BESTWAY CEMENT LIMITED
BUILDING ON STRENGTH
Company Information
Directors' Report
Condensed Interim Statement of Financial Position
Condensed Interim Statement of Prot or Loss (Un-audited)
Condensed Interim Statement of Prot or Loss and other Comprehensive Income (Un-audited)
Condensed Interim Statement of Changes in Equity
Condensed Interim Statement of Cash Flows (Un-audited)
Notes to the Condensed Interim Financial Statements (Un-audited)
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COMPANY INFORMATION
Syed Asif Shah
Mrs. Fauzia Ahmad | Mianwali | |||||||
Main Kalabagh Road, | ||||||||
Mr. Tariq Rashid | ||||||||
Dhair Umaid Ali Shah Pakka, | ||||||||
Tehsil & District Mianwali, | ||||||||
Mr. Tariq Rashid | Punjab, Pakistan. | |||||||
Email: gmproject.mwl@bestway.com.pk | ||||||||
Syed Asif Shah | ||||||||
Mrs. Fauzia Ahmad | ||||||||
Lord Zameer Choudrey | ||||||||
Nomination Committee | ||||||||
Lord Zameer Choudrey | Email: bestwaysales@bestway.com.pk | |||||||
Mr. Muhammad Irfan Anwar Sheikh | ||||||||
Mr. Haider Zameer Choudrey | ||||||||
Risk Management Committee | ||||||||
Lord Zameer Choudrey | ||||||||
Mr. Muhammad Irfan Anwar Sheikh | ||||||||
Mr. Haider Zameer Choudrey |
Hassan Niazi
Muhammad Danish Khan (Acting)
Bank of Khyber
Bank of Punjab
DIRECTORS' REPORT
The Board of Directors take pleasure in presenting their report together with unaudited nancial statements for the quarter ended 30 September 2023.
Industry Overview
Domestic cement dispatches increased by 18% to 10.13 million tonnes from 8.60 million in the same quarter of last year. Export volumes also grew by 72% from 1.02 million tonnes to 1.75 million tonnes. Overall, dispatches by the industry increased by 23% from 9.63 million tonnes to 11.88 million tonnes for the period under review. The growth in both domestic and export sales volumes is primarily driven by relatively less uncertain economic and political environment in the country and low base impact as Q1 volumes last year were impacted by heavy rains and oods within the country.
Production and Sales Review | Quarter ended 30 | Quarter ended 30 | Increase/ | Percentage | |
September 2023 | September 2022 | (Decrease) | |||
Tonnes | Tonnes | Tonnes | % | ||
Clinker production | 1,818,800 | 1,321,364 | 497,436 | 38% | |
Cement production | 1,802,876 | 1,440,949 | 361,927 | 25% | |
Cement and Xtreme Bond sales | 1,793,296 | 1,421,449 | 371,847 | 26% |
Your Company's total cement dispatches increased by 26%, which is higher than the industry's average growth. This is mainly due to the two new production lines at Hattar and Mianwali that came online in February and March 2023 respectively, also helped by the low base eect from last year as explained above.
Despite erce competition, Bestway successfully retained its position as the largest cement producer and the market leader in the country.
Operating Highlights
The Company recorded gross turnover of Rs. 36.2 billion in the quarter ended 30 September 2023, 43% higher compared with Rs. 25.4 billion during the same quarter of last year. Net turnover for the quarter increased by 39%, from Rs. 18.6 billion to Rs. 25.9 billion. Higher revenue was mainly driven by 26% increase in sales volumes. The increase in selling prices, which was necessitated by an exorbitant increase in the input costs, also contributed to the revenue growth.
Gross prot for the quarter was reported at Rs. 7.2 billion as compared with Rs. 6.1 billion during the same quarter of last year.
Financial charges Increased to Rs.3.0 billion for the quarter as against Rs. 0.9 billion for the same quarter of last year due to signicantly higher interest rates and additional borrowings for new projects.
Prot before tax amounted to Rs. 4.7 billion as compared to Rs. 4.8 billion for the quarter ended 30 September 2022. Prot after taxation for the quarter amounted to Rs. 2.9 billion as compared to Rs. 3.3 billion for the same quarter of last year.
Earnings per share of the Company for the quarter stood at Rs. 5.16 as against Rs. 5.55 for the same quarter of last year.
Plants' Performance
Bestway follows an elaborate plan of preventative maintenance. This proactive approach ensures ecient and stable operations with minimum disruptions. During the period under review, all our cement plants operated satisfactorily.
Alternative Energy Initiatives
Your Company was the front runner in deploying Waste Heat Recovery Power Generation and one of the rst to harness Solar Power Generation at all of its plants. As cement manufacturing is an energy-intensive process and power represents one of the largest costs of production, adoption of WHRP and Solar power generation has enabled Bestway to not only reduce its cost of power signicantly but also its reliance on the grid and its environmental footprint. During the period under review, your Company met more than half of its energy requirement through these sources making it the leader in adopting green and renewable energy in Pakistan's industrial sector.
Environment Conservation
Bestway Cement reputes itself as a responsible corporate citizen and gives highest priority to protecting and creating a healthier environment for not only its employees, but also for the communities where it has established its plants. The wellbeing of the environment in which Bestway operates is considered an integral part of the Company's success. Our plants are ISO 14001:2004 Environmental Management System (EMS) certied.
All of our plants are not only compliant with the environmental standards but they also surpass the more stringent international environmental standards
In addition to being the leader in adopting green and renewable energy, your Company is also the leader in water conservation after installation of Air Cooled Condenser Systems, the rst and only one in the Cement industry, instead of the conventional water-cooled system which has enabled reduction of about 80% of industrial water requirements.
Rainwater harvesting has been a key area of focus and your Company has made huge strides in not only improving the existing rainwater harvesting ponds signicantly at all its plants but also establishing new ones. You would be pleased to learn that 100% of industrial water requirement at our Chakwal and Kallar Kahar plants are being fullled through rainwater harvesting.
Page03 1st Quarter Report I 2023
Bestway Cement ardently supports WWF Pakistan. It is one of the only few companies in Pakistan which has been certied as a Green Oce by WWF Pakistan.
Corporate Social Responsibility
Bestway invests in its operations for long term and appreciates that it has a special responsibility towards the local communities. The Company takes pride in its proactive development and welfare of the under-privileged through activities such as improving access to health services, education, vocational trainings, environmental conservation programmes, and helping create jobs and local employment. Your Company conducts its corporate social responsibility activities mainly through its charitable trust, Bestway Foundation.
In response to the signicant devastation caused by the 2022 oods, Bestway Group embarked upon a bold initiative called Hum Sahara Programme with an estimated cost of Rs. 600 million. The aim of this programme was to provide crucial aid and shelter to those who were most severely impacted by the oods.
This endeavour included the distribution of hot meals, ration bags, water ltration units, essential medicines and medical assistance in more than 50 villages across Sindh, Baluchistan, Punjab, and Khyber Pakhtunkhwa, ultimately beneting more than 100,000 individuals. More than 5,000 tents were also provided to the aectees in dierent parts of the country.
The Hum Sahara Programme also entailed an ambitious plan to construct 500 permanent small houses for the most aected families. As of reporting date 412 of such houses have already been completed and handed over while more are under construction.
Return to Shareholders
Your company remains mindful of providing a superior return to its shareholders. The directors therefore feel great pleasure in declaring rst interim cash dividend of 60%.
Future Outlook
Pakistan is facing unprecedented economic and political challenges. Persistently high ination, very high interest rates and depleted foreign exchange reserves have signicantly impacted the economic outlook of the country.
Various measures recently adopted by the interim government in addition to the Standby arrangement with the IMF are expected to somewhat stabilise the economy. However, it is likely to take some time before the economy begins to demonstrate signs of recovery. In the meantime, Pak Rupee is likely to remain under pressure. Ination, however, is expected to start cooling o in the foreseeable future, which should also result in softening of interest rates.
Unreasonably high taxation, persistent ination, high interest rates and unfriendly business environment will continue to bear down on the cement industry and cement manufacturers may nd it dicult to pass on increase in costs which will likely impact the prot margins.
Economic challenges being faced by Afghanistan have massively dented exports of cement from the North and this situation is likely to persist for the foreseeable future.
Bestway is one of the lowest cost-producers in the country which means that it is better placed to face o any headwinds as compared to most of its competitors. Your management is always cognisant of the challenges that might lie ahead and will continue to proactively adapt in order to ensure optimum performance by your Company and superior returns for its shareholders.
Acknowledgements
The directors wish to place on record their appreciation for the continued support, contribution and condence demonstrated in the Company by its shareholders, members of sta, customers, suppliers, bankers and various government agencies throughout the quarter.
For and on behalf of the Board | |
Lord Zameer Choudrey | Muhammad Irfan A. Sheikh |
Chief Executive | Managing Director |
Islamabad | |
25 October 2023 |
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BESTWAY CEMENT LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
Note
EQUITY
Authorised share capital
700,000,000 (30 June 2023: 700,000,000) ordinary shares of Rs. 10 each
Share capital and reserves
Share capital
Capital reserves
Revenue reserves
LIABILITIES
Non-current liabilities
Long term nancing
Deferred income - Government grant
Deferred tax liability - net
Employee benet obligations
Current liabilities
Trade and other payables
Short-term borrowings
Current portion of long term nancing
Current portion of deferred income - Government grant
Unclaimed dividend
Total liabilities
Total equity and liabilities
CONTINGENCIES AND COMMITMENTS | 6 |
30 September | 30 June | ||||
2023 | 2023 | ||||
--------------(Rupees'000)-------------- | |||||
(Un-audited) | (Audited) | ||||
7,000,000 | 7,000,000 | ||||
5,962,528 | 5,962,528 | ||||
8,506,982 | 8,457,184 | ||||
46,940,317 | 47,425,904 | ||||
61,409,827 | 61,845,616 | ||||
46,926,994 | 46,338,481 | ||||
2,063,565 | 2,220,086 | ||||
20,686,499 | 20,139,187 | ||||
14,892 | 23,237 | ||||
69,691,950 | 68,720,991 |
36,840,427 44,573,069
106,532,377 113,294,060
167,942,204 175,139,676
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
CHIEF FINANCIAL OFFICER | DIRECTOR | CHIEF EXECUTIVE |
Page05 1st Quarter Report I 2023
BESTWAY CEMENT LIMITED
CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2023
Note |
ASSETS |
Non-current assets |
30 September | 30 June |
2023 | 2023 |
--------------(Rupees'000)-------------- | |
(Un-audited) | (Audited) |
Property, plant and equipment | 7 |
Intangible assets and goodwill | |
Investment property | |
Long term investments | |
Long term deposits |
Current assets
Stores, spare parts and loose tools
Stock in trade
Trade debts
Advances
Deposits and prepayments
Short term Investments
Other receivables
Advance tax - net
Cash and bank balances
116,019,981
7,332,783
222,971
16,265,198
130,966
139,971,899
9,305,428
8,985,636
1,669,745
1,665,953
86,702
-
440,087
4,391,616
1,425,138
27,970,305
115,529,367
7,315,560
222,970
16,066,117
130,967
139,264,981
14,015,052
7,307,109
1,210,836
1,889,929
50,270
4,885,660
1,176,573
4,152,878
1,186,388
35,874,695
Total assets | 167,942,204 | 175,139,676 | |
CHIEF FINANCIAL OFFICER | DIRECTOR | CHIEF EXECUTIVE |
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BESTWAY CEMENT LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS UNAUDITED
FOR THE THREE MONTH PERIOD ENDED 30 SEPTEMBER 2023
Three month period ended
30 September | 30 September | |||
2023 | 2022 | |||
--------------(Rupees'000)-------------- | ||||
Gross turnover | 25,396,407 | |||
36,225,805 | ||||
Less: rebates and discounts | (833,937) | (714,268) | ||
Less: sales tax and excise duty | (9,531,385) | (6,076,080) | ||
Net turnover | 25,860,483 | 18,606,059 | ||
Cost of sales | (18,689,307) | (12,518,053) | ||
Gross prot | 7,171,176 | 6,088,006 | ||
Selling and distribution expenses | (287,087) | (194,605) | ||
Administrative expenses | (348,847) | (412,390) | ||
Other operating expenses | (221,761) | (319,942) | ||
Operating prot | 6,313,481 | 5,161,069 | ||
Other income - net | 222,132 | 38,720 | ||
Finance cost | (3,016,770) | (896,360) | ||
Share of prot of equity-accounted investees, net of tax | 1,140,694 | 497,926 | ||
Prot before tax | 4,659,537 | 4,801,355 | ||
Income tax | (1,584,209) | (1,492,269) | ||
Prot for the period | 3,075,328 | 3,309,086 | ||
Earnings per share - basic and diluted (Rupees) | 5.16 | 5.55 | ||
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
CHIEF FINANCIAL OFFICER | DIRECTOR | CHIEF EXECUTIVE |
Page07 1st Quarter Report I 2023
BESTWAY CEMENT LIMITED
CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME UNAUDITED
FOR THE THREE MONTH PERIOD ENDED 30 SEPTEMBER 2023
Three month period ended
30 September | 30 September |
2023 | 2022 |
--------------(Rupees'000)--------------
Prot for the period
Other comprehensive income (OCI):
Items that will not be reclassied to prot or loss
Company's share of equity-accounted investees' OCI
Re-measurement of dened benet liability
Related tax
Items that may be reclassied subsequently to prot or loss
Company's share of equity-accounted investees' OCI
Eect of translation of net investment in foreign branches and subsidiaries Income from Window Takaful Operations
Surplus / (decit) on revaluation of available for sale investment Related tax
Other comprehensive income - net of tax
Total comprehensive income for the period
3,075,328
22,136
(5,534)
16,602
(4,740)
28
71,109
(16,599)
49,798
66,400
3,141,728
3,309,086
-
-
-
550,558
-
(546,959)
103,922
107,521
107,521
3,416,607
The annexed notes 1 to 13 form an integral part of these condensed interim nancial statements.
CHIEF FINANCIAL OFFICER | DIRECTOR | CHIEF EXECUTIVE |
Page 08
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Bestway Cement Ltd. published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 05:38:14 UTC.