Bestway earns Rs 4.906bn profit during 2004-05

Bestway Cement, one of the largest cement producers and exporters of the country, has posted an after-tax profit of Rs4.906bn during the financial year ended on June 30, 2005 as compared to Rs3.801m last year.

The company recorded an increase of 16 per cent in cement sales to 1,205,588t during the fiscal year ended June 30, 2005 against 1,039,138t in 2004.

Owing to high demand to international markets for reconstruction work in the tsunami-hit areas and war-torn Afghanistan and Iraq, cement supply position remains tight all over the world.

Sales of cement by the industry rose to 16.4Mt against 13.6Mt last year, showing a staggering growth of 20 per cent. Both local demand and exports contributed substantially to the growth in sales volumes.

The domestic market grew by 18 percent while exports recorded a growth of 40 per cent. The overall capacity utilisation for the industry stood at 93 per cent for the year under review as against 81 per cent last year.

Clinker production rose to 1,115,694t in 2005 against 965,740t in 2004, showing an increase of 149,954t 16 per cent. Cement sales rose to 2,203,168t during the year under review from 1,205,588t against 1,039,138t in 2004, marking an increase of 16 per cent.

Capacity utilization of the company during the year under review was 98 percent which is one of the highest in the industry and also well above industry average of 93 per cent. The sales of cement by the increased from 1,039,138t to 1,205,588t for the year ended June 30, 2005, an increase of 16 per cent on last year.

The company retained more than eight per cent of the market share in the north zone and its position as one of the largest cement producers in the country. Bestway cement also remained the largest exporter of cement to Afghanistan.

The industry as a whole exported 1,565,170t during the period under review against 1,118,108t last year. Of this, 281,952t was sales by Bestway Cement alone which accounts for more than 18 per cent of the exports thus making the company one of the largest exporters of cement despite tough competition in the world market.