
The finance costs rose 14 per cent, but a decline in tax expenses helped the company to experience a 373 per cent year-on-year growth in profit in January-March, FY24.
But a sharp decline in revenue coupled with increased finance costs played a role behind the decline in profit for July-March, FY'24 compared to the same period of the previous fiscal year.
Meghna Cement has experienced a 26 per cent year-on-year decline in profit to Tk 15.34 million in July-March, FY24.
Heidelberg Cement
The company has experienced a 15 per cent year-on-year decline in revenue in January-March of the calendar year 2024.
Due to prudent management, its warehousing, distributing and selling expenses declined along with experiencing a marginal decline in administrative expenses.
Riding on such efficient management, Heidelberg Cement has experienced a 1.63 per cent year-on-year growth in profit to Tk 393.21 million in January-March.
Its share price experienced a downward trend in March and declined to Tk 211.10 on March 20 from Tk 269.5 on March 5.
Later, the price exhibited volatility and closed at Tk 220.90 on Thursday.
Other cement
companies
Of other listed cement makers, Crown Cement has experienced a 173 per cent year-on-year growth in profit to Tk 876.15 million in July-March, FY'24.
The company, however, saw a 33 per cent year-on-year decline in profit to Tk 170.77 million in January-March, FY'24.
Aramit Cement incurred a loss of Tk 144.32 million in January-March, FY'24 while its loss in July-March of FY'24 was Tk 411.30 million.
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