Heidelberg Cement secured a profit of Tk 505.10 million in the nine months to September, a turnaround from a loss of Tk 241.31 million reported for the same period of the previous year.
Higher selling prices "compared to the cost of goods sold" helped the company bounce back, the company said in its earnings note.
The cement maker did not see the demand for its products decline even after hiking prices, as its revenue rose 8 per cent year-on-year to Tk 13.86 billion in January-September this year.
The earnings per share rose to Tk 8.94 for January-September 2023, against a loss of Tk 4.27 per share for the same period a year ago.
However, the company's profit gradually dropped from the first quarter through the third quarter.
It had reported an EPS of Tk 6.85 for January-March this year, as opposed to a loss of Tk 2.97 per share for the first quarter of the previous year.
The EPS then fell to Tk 1.61 in Q2 ended in June this year and then slid further to Tk 0.48 in Q3 ended in September.
The company secretary and the legal director refused to speak to the FE by phone when reached out for an explanation.
The company in its disclosure said that other than higher selling prices, efficient management had facilitated the business recovery.
Warehousing, distribution and selling expenses rose more than 23 per cent year-on-year to Tk 367.43 million in January-September.
Administrative expenses were also up at Tk 461.34 million in the nine months to September from Tk 415.19 million a year ago.
Heidelberg saw a higher cash collection that boosted the operating cash flow for January-September, compared to the previous year.
The net operating cash flow per share jumped to Tk 24.91 for January-September 2023 from Tk 2.83 for the same period last year.
The company also experienced a moderate growth in net asset value, riding on higher net profit and improvement in net working capital.
The stock of Heidelberg Cement remained stuck at the floor price of Tk 179.10 between September 2022 and April 2023.
Then it exhibited a rally and peaked at Tk 337.60 on May 7 at a time when many other market leaders, including multinational companies, saw stocks moving up the floor.
In the months after, Heidelberg climbed down and finally closed at Tk 241.10 per share on Wednesday, with a loss of 2.70 per cent from the previous session.
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