Islamabad: Bestway Cement Ltd (BWCL) anticipates stable profit margins in the fiscal year 2026 despite uncertainties surrounding export markets and the lingering impact of floods on domestic demand. In a corporate briefing held today, the cement manufacturer's leadership discussed the company’s performance and future plans, following a 73% year-on-year surge in earnings per share to Rs40 in FY25, driven by higher earnings from associated companies and lower financial costs.
The corporation achieved revenue of approximately Rs108 billion, a 4% yearly increase, despite a 2% dip in sales volume to 6.8 million tons. This was largely compensated by a 5% rise in local retention prices, which are predicted to hold steady in FY26. While the firm projects 5% domestic demand expansion in FY26, it acknowledges the unpredictable effect of recent floods. Export prospects remain guarded due to shifting market conditions in Afghanistan and ongoing border issues.
BWCL's renewable energy endeavors saw the addition of 6.8MW of solar power in FY25, bringing the total solar capacity to 112MW, in addition to 70MW from waste heat recovery. Having reached peak solar capacity, the company is now concentrating on optimizing existing resources through battery energy storage solutions. Renewables currently account for 55% of BWCL’s power consumption, with the balance procured from the national grid at Rs34/kWh.
The cement producer primarily utilizes locally sourced coal priced at Rs37,500 per ton, making up 60-70% of its fuel blend. The remaining portion consists of Afghan coal priced at Rs39,000 per ton. The organization revealed it had previously considered acquiring Attock Cement Pakistan Limited (ACPL) but abandoned the pursuit due to high valuations, expecting any future deals to be finalized at lower prices. The firm does not foresee any significant capital expenditures beyond a planned BMR in FY26 at a cost of Rs2 billion. Finally, the pending royalty issue for Punjab-based cement producers, fixed at 6% of ex-factory cement prices, awaits resolution in the Supreme Court under a stay order. BWCL, with three of its five factories situated in Punjab, is accruing royalty expenses of Rs1,200-1,500 per ton.