The listed local cement manufacturing companies performed mixed for the fiscal year 2019 as the 'profit margin' of the industry declined.
The manufacturers said the profit margin dropped mainly because of the hike in cost of production.
Of five local cement companies, only two witnessed marginal rise in EPS (earnings per share), while two others incurred losses for the year ended on June 30, 2019.
"The demand of cement was much lower than the amount manufactured in 2019. So, the price has not increased compared to the rise in production cost," said Masud Khan, chief advisor to the board of the M. I. Cement factory.
He said the cost of sales increased following the hike in the price of raw materials and production cost.
"As a result, there was no positive change in the gross profit margin of the cement companies," Mr. Khan said.
Of the companies, Aramit Cement incurred loss in last three consecutive years and recommended no dividend as well for this period.
The company reported a loss of Tk 5.15 per share for the year ended on June 30, 2019 against the loss of Tk 4.56 per share for same period of the previous year.
The company has also reported NAV per share of Tk. 0.85 and NOCFPS of Tk. (9.23), a negative value, for the year ended on June 30, 2019 as against Tk. 6.00 and Tk. 11.26 respectively for the same period of the previous year.
Confidence Cement has witnessed a marginal rise in EPS for the year ended on June 30, 2019 compared to previous year.
The company's EPS rose to Tk 6.01 for 2019 from Tk 5.67 distributed for the previous year.
The company has reported NAV per share of Tk. 67.24 and NOCFPS of Tk. (7.32) the year ended on June 30, 2019 as against Tk. 74.73 (restated) and Tk. (9.43) respectively for the same period of the previous year.
The company's board of directors has recommended 15 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2019.
The company distributed 15 per cent cash dividend along with issued 20 per cent stock dividend for 2018.
M.I. Cement Factory has recommended 10 per cent cash dividend for the year ended on June 30, 2019. The company distributed 15 per cent cash dividend for 2018 and 20 per cent cash dividend for 2017.
The company's EPS declined for 2019 compared to the previous year. It has reported EPS of Tk. 1.69 for 2019 against Tk 2.13 reported for the previous year.
M.I. Cement Factory has also reported NAV per share of Tk. 48.22 and NOCFPS of Tk. 3.57 for 2019 as against Tk. 47.98 and Tk. 1.36 respectively for previous year.
Premier Cement Mills has witnessed a marginal rise in EPS for 2019 compared to previous year.
The company's consolidated EPS rose to Tk 5.80 each for the year ended on June 30, 2019 from Tk 4.18 calculated for same period of the previous year.
It has also reported consolidated NAV per share of Tk. 48.19 and consolidated NOCFPS of Tk. 6.05 for the year ended on June 30, 2019 as against Tk. 43.13 and Tk. 6.88 respectively for the same period of the previous year.
The company's board has recommended 10 per cent cash dividend for the year ended on June 30, 2019.
The company distributed 10 per cent cash dividend and 20 per cent cash dividend for 2018 and 2017 respectively.
Meghna Cement Mills has not yet recommended dividend for the year ended on June 30, 2019.
The company has informed that a meeting of the board of directors will be held tomorrow (Monday) to consider, among others, audited financial statements for the year ended on June 30, 2019.
Meghna Cement Mills has recommended 10 per cent stock dividend for the year ended on June 30, 2018.
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