⚡ Flash Summary

Bestway Cement Limited (BWCL) reported its Q1 2025-26 results, showing a mixed performance. While revenue increased slightly, gross profit declined. The company maintained its position as the largest cement producer in Pakistan. BWCL declared an interim cash dividend of 100%, reflecting confidence in its financial position. Despite industry challenges and border issues with Afghanistan impacting exports, BWCL has maintained financial and operational resilience.

📌 Key Takeaways

• 1. Cement dispatches grew by 16.5%, slightly higher than the industry’s 16.3% increase. 📈
• 2. Gross turnover increased by 8% to Rs. 41.2 billion compared to Rs. 38.2 billion last year. 💰
• 3. Net turnover increased by 4% to Rs. 25.9 billion, driven by higher sales volumes. 📊
• 4. Gross profit decreased to Rs. 7.2 billion from Rs. 8.1 billion in the same quarter last year. 📉
• 5. Financial charges decreased to Rs. 1.4 billion from Rs. 2.5 billion due to lower interest rates. 📉
• 6. Profit before tax increased to Rs. 8.2 billion compared to Rs. 6.2 billion last year. 👍
• 7. Profit after tax increased to Rs. 5.5 billion from Rs. 4.1 billion. 🎉
• 8. Earnings per share (EPS) increased to Rs. 9.22 from Rs. 6.81. 🚀
• 9. Declared an interim cash dividend of 100%. 💸
• 10. Spent over Rs. 46 million on CSR initiatives. 💖
• 11. Domestic cement dispatches increased by 15.1% to 9.57 million tonnes. 🏘️
• 12. Export volumes grew by 20.9% to 2.59 million tonnes. 🚢
• 13. Finance cost decreased from Rs. 2,446.933 million to Rs. 1,405.085 million. 📉
• 14. Clinker production increased by 10.2% to 1,450,667 tonnes. 🏭
• 15. Cement production increased by 15.6% to 1,719,282 tonnes. 🧱

🎯 Investment Thesis

A HOLD rating is appropriate for BWCL. While the increased EPS and dividend are positive, the decline in gross profit and external risks create uncertainty. The company’s leading position in the cement industry and efforts towards green energy are encouraging, but current market conditions and financial pressures warrant caution. Further observation of operational performance and mitigation of risks is necessary before considering a BUY recommendation.