Premier Cement, in the second quarter of fiscal year 2024, experienced a remarkable surge in profits, soaring 28.38 times, attributed to a substantial 29 percent increase in revenue and a significant reduction in manufacturing costs.
During this period, the earnings per share reached Tk 2.09, a significant rise from Tk 0.07 in the corresponding period of the previous year. The announcement of these impressive earnings on Sunday led to a 5 percent increase in the stock price, reaching Tk 57.20 per share on the Dhaka Stock Exchange, despite the overall market experiencing a decline of 77 points to 6079.
According to Kazi Md. Shafiqur Rahman, the company secretary, the substantial increase in profit can be attributed to a robust boost in sales, coupled with a 4.8 percent increase in selling prices and an 18 percent reduction in raw material prices.
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However, despite this positive performance, there was a 9 percent increase in forex loss and a 3 percent rise in bank finance costs, limiting the overall profit potential.
In the October-December quarter of FY24, Premier Cement’s revenue surged to Tk 6.6 billion, accompanied by a reduction in production costs to 83 percent of the revenue, down from 90 percent in the same quarter the previous year. Conversely, selling and administrative expenses increased to 4.7 percent of sales revenue in Q2 FY24, compared to 3.09 percent in Q2 FY23.
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For the period of July-December 2023, Premier Cement reported a profit of Tk 277 million, a significant improvement from the loss of Tk 259 million in the corresponding period of the previous year.
Despite reporting net losses of Tk 842 million in FY23 and Tk 1.13 billion in FY22, Premier Cement has maintained its status as a regular dividend payer, distributing 10 percent cash dividends for both fiscal years.
