Cement companies see profit rise in Q1 in spite of pandemic

January 12, 2021 Business
Most listed cement makers witnessed higher profits found in the July-September quarter this past year thanks to a rise popular from the structure sector amid the ongoing coronavirus pandemic.

Among the seven listed cement makers, four noticed a rise in gains, one a fall, another a reduced amount of losses and the previous an increase in losses.

Government development tasks helped the cement manufacturers stay afloat in the first couple of days of the one fourth, when the personal sector was first yet to resume any structure, according to cement manufacturers.

Alternatively, the firms that digitalised their devices fared quite well.

"Our efforts on wellbeing, cost, and money have ensured that people stay focused through the crisis, while our fast improvement on digitalisation helped us succeed available on the market," explained Rajesh Kumar Surana, CEO and region representative of LafargeHolcim Bangladesh.

"We are very pleased with the resilience, agility, and superb teamwork of our personnel and the strong co-operation of our buyers and suppliers," he added.

Mohamamd Amirul Haque, managing director of Premier Cement, said cement manufacturers made a profit in the first one fourth of FY20-21 as revenue had increased compared to that in the last quarters.

The government production activities resumed completely swing in the last quarters of the year, which created a demand for cement, he said.

Regarding to him, Premier Cement features orders from 57 creation jobs, including mega assignments such as those of the Rooppur nuclear vitality plant and Karnaphuli tunnel.

Besides, the producers tried hard and put in their best initiatives to attain pre-pandemic levels in sales, Haque said.

So also amid the pandemic, where cement manufacturers incurred huge losses, it had been easy for them to quickly recover, he added.

Zahir Uddin Ahmed, managing director of Self-assurance Cement, said the company's profit margin slightly increased through the July-September quarter in 2020 as private and government construction work had resumed.

Besides, most of the construction gets results were stuck through the pandemic lockdown but resumed in September last year.

He likewise said the federal government incentive bundle helped the sector recover from the crisis.

The pandemic hit virtually all sectors of the united states and cement was no exception. The sector was worst hit in the May-June period, stated Abdullah Hujaifah, a stock market analyst and a higher net-worth investor.

In the July-September quarter, the companies built a rebound riding on the resumption of construction activities especially in the federal government sector, he said.

This is an excellent sign that construction related products' consumption is increasing because it indicates that the country's economy is bouncing back, Hujaifah added.
Source: Thedaily Star

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