Premier Cement sees 85% profit decline in Q1

Premier Cement Mills Limited posted an 85% drop in the July to September quarter of this year owing to an increase in the price of raw materials and intense competition in the cement industry.

But, according to an unaudited financial statement, its revenue grew 12% to Tk292.07 crore in the quarter despite the strict Covid-19 lockdown from 1 July to 10 August this year.

Amirul Hoque, managing director of Premier Cement Mills, said the supply chain of sales was hampered during the strict lockdown.

The price of raw materials went up internationally, but the price of cement did not increase at the same rate, he added.

In the July to September quarter this year, the company posted a net profit of Tk1.31 crore, which was Tk8.55 crore in the same period of the previous year.

During the period, its earnings per share were Tk0.12, which was Tk0.81 in the same period of 2020.

As of 30 September 2021, its net asset value per share was Tk77.95.

On 30 June 2021, the company recommended a 20% cash dividend for its shareholders.

As of 31 October 2021, the sponsors and directors jointly held 47.34% shares, institutions 18.81%, foreign investors 0.03% and the general public held 33.82% shares in the company.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk66.20 on Sunday.

Heidelberg Cement, one of the competitors of Premier Cement, incurred a loss of Tk10.78 crore in the same quarter of this year due to an increase in the price of raw materials and intense competition. Its revenue also grew 22% to Tk306.40 crore during the period.

On the other hand, LafargeHolcim posted a 43% profit growth to Tk93.66 crore in the July to September period. The profit mainly grew because of increased cement sales and new aggregate business.

Industry insiders said Lafarge produces raw materials in its plant which is why it can control its production cost.