Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Shivam Cement has reported a sharp surge in profitability in the second quarter of the current fiscal year 2082/83, posting a 528.52 percent increase in net profit compared to the same period last year.
According to the company’s unaudited financial statement, net profit for the second quarter stood at Rs357.064 million (Rs35.70 crore), up from Rs56.81 million recorded in the corresponding quarter of the previous fiscal year.
Revenue and Income Performance
During the review period, the company recorded operating revenue of Rs3.09 billion, slightly lower than Rs3.10 billion posted in the same period last year, indicating stable core business performance despite broader industry pressures.
In the first six months of the fiscal year, Shivam Cement generated Rs108.23 million in other income, contributing to a total net profit of Rs654.486 million. In comparison, the company had earned Rs122.627 million in other income and Rs400.186 million in total profit during the same period last year.
The sharp growth in quarterly earnings suggests improved operational efficiency and better cost management, despite marginal fluctuations in revenue.
Cost Structure and Profitability
On the expenditure side, the company incurred Rs2.44 billion in cost of sales during the review period. Administrative expenses stood at Rs121.104 million, while selling and distribution expenses amounted to Rs227.858 million.
Profit before tax reached Rs406.102 million during the period, reflecting significant improvement in margins compared to the previous year.
Capital and Financial Indicators
Shivam Cement has a paid-up capital of Rs5.59 billion. As of the end of Poush (mid-January), the company’s reserve fund stood at Rs3.53 billion, indicating strong retained earnings and capital strength.
Earnings per share (EPS) as of Poush-end reached Rs12.77, while net worth per share stood at Rs180.38.
Industry Context
The robust profit growth comes at a time when Nepal’s cement industry is navigating fluctuating construction demand, infrastructure spending patterns, and energy costs. The company’s improved earnings performance may signal stabilization in the domestic construction sector and enhanced operational leverage.
Investors are likely to closely monitor whether the current momentum sustains in the remaining quarters of the fiscal year amid ongoing macroeconomic adjustments and capital expenditure trends.
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