Bestway Cement Limited is a public limited company incorporated on December 22, 1993 under the companies ordinance 1984. It was listed at Karachi Stock Exchange on April 9, 2001. According to its last Annual Report of June 30, 2003, Bestway (Holdings) Limited of UK is the ultimate parent company having 68.3% stake in the equity of the company.
At present the share in the company is trading at 26.31 per share carrying 163.1% premium over the par value of Rs 10. During the last one year market value of the Bestway Cement share appreciated by 60.9% to Rs 32.10 from Rs 20.05 per share.
The acquisition of 7.65% equity of UBL was successfully completed last year. As anticipated by the directors investment in the bank proved to be worthwhile as the bank has already started to show considerable improvement in profitability and balance sheet.
Another successful milestone was the completion of the work on the full conversion of cement plant to coal.
The company also set-up its own coal testing and analysis laboratory which has been equipped with most upto date equipment to ensure that only quality coal is used in the process to prevent an undesired operational and environmental effects.
The plant's annual capacity of production is at 990 thousand metric tonnes of clinker. During the half year ended December 31, 2004 of the financial year 2003-04 (HY 2003-04) the company's production of clinker was recorded at 503.84 thousand metric tonnes as against 393.34 thousand metric tonnes recorded in the previous HY 2002-03 showing 28.09% increase.
Cement Despatches for the 6-month period registered an increase of 96,069 tonnes to total Despatches 467,465 tonnes from 371,396 tonnes booked in the same period last year (SPLY).
Total Despatches include 99,914 tonnes of cement exported to Afghanistan. Capacity utilisation during the period was 90% as compared to an average of 77% for the industry.
Bestway Cement Limited retained its position as the leading cement exporter to Afghanistan.
Net Assets stood at Rs 1,187 million in the half year ended 31st December 2003, as compared to Rs 860 million in the corresponding period last year. Gross Profit margin improved significantly.
There was huge reduction in the financial charges. Pre-tax profit-went-up to Rs 341.51 million which is more than 3.3 times of Rs 102.97 million posted in the SPLY. Despatches to both export and domestic markets are likely to increase.
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Performance Statistics (Million Rupees)
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Balance Sheet ----As At----
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December 31 June 30 2003 2003
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Share Capital-Paid-up: 1,934.69 1,934.69
Reserves & Surplus: 482.35 245.95
Shareholders Equity: 2,417.04 2,180.64
L.T. Debts: 2,041.90 1,700.90
Deferred Liabilities: 119.64 19.99
Current Liabilities: 2,003.81 2,632.78
Tangible Fixed Assets: 3,258.95 3,306.07
L.T. Deposits, Prepayments
and Deferred Costs: 18.96 19.19
L.T. Investments: 1,864.95 1,864.95
Current Assets: 1,439.53 1,344.10
Total Assets: 6,582.39 6,534.31
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Profit & Loss A/c For the Half
Year Ended Dec 31 2003 2002
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Sales (Net): 1,186.84 860.00
Gross Profit: 446.32 258.35
Financial (Charges): (76.77) (138.61)
Profit Before Taxation: 341.51 102.97
Profit After Taxation: 236.40 75.63
Earnings/(Loss) Per Share (Rs): 1.22 0.39
Share Price (Rs) Dated 26-03-04: 32.10 -
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Financial Ratios
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Price/Earning Ratio: 26.31 -
Book Value of Share (Rs): 12.63 11.27
Debt/Equity Ratio: 46:54 44:56
Current Ratio: 0.71 0.51
Gross Profit Margin (%): 37.61 30.00
Net Profit Margin (%): 19.92 8.79
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COMPANY INFORMATION: Chairman: Sir Mohammad Anwar Pervez O.B.E, H.PK; Chief Executive: Zameer Mohammad Chaudhry; Company Secretary: Mohammad Akram; Head Office & Registered Office: 5th Floor, UBL Building, Jinnah Avenue Islamabad; Factory: Suraj Gali Road, Village Shadi, Hattar, Distt Haripur NWFP.
Cement
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