. Shivam Cement Limited, a cement manufacturing company, has posted a slight decline in its profit. According to the company’s unrevised financial statements for the fourth quarter of FY 2082÷83, the company has earned a net profit of Rs 78.44 crore in the review period.
The profit was 1.72 percent lower than the same period last year.
The company had posted a net profit of Rs 79.81 crore in the same quarter last year.
The company’s sales income has also declined. In the review period, the sales income decreased to Rs 6.92 billion from Rs 7.76 billion in the previous year. Sales have been affected due to the sluggish activity of the construction sector and the decrease in market demand.
With the decline in sales, the company’s gross profit has also shrunk.
The gross profit fell to Rs 1.59 billion from Rs 1.72 billion in the previous year. However, the company earned Rs 13.32 crore in other income, which helped the profit to some extent.
The company has been able to control operating expenses during the review period.
In the previous fiscal year, the expenditure was reduced to Rs 80.81 crore from Rs 93.16 crore. The decline in sales income due to cost cuts has not had much impact on profits. The company’s total current assets stood at Rs 3.78 billion and total current liabilities stood at Rs 2.30 billion. This indicates that the company’s ability to bear short-term liabilities is satisfactory.
The company’s earnings per share (EPS) stood at Rs 14.
03 during the review period. The company has net worth per share of Rs 188.76, total asset value per share of Rs 233.71 and liquidity ratio of 1.64 times.
Despite the decline in sales income and gross profit, the company has been able to maintain profitability with the help of expense control and other income.
The improvement in demand in the construction and infrastructure sector is expected to have a positive impact on the company’s financial performance in the coming days.
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