Crown Cement posts stellar profit growth amid macroeconomic woes
Defying several macroeconomic challenges, Crown Cement has posted a staggering 375% growth in profits in the second quarter of the ongoing fiscal year, compared to the same quarter of the previous fiscal.
In the October to December quarter of the 2022-23 fiscal year, the cement maker's net profit stood at Tk14.73 crore, which was Tk3.1 crore in the same quarter a year ago.
The company's revenue also grew by 31% to Tk622.83 crore, compared to the same quarter of FY22.
Though the dollar appreciation, costly raw materials, and energy crisis hurt Crown Cement's business in the first quarter of FY23, the company bounced back in the very next quarter.
In the July to September quarter of FY23, Crown Cement incurred a loss of Tk5.3 crore.
Seeking anonymity, a senior official at the company told The Business Standard, "In the first quarter, Crown Cement could not escape the economic adversities. High taxes, taka devaluation, and gas and power crises hit the company hard."
Because of the higher cost of raw materials, the company had to increase the prices of its products in the second quarter. Moreover, sales volume also went up in that quarter, compared to the previous fiscal, he said.
"Also, the company has done a good job managing its operating costs."
All these things paid off and Crown Cement's business soared in the October to December quarter, he added.
According to the company's financial statement, its sales volume increased by 12.17%, and price went up by 15.5% in Q2 of FY23.
In the July to December period of FY23, the company's total revenue stood at Tk1,130.7 crore, net profit at Tk9.42 crore, and earnings per share at Tk0.63.
Since August 2022, its shares have been stuck at floor price of Tk74.4 each at the Dhaka Stock Exchange.