Confidence Cement’s quarterly profit rises 39%

Confidence Cement posted a higher quarterly profit to close out 2020 on the back of a vibrant construction sector despite the novel coronavirus pandemic.

During the October-December period, its consolidated net profit stood at Tk193 crore, which is a 39% increase compared to the same period of the previous fiscal year.

In the first six months of the current fiscal year, the company's consolidated net profit rose by 19% to Tk304 crore.

Its consolidated earnings per share stood at Tk8.02, which was Tk5.12 in the same period of the previous year.

Confidence Cement has decided to sell its entire holdings, in its subsidiary Zodiac Power Chittagong Ltd, to Confidence Power Holdings Ltd, also an associate company of the cement manufacturer.

For 2.04 crore shares of Zodiac Power, Confidence Power will have to pay Tk43.45 crore to its mother company.

Confidence Cement will seek approval from shareholders in this regard at the next general meeting.

Sources at the company said cement sales increased during the last quarter because of vibrant construction activity.

Confidence Cement, which was listed on the stock exchanges in 1995, has recommended a 20% dividend – 15% cash and 5% stock – for its shareholders.

As of December last year, the sponsor-directors held 30.03%, general shareholders 50.73% and institutional investors 19.24% of the company's shares.

The company's share price closed at Tk119.80 each at the DSE on Thursday.