Confidence Cement's profit fell by 20% in Oct-Dec
Confidence Cement Limited, a concern of the Chattagram-based Confidence Group, suffered a 20% drop in profit from October to December of the current fiscal year due to soaring prices of raw materials in the international market and losses caused by fluctuations in foreign currency rates.
According to a disclosure published on the Dhaka Stock Exchange website, its consolidated earning per share (EPS) declined to Tk2.74 in the second quarter, which was Tk3.42 in October-December 2021.
Earlier in the first quarter from the July-September, despite a 15.67% growth in its consolidated revenue, it saw a 27% profit drop for raw materials price hike and a strong dollar.
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According to disclosure, in the first half of 2022 (July-December), the company's consolidated EPS fell 23% to Tk4.43, which was Tk5.74 in July-December 2021.
Established in 1991, Confidence Cement Limited went into commercial operation in 1994. It was listed on both stock exchanges in 1995.
At present, the company has an annual production capacity of 12 lakh tonnes.
In fiscal 2021-22, the company witnessed a drastic fall in profit owing to a drop in sales, devaluation of the taka against the dollar, a rise in raw material prices, as well as losses incurred by its associate companies namely Confidence Batteries Limited.
In FY22, its EPS declined to Tk1.43 from Tk15.85 in the previous fiscal year.
As profit declined, the company recommended a 5% cash, and 5% stock dividend for its shareholders.
Earlier in FY21, it had paid a 25% cash dividend to its shareholders.
On Sunday (19 February), Confidence Cement's share price stood at Tk89 each on the DSE trading floor at 10.39am.
