Confidence Cement halts ready-mix plant for dollar crisis, demand shrinking

Confidence Cement Limited — a subsidiary of the Chattogram-based Confidence Group — has decided to halt its ready mix concrete plant due to a disruption of raw material imports, stagnation in infrastructure development, and newly imposition of taxes.

Disruption of raw material imports, caused because of the crisis of foreign currency, and newly-imposed value added-tax (VAT) on ready mix business has led to price hikes, and shrinking demand significantly, according to a disclosure published on the Dhaka Stock Exchange (DSE) yesterday.

The disclosure reads, the capacity of its ready-mix concrete is 24 lakh CFT, and the plant is situated at South Patenga of Chattogram.

According to its annual reports, its cement plant contributed a major, and ready-mix plant a slight portion of Confidence Cement's total revenue.

It earned Tk19 crore in fiscal year 2022-23 from the ready mix plant, a 34% down from Tk28.86 crore in the previous fiscal year.

34% profit growth in Oct-Dec

Confidence Cement has reported a 34% growth in its net profit despite an 11.77% fall in revenue in the December quarter of FY24 over the same time a year ago, according to its consolidated un-audited financials for half year of the current fiscal year.

The earnings per share (EPS) stood at Tk3.50 in the December quarter of FY24, which was Tk2.61 in the same period of the previous fiscal year.

The company said through a disclosure, its profit increased due to declining price of raw materials and overcoming of foreign currency fluctuation loss.

In the first six months during the July-December period, its revenue declined by 5% to Tk184.89 crore, and net profit increased by 25% to Tk43.41 crore, which was Tk195.12 crore, and Tk34.63 crore respectively.