Bestway Cement profit rises 35% to Rs. 5.50 billion, declares Rs. 10 dividend

Substantial profit share from associates and a sharp drop in finance costs drive profitability despite margin pressure

KARACHI – Bestway Cement Limited (PSX: BWCL) has announced a strong financial performance for the quarter ended September 30, 2025. The company reported a net profit of Rs. 5.50 billion, a significant 35.3% increase from the Rs. 4.06 billion profit recorded in the same quarter last year.

Earnings per share (EPS) surged to Rs. 9.22, up from Rs. 6.81 in 1QFY24.

In light of these results, the Board of Directors declared an interim cash dividend of Rs. 10.00 per share for the quarter.

The company’s top-line showed resilience, with gross turnover increasing 8.04% to Rs. 41.22 billion. After accounting for higher rebates and taxes, net turnover grew by 4.38% to Rs. 25.89 billion. However, the cost of sales grew at a faster pace, rising 11.94%. This led to an 11.17% decline in gross profit to Rs. 7.21 billion and a contraction in the gross margin.

Performance Highlights (Rs. in billion)

  • Net Turnover: 25.89 (1QFY24: 24.80) | +4.4%

  • Gross Profit: 7.21 (1QFY24: 8.12) | -11.2%

  • Operating Profit: 6.05 (1QFY24: 6.91) | -12.5%

  • Profit After Tax: 5.50 (1QFY24: 4.06) | +35.3%

  • Earnings Per Share (EPS): Rs. 9.22 (1QFY24: Rs. 6.81) | +35.4%

The standout feature of the quarter was the phenomenal 121.77% increase in the share of profit from equity-accounted investees, which contributed Rs. 3.40 billion to pre-tax profit. This, combined with a substantial 42.58% reduction in finance costs, more than compensated for the pressure on operating profit.

The company also demonstrated disciplined cost control, with total operating expenses declining by 8.16%, led by a significant reduction in selling and distribution costs.

Consequently, the net profit margin for the quarter improved markedly to 21.2%, up from 16.4% in the same period last year, highlighting a highly successful quarter of financial management and strategic investment returns.

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