Summary

• Page properties (1 modified, 0 added, 0 removed)

Details

Page properties

Content

...	...	@@ -21,7 +21,7 @@
21	21
22	22	The accounting period of Premier Cement Mills Limited starts on July 1 and ends on 30^^th^^ June. In 2020-21, the revenue of the company has increased to BDT 12,810 million from BDT 10,461 million in 2019-20 which is a growth of 22.46%. It has led to a 28.04% increase in gross profit from BDT 1,503 million in 2019-20 to BDT 1,924 million. The company has reported BDT 653 million of net profit in 2020-21 which was BDT 271 million in 2020. In 2019-20, the net income of the company has declined 56% and increased 141% in 2020-21. Due to the emergence of covid-19 pandemic, the government of Bangladesh imposed lockdown from 26 March 2020 to 30 May 2020 in order to stop the spread of the virus which directly affected the business performance. The company was able to use only 18.96 percent production capacity in the fourth quarter in the previous fiscal year. It was the key reason of the severe drop in the net profit of the company in 2019-20.
23	23
24		-Though the EBIT of the company has increased by 35% that was mainly contributed by high gross profit in the year of 2020-21, one of its most contributing head in the income statement named other income has experienced large drop. The section includes income from interest earned from associate, given loans, leasing and so on, that has seen a severe drop of 96.9% in 2020-21. The reasons behind are the decrease of per bag cement carrying rate income and the forgone interest income charged to the borrower, Rupsha Edible Oil Refinery Ltd during the year. Administrative expenses increased by BDT 9.11 million in the financial year 2020-21. Mainly due to the increase of renewal, legal & professional fee is BDT 0.85 million, and BIWTA expenses increased by BDT 2.93 million. But still the high gross profit has made sure the EBIT growth to be positive.
	24	+Though the EBIT of the company has increased by 35% that was mainly contributed by high gross profit in the year of 2020-21, one of its most contributing head in the income statement named other income has experienced large drop. The section includes income from interest earned from associate, given loans, leasing and so on, that has seen a severe drop of 96.9% in 2020-21. The reasons behind are the decrease of per bag cement carrying rate income and the forgone interest income charged to the borrower, Rupsha Edible Oil Refinery Ltd during the year. Administrative expenses increased by BDT 9.11 million in the financial year 2020-21. Mainly due to the increase of renewal, legal & professional fee is BDT 0.85 million, and BIWTA expenses increased by BDT 2.93 million. But still the high gross profit has made sure the EBIT growth to be positive.
25	25
26	26	The only subsidiary of PCML, Premier Power Generation Limited (PPGL), has generated net profit of BDT 37 million in 2020-21 and has total assets of BDT 480 million. More than 69% of the total assets is covered by current assets of PPGL. The property, plant and equipment was revalued at BDT 195 million which is BDT 26 million higher than before. However, the revenue has decreased by 9.5% in 2020-21. It has entered into a contract of lease liability of 1.4 million in 2020-21 which has increased its finance cost in the same period. The debt ratio of PPGL is only 1.55%.
27	27
...	...	@@ -80,10 +80,11 @@
80	80
81	81	=== Growth Drivers ===
82	82
83		-The key growth drivers that boost the demand of cement in Bangladesh is urbanisation. Around 39% population of the country live in urban area. According to Statista, the urbanisation growth in Bangladesh was 38.18% in 2020.
	83	+The key growth drivers that boost the demand of cement in Bangladesh is urbanisation. Around 39% population of the country live in urban area. According to Statista, the urbanisation growth in Bangladesh was 38.18% in 2020.{{footnote}}https://www.statista.com/statistics/455782/urbanization-in-bangladesh/{{/footnote}} The capital city has to accommodate more than 600,000 people each year which means the demand is around 120,000 household needs against the supply of only 25,000 units. Also, the population growth rate is another growth driver for the country. Another important driver of rising cement consumption in the nation is the real estate industry. However, the industry fell short of expectations because to increasing loan rates, higher land prices, and higher registration and associated fees.
84	84
85	85
86	86
87	87
88	88
	89	+
89	89	{{putFootnotes/}}