Listed cement companies witnessed mixed trend in their profits in the first half in 2015, compared to the same period last year as businesses faced disruption due to political turmoil.
Among the seven listed cement-makers, four witnessed profits during the period, while three experienced losses, Dhaka Stock Exchange (DSE) data showed.
Aramit Cement profit increased by 45 per cent to Tk 15.25 million in first half of 2015 with earnings per share (EPS) of Tk 0.45 against Tk 10.50 million and Tk 0.31 respectively in the same period last year.
"Our company's profit increased as sales rose to 72,568 metric tonnes in first half of 2015 from 56,917 metric tonnes in the same period last year," Md Shah Alam, general manager of the Aramit Cement told the FE.
"We also went for innovative and aggressive sales strategy and our marketing department worked hard to achieve the higher growth," said Mr Alam.
Manufacturers said though listed cement companies saw mixed trend in their profits, overall demand of the key construction materials is increasing, following the beginning of Padma Bridge construction and rise in the number of construction projects (roads and other infrastructure) in rural and sub-urban areas.
Confidence Cement's profit dropped 3.42 per cent to Tk 152.09 million in first half of 2015 with EPS of Tk 3.38 against Tk 157.48 million and Tk 3.50 respectively in the corresponding period last year.
Heidelberg Cement's profit stood at Tk 846.13 million in the first half of 2015 with EPS 14.97 in first half in the current calendar year which was 817.07 million and Tk 14.46 respectively in the corresponding period.
Meghna Cement profit fell by 20 per cent to Tk 82.04 million with EPS Tk 3.65 in the first half of 2015 against Tk 102.47 million and Tk 4.55 per cent respectively in the same period last year.
Lafarge Surma Cement's profit stood at Tk 1,347.19 million with EPS Tk 1.16 in the first six months of this calendar year which was Tk 1,405.26 million and Tk 1.21 in the same period last year.
MI Cement reported Tk 500.73 million net profit after tax with EPS of Tk 3.37 in the nine months period (July14 to March 15) as against Tk 471.19 million and Tk 3.17 respectively for the same period of the previous year. The company's year ends in June.
Premier Cement's consolidated net profit after tax (excluding non controlling interest) from July14 to March15 was Tk 122.62 million with EPS of Tk 1.16 as against Tk 289.94 million and Tk 2.75 respectively for the same period of the previous year.
The prospect of the cement industry in a developing country like Bangladesh is bright, LankaBangla Securities, a stockbroker, in an analysis said.
The per capita cement consumption in Bangladesh is very low compared to the world average. "The per capita consumption in Bangladesh is only 85kg, while it is 174kg and 131kg in India and Pakistan respectively," it said.
"This indicates that our cement consumption will go up in line with our economic development," the analysis added.
The total cement production capacity in Bangladesh is around 25 million tonnes a year, while the demand is around 15 million tonnes, with a surplus of 10 million tonnes, according to IDLC Investments. bangladeshiiponews
Currently, Heidelberg, Holcim and Lafarge are the leaders among multinational cement makers while Shah Cement and Meghna Cement are the leading domestic manufacturers.
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