Cement Industry of Bangladesh

Cement is a major ingredient for the construction industry. The process of producing
cement is highly energy intensive. The process requires procuring limestone, shell, and
clay. Afterwards, the raw materials are crushed and heated at a temperature in excess of
1,000 degree Celsius to produce clinker. For producing final grade of cement, clinker is
mixed with gypsum and grounded to fine powder. The cost of the whole process amounts
to 29% energy, 27% raw materials, 32% labor, and 12% depreciation. The intensity of uses
of cement depends on the rate of urbanization and the amount of development projects
undertaken.

Till 1990 about 95% of The development of cement industry in Bangladesh dates back to the early-fifties. Till
the country's demand 1990 about 95% of the country's demand for cement had been met through import. Some
for cement had been enthusiastic entrepreneurs ventured into setting up cement plants during 1997 to 2000
met through import which opened a new era in this sector. Prior to inception, Bangladesh used to import
cement from global market. As new players entered into the market with no participants,
they tapped into the already existing huge demand for cement. The dependency on
import lowered in the following years. Currently local producers and multinational
companies have engaged in cement production to fulfill the local demand.

Product nature: There are several types of common cement which can be grouped into
Only 65-80% of clinker five general categories: Gray Ordinary Portland Cement, White Portland Cement, Masonry
is required to produce or Mortar, Oil-well Cement and Blended Cement and three strength classes: ordinary, high
PCC while 95% of and very high. At present, the ratio of production of PCC and OPC is around 95:5. PCC
clinker is required to gives equal strength and durability like OPC. Only 65-80% of clinker is required to produce
produce OPC PCC while 95% of clinker is required to produce OPC. So, worldwide PCC has become
popular which requires less clinker.

Global Scenario: Fuelled by the extensive growth of Chinese cement market and cement
Chinese market has markets of developing countries, the global cement market has experienced a massive
continued to be the growth. According to IMARC group, the global market rose to volume of around 5.0 billion
biggest driver of growth tons in 2016 which was around 3.7 billion tons in the year 2012. Chinese market has
continued to be the biggest driver of growth alongside countries from North America as
USA has continued to recover from recessionary conditions that began in 2007. In the
upcoming years India is expected to garner the fastest growth in terms of demand for
cement generating 8.0% growth rate per year in the next five years.

Average per capita Regional comparison: Although the Per Capita Cement Consumption in Kg
cement consumption in growth in the demand of cement has
the world is 500 kg while been increasing in Bangladesh, it is far
that of Bangladesh is only below than that of many developing
120 kg. countries. So, there is a broader scope of
growth for cement sector of Bangladesh.
The ongoing construction projects are
contributing towards the growing
demand of cement but delaying in the Source: The Daily Star (December 18, 2016)
implementation of projects are curtailing the full potential and speed of the consumption
Handsome liquidity growth of cement. Bangladesh is one of the lowest consumers of cement products in the
position world. Average per capita cement consumption in the world is 500 kg while that of
Bangladesh is only 120 kg. However, per capita cement consumption in Bangladesh
witnessed lucrative growth over the last few years.

1 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Production Capacity and Utilization: Currently the industry is experiencing overcapacity
of cement production. In a recently surveyed report by Cement Manufacturer’s
Association, it has been found that
Production Capacity and Utilization
there is production capacity of 40
million tons, whereas actual
production is hovering around 32
million tons. The machineries and
equipment and manufacturing
On an average the
sites are not being utilized fully by
utilization rate of cement
the cement manufacturing
manufacturing companies is
companies. On an average the
currently around 75.0-80.0%
utilization rate of cement
manufacturing companies is
currently around 75.0-80.0%. There
are currently 34 companies who are
operating as cement producer.
Source: Industry Players' Estimate and EBLSL Research and The Daily Star
Environment of overcapacity in the (December 18, 2016)
cement industry gives an inkling that
there is little scope for newcomers to have minimum amount of market share in the
industry.

The installed capacity of the local manufacturers far outstrips domestic demand. Though
Handsome liquidity position there is over-capacity in the sector, the market demand is almost equal to the effective
capacity during peak season. Present installed capacity of the industry is 40 million MT.
However, due to interruption in power supply and other constraints, effective capacity is
much lower. The
hidden capacity is Capacity and Utilization of Some Major Cement Manufacturing Companies
there but it’s not
actually hidden as Production Production Capacity Utilization
Capacity (mn MT) (mn MT) Ratio
there are around
12% wastage. HEIDELBCEM 2.4 1.7 71%
Cement LAFSURCEML-Cement 1.5 1.5 97%
LAFSURCEML-Clinker 1.4 1.4 99%
manufactures
MICEMENT 1.7 1.5 87%
calls it waste
PREMIERCEM 2.8 1.5 55%
because of MEGHNACEM 1.0 1.2 120%
production error. CONFIDCEM 0.8 0.5 72%
ARAMITCEM 0.2 0.1 48%
The cement Source: Company Annual report, DSE & EBLSL Research
production is
mostly demand driven as it directly depends on demand. Presently, the actual production
of all plants in Bangladesh is roughly 32 million MT which means that the sector is now
utilizing roughly 80% of the total industry capacity. At present the demand side of the
market is mainly dominated by Government’s infrastructure development projects,
industrial constructions and real estate companies, and independent home builders.

Export: Export revenue from Cement has dropped significantly in recent period. In the
FY2015-16, the export of cement from Bangladesh amounted to USD 1.71 million (BDT
133.6 million) which was USD 3.94 million (BDT 307.8 million) in FY 2014-15, representing
43.4% plunge in export sales (Source: The Daily Prothom-alo). Bangladesh started
exporting cement from 2003. M.I. Cement Factory Limited was the pioneer in cement
export from Bangladesh. Cement export data presents that Crown Cement ( a brand of
M.I. Cement) accounts for 37% of the total export volume in cement (Source: MI Cement
Annual Report). Presently cement is being exported to India, Myanmar, Nepal, Maldives

2 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 In the FY2015-16, the and Sri Lanka. Bangladesh exports 0.5 to 0.6 million MT of cement a year to the seven-
export of cement from sister market in India. However, the export of cement has declined in recent period as
Bangladesh amounted to Indian manufactures are now offering cement at lower rates than Bangladeshi companies
USD 1.71 million (BDT due to their anti-dumping tax benefits. Furthermore, Bangladesh's exports to Tripura
133.6 million) which was through Akhaura land port is likely to drop further as the government has granted transit
USD 3.94 million (BDT facility to India and the recent improvements in infrastructure on the Indian side. Availing
307.8 million) in FY 2014- transit facility, India is now being able to shift cement at lower costs to the “Seven Sister
15, representing 43.4% States” of north-eastern India through Bangladesh. The shipment cost is much lower
compared to importing from Bangladesh. Myanmar is showing another prospective
plunge in export sales
market for export of cement to boost up and develop the cement export.

Raw-materials: For the production of cement, two Gypsum Fly-ash

types of materials are necessary: one rich in calcium or 4% 5%
Major raw-materials for
calcareous materials such as limestone, chalk, etc. and
cement production are
another that is rich in silica or argillaceous materials Bags
limestone (for clinker), 9%
such as clay, which are extracted from quarry.
chalk, clay, fly ash, slag
Limestone is the primary raw-materials for producing Slag
and gypsum cement clinker. There are also various other raw 8%

materials used for cement manufacturing (i.e. fly

ash, slag, gypsum, mill scale and bauxite). Clinker &
Lime stone
Bangladesh is import dependent and it is one of the 74%
largest importers of clinkers globally. Of the 32 cement
producers that are currently in operation, only two have
clinker production facility at their own plants. One is Source: EBLSL Research
Chhatak Cement Factory Ltd, a government owned company, with limited production
capacity and another is Lafarge Surma Cement Ltd.

In the last two fiscal The major cement manufacturers are Clinker Import of Bangladesh (C&F) (Million
years (2014-15 and importing the required raw materials US$)
2015-16) the payment including clinker, gypsum, fly ash and
for clinker import in iron slag from abroad and using grinding 800 60.0%
40.0%
terms of USD has
technology to produce cement. At 600
20.0%
400
present, several local cement 0.0%
dropped due to the price 200 -20.0%
manufacturers procure clinker from
fall of clinker in the 0 -40.0%
Lafarge while most of the manufacturers
2008-09
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
global market 2015-16
import clinker from China, Hong Kong,
India, Indonesia, Japan, Korea, Malaysia,
Clinker Import (C&F) (Million US$)
Philippines, Singapore, Thailand and
Handsome liquidity Import Growth
Vietnam. Lafarge Surma Cement Ltd
position
produces approximately 10% of total Source: Bangladesh Bank Data
Most of the
clinker required for Bangladesh. Some manufacturers also use local limestone collected
manufacturers import
from Sylhet. Majority portion of imported fly ash is sourced from India; slag is imported
clinker from China,
from China, India, Japan and Singapore while Gypsum is sourced from China, India,
Hong Kong, India,
Indonesia and Japan. The prime raw material of cement, clinker, is currently 80.0%
Indonesia, Japan, Korea,
imported. Bangladesh has a scarcity of mineral resources, such as limestone, and hence,
Malaysia, Philippines,
is not capable enough to meet the demand for clinker. Clinker import has been raised
Singapore, Thailand and quite significantly for Bangladesh.
Vietnam
Handsome liquidity
Meanwhile in the last two fiscal years (2014-15 and 2015-16) the payment for clinker
position
import in terms of USD has dropped due to the price fall of clinker in the global market.
Bangladesh imports an estimated 10 million MT to 15 million MT of Clinker and Limestone

3 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 In the year 2016 the
clinker price per MT has
fallen down by 14.1%
compared to previous
year
Source: Industry Players' Estimates and EBLSL Research (Bashundhara Group represents combined capacity of Meghna Cement and Bashundhara Cement)
4 Disclaimer of EBLSL and the Analysts is located at the end of this report.
from different South-East Asian countries annually. Bangladesh mostly relied on imported
clinker in FY 2015 and also remained as the largest importer of clinker.
Global clinker price downward trend Clinker Price/MT
has enabled the cement manufacturing
companies tackle their cost of goods
sold quite satisfactorily. Clinker Price
per MT stood at on an average BDT
5,383 in the year 2012 which has fallen
down to BDT 4,249 in the year 2016. In
the year 2016 the clinker price per MT
has fallen down by 14.1% compared to
previous year. However, the downward
trend in the global clinker price has
become a threat for Lafarge-Holcim
since Lafarge Surma supplies clinker to
other cement manufacturing Source: EBLSL Research
companies. Except Lafarge Surma, other cement manufacturing companies can capitalize
the advantage to cushion the price fall of cement.
Major players and competition: Currently, only 32 factories are in operation, including four
multinational companies. At present, 81% of the total market share is held by top ten
manufacturers. Among the top 10 cement market players in Bangladesh, 8 are local and
2 are multinational.
Market Share as of 2016
Multinational cement companies are facing intensive competition with local companies
which are grabbing the top slot of the industry by operating in economy of scale and with
deft marketing strategy. MNCs now hold only 25-30% of the total market share. As a result
of failure to penetrate market, two of the global cement group, UAE based Emirates
Cement and Mexico-based cement manufacturer Cemex has recently divested their
Bangladesh operations. However, completion of acquisition of Holcim by Lafarge Surma
will reshape the industry dominance in Bangladesh as both the companies already
operates own business here. After the completion of acquisition, Lafarge-Holcim has the
2nd place in terms of market share.
7 September 2017
Cement Company Promoter Products Brand Installed Capacity Post
(Million Expansion
MT/Year) Capacity

Shah Cement Abul Khair Group OPC & PCC Shah Cement 5.20 -
Bashundhara Group Bashundhara Group OPC & PCC Bashundhara Cement & King 5.05 7.05
Brand Cement
Lafarge Holcim Cement LafargeHolcim Clinker, OPC & Powercrete+, Supercrete and Cement: 3.40 -
PCC Holcim Clinker: 1.15

Aman Cement Aman Group OPC Amancem 3.75

Unique Cement (Fresh) Meghna Group OPC, PCC & Fresh Cement 3.60 -
Portland
Pozzolana
Cement
Seven Rings Cement Shun Shing Group OPC & PCC Seven Rings Cement 3.50 4.40
International Ltd.
Premier Cement Premier Cement OPC & PCC Premier Cement 2.80 5.80
Heidelberg Cement HC Netherlands OPC & PCC Scan Cement & Ruby Cement 2.38 -
Holding B.V (39.8%),
HC Asia Holding
GmbH, Germany
(20.86%)
Crown Cement M.I. Cement Mills Ltd. OPC & PCC Crown Cement 1.74 3.50
Madina (Tiger) Cement Madina Cement OPC & PCC Tiger Cement 1.69 -
Industries Ltd.
Akij Cement Akij Group Fly-Ash Free Akij Cement 1.20 -
Royal Cement Kabir Steel Group & Cement
OPC & PCC Royal Cement 1.00 -
BSA Group
Anwar Cement Anwar Group OPC, and Anwar Cement 1.00 -
Portland
Pozzolana
Confidence Cement Confidence Group Cement
OPC & PCC Confidence Cement 0.75 1.50

Eastern Cement Doreen Group OPC & PCC Seven Horse Cement and 0.45 -
Seven Horse Supreme
Mongla Cement Sena Kalyan Sangstha PCC Elephant Brand Cement 0.39 -
S. Alam Cement S.Alam Group PCC Minar Brand 0.36 -
Aramit Cement Aramit Group PCC Camel 0.20 0.70
Mir Cement Mir Group OPC & PCC Mir Cement 0.20 -
Mostafa-Hakim Cement Mostafa-Hakim Family OPC Taj Mahal Cement 0.17 -
Source: EBLSL Research **OPC= Ordinary Portland Cement; PCC= Portland composite Cement

Market segmentation: Cement consumer of the country can be

segmented by location, purchasing approaches,
behavior, seasonal variation, volume, brand
preferences and frequency personal characteristics Individual
Home
etc. Cement consumers’ characteristics can also be Govt. Builder
segmented into price sensitive customers, quality Development 25%
Projects
conscious customers and quality and price 45%
tolerance customers.
Real Estate
In broader aspects the customers of cement in Developer &
Bangladesh can be grouped into two large segments- Contractors
30%
private and public. Previously individual homebuilders
contributed the highest towards demand for cement but
Government’s recent mega projects have helped public Source: Annual Reports of Listed Companies
sector contributes the highest towards demand for cement.
Among the private sector the scattered domestic individual homemaker and commercial

5 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 real estate developers consumes 25% and 30% of the total cement production while the
public sector consumes almost 45% of the consumers segments.

Geographical breakdown of consumption: In Bangladesh, business operation of the most

Three-fourth of the of the cement manufacturers is geographically concentrated. Cement consumption also
cement produced in the varies region wise. Out of total production, three-fourth of the cement produced in the
country is consumed in country is consumed in Dhaka and Chittagong division and the rest in other divisions. This
Dhaka and Chittagong made cement a regional commodity where lower distribution cost make it remunerative
division and the rest in to its producers. However, a major change is now Division-wise Demand
other divisions apparent in the rural economy of Bangladesh that
resulted into increased consumption of cement in those
areas. Especially the demand for cement is growing in
the northern, western and southern part of Bangladesh.
The regional deviation is mainly due to the
nonexistence of balance of demand and supply; Maymenshingh

difference of per capita income of the population and

level of industrial developments of the regions. Another
important feature of cement industry is that it highly
depends on plant location. High transportation cost
makes it infeasible for the manufacturers to supply
cement to distant areas from the plant location. Source: Annual Reports of Listed Companies

To gain optimum control in specific locality, cement manufacturers establish production

facilities there. Such initiatives are not only driven by the intention of reducing high
transportation cost but also required by the product nature itself as quality of cement
starts to diminish after production. For example, LafargeHolcim Cement leads the Sylhet
market as they have a plant there.

Pricing: There exists high price war in the cement industry. To avail extra market share,
pricing is a key in the crowded market with excess capacity. Several national level
producers practice fluctuating pricing policy between regions to achieve competitive
benefits. Currently, the standard price of one bag (50 kg) cement produced by the
multinational & local companies range within BDT 370 to BDT410 per bag. The cement
price in Bangladesh has been witnessing down trend since last three years and dropped
by roughly 5-6% per bag compared to the prices in 2016.
Reduction in raw material price along with stiff competition in the market has forced the
cement manufacturers to reduce the cement price. The raw-materials for cement
witnessed a downward price trend over the last four years. Among the key raw-materials,
Clinker witnessed 14.1% price fall in 2016 from that of the 2015.
Handsome liquidity
position Retail Price of Cement (50 kg bag)

Source: EBLSL Research

6 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Seasonal factors have high influence on fluctuation in retail price and following the freight
cost, cement price are not same throughout the country at a single point of time though
the price of cement produced by different player s in the industry are very close to one
another.

The demand for cement
sharply declines during
the monsoons due to
slowdown in construction
activities
Seasonality: Cement sector in Bangladesh experiences high seasonality. Peak season is
considered during the winter season (November to April) while demand for cement goes
slow during the monsoon (June to October) period. The demand for cement sharply
declines during the monsoons due to slowdown in construction activities. According to
the industry personnel, 60% of the total yearly sales are generated in the first half of the
year and rest 40% sales are generated in the second half of the year due to seasonality.
Though the yearly capacity of cement sector was saturated with overcapacity, market
demand gets matched or cross the effective capacity during the peak season.
Furthermore, the cement industry, like Peak Season November to April/May
most other capital intensive industries, is June to October
cyclical in nature with respect to supply. Dull/off season (depends on monsoons)
Manufacturers give incentive,
commission and foreign trip campaign to the employed executives and
dealers/distributors/traders over the year while taking promotional activities in off pick
season.

Factors driving the demand for Cement in Bangladesh

Increasing growth of construction sector and increasing urbanization have driven the demand for
cement in Bangladesh
Owing to the urbanization, improved living standard and increasing purchasing power,
the construction sector of Bangladesh is passing a shining period. The demand for cement
is closely linked with the growth of construction sector as when the construction sector
found strong, then demand of cement increased. Construction and real estate activities
are the two major drivers of cement consumption.

Construction Sector of Bangladesh

2011-12 2012-13 2013-14 2014-15 2015-16
Size of Construction Sector (BDT bn) 447 483 522 567 617
Share of GDP at Constant Prices 6.80% 6.90% 7.00% 7.20% 7.30%
Growth Rate of size of Construction Sector 8.40% 8.00% 8.10% 8.60% 8.90%
Source: Bangladesh Bureau of Statistics

Handsome liquidity
position
Real Estate Sector of Bangladesh
2011-12 2012-13 2013-14 2014-15 2015-16
Size of real estate sector (BDT bn) 476 495 516 539 563
Share of GDP at Constant Prices 7.20% 7.10% 7.00% 6.80% 6.60%
Growth Rate of Real Estate Sector 3.90% 4.00% 4.30% 4.40% 4.50%
Source: Bangladesh Bureau of Statistics

7 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Construction and real The growth of construction sector has been greater than GDP growth rate. Hence,
estate activities are the construction sector’s share of GDP has been growing gradually over the years. On the
two major drivers of other hand growth rate of real estate sector has been lower than GDP growth rate and
cement consumption correspondingly real estate sector’s share of GDP has been declining over the years. The
size of construction sector has been mainly accelerated by many Government
development projects that
have been undertaken URBAN POPULATION (% OF TOTAL)
recently.
35.0%
The country’s increasing 32.8%
33.5%
34.3%
32.0%
urbanization has 29.7%
30.5%
31.2%
29.0%
stimulated growth for the 28.2%

building materials and has

generated considerable
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
needs for cement. Urban
Source: World Bank Data
population has grown at a
greater speed over the years. By the end of year 2016 the urban population stands at
35.0% of total population and the number will get bigger in the upcoming years.

InHandsome
the recentliquidity
budget Mega Projects are contributing towards increasing demand for cement
(2017-18) Government
position
has allocated BDT 306 Project Completion Date Cost
Padma Bridge Year 2018 USD 3.7 billion
billion which is one-fifth of
Rooppur Nuclear Power Year 2020 USD 12.7 billion
total ADP for six mega
Rampal Power Project Year 2018 USD 1.5 billion
projects
Matarbari Coal Power Year 2022 USD 4.6 billion
Metro Rail Year 2019 USD 2.7 billion
Deep Sea Port Year 2023 USD 15.0 billion

Mega projects contribute heavily Allocation to Transportation and 10.95%

towards the increasing demand for Communication (BDT, bn)
10.14% 372.89
11. 0%

cement and there are some big projects

380

9.32% 10. 0%

that are ongoing and expected to 330

268.24
initiate soon to uplift the demand for
9.0 %

280

7.58%
cement in Bangladesh. In the recent 230
7.18%
190.57
8.0 %

budget (2017-18) Government has 6.19%

180
7.0 %

142.65
allocated BDT 306 billion which is one- 124.97
6.0 %

94.38
130

Handsome liquidity fifth of total ADP for six mega projects.

80 5.0 %

position Budget allocation to transportation and
communication has undergone a
massive growth over the years and
hence, Government development
2011-12 2012-13 2013-14 2014-15 2015-16 ® 2016-17
Transportation and Communication
Percentage of Budget
Source: Bangladesh Budget

projects’ contribution towards demand for cement has turned out to be the highest in
the recent year overtaking individual homebuilders’ contribution.

Industry Concerns
Although a booming sector with great potentiality, cement industry has also some risk
factors. Firstly, it is threatened by over supply resulting from huge capacity expansion by
almost all leading industry players. Roughly, 40% capacity is likely to be added to currently
capacity by the end of the next year. However, since it takes 2-2.5 years to build a cement
plant, it is likely that before completion, demand could decrease or stagnate, or the
capacity additions could exceed demand. If the demand does not go up in line with the
capacity enhancement, there will remain a huge surplus capacity of cement production

8 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
If the demand does not go in the coming years. This can lead to a fall in cement prices, and the industry could face a
up in line with the downturn, leading to reducing operating rates or shutting down capacities.
capacity enhancement, Secondly, almost all raw materials of cement are imported, if the supplies of the same are
there will remain a huge cut-off due to adverse political cause or other disturbance, the industry may face serious
surplus capacity of challenges, even the risk of shut down. Besides, following the high contribution of raw
cement production in the materials in the cost structure, any movement in the price of clinker and other raw
coming year materials will eventually affect the profitability and performance of the cement
manufacturer. Finally, exports also predict some problems in the future. India was reliant
on imports from Bangladesh for a number of products including cement, especially for its
seven sister regions.

By the end of 2016-17 the
total inward remittance
stood at USD 12,769 mn
which was USD 14,931 mn
in the previous FY.
Handsome liquidity
position
Fall in inward remittance has posed a threat to the cement industry as individual
homebuilders’ ability to spend on construction has declined correspondingly
With fall in remittance from the gulf
region, concern has been raised. Demand Total Inward Remittance
for cement may see a downturn due to
low remittance which is a major source of
income for individual homebuilders.
Inward remittance has fallen down
sharply in the FY 2016-17. By the end of
2016-17 the total inward remittance
stood at USD 12,769 mn which was USD
14,931 mn in the previous FY.
The fall in the inward remittance poses a
threat for the cement industry. As
individual home builders is one of the Source: Bangladesh Bank
major contributors to cement demand,
fall in inward remittance may curtail the overall demand for cement. The demand for
cement in the rural areas will also fall in effect as previously demand for cement was
fuelled by rural individual homebuilders. Unless the inflow of remittance regains its bright
days, the cement industry may get hurt badly.

National Election to be held by the end of 2018 or in the beginning of 2019 is a critical
time for cement industry
Construction The year 2018-19 may remain critical as national election is to be held by the end of 2018
sector is
Handsome highly
liquidity or in the beginning of 2019. As construction sector is highly sensitive to political situation,
sensitive to
position overall dynamic of cement industry may get affected by the uncertainty that may loom
political situation over the national election period. The uncertainty over political condition during election
period is a major concern for the cement industry.

Industry outlook
The outlook for cement in The future potential of the country’s cement industry is strong. According to the industry
2017-2020 remains specialists, the outlook for cement in 2017-2021 remains promising with an expected
promising with an CAGR of 15% mainly driven by the residential sector (Annual reports of listed companies).
expected CAGR of 15% Growing housing up-gradation among individual homemakers is driving the major
mainly driven by the contribution in cement consumption. Industrial construction taking place in economic
residential
Handsome sector
liquidity zones are also accelearting the growth. At the same time, major infrastructural projects
position
are also in the pipeline to support economic growth agenda. Due to rapid pace of
urbanization, industrialization, large-scale infrastructural and Governmental
development projects as well as construction of various commercial and residential
buildings, demand for cement has markedly increased and the growth is expected to be
continued in future. The trend of demand for cement is expected to continue till FY 2035.

9 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Overview of Listed Companies under Cement Sector

Capital market performance

Seven cement
manufacturing companies
are listed in the capital
market along with two
MNCs
Currently there are seven listed cement manufacturing companies in Bangladesh capital
market which are, Aramit Cement Ltd. (ARAMITCEM), Confidence Cement Ltd.
(CONFIDCEM), Heidelberg Cement Bangladesh Ltd. (HEIDELBCEM), Lafarge Surma
Cement Ltd. (LAFSURCEML), Meghna Cement Mills Ltd. (MEGHNACEM), M.I. Cement
Factory Ltd. (MICEMENT) and Premier Cement Mills Ltd. (PREMIERCEM). Out of them two
are multinational and others are local manufacturers.
Among the listed cement manufacturing companies, only LafargeHolcim is the fully
integrated cement manufacturing company in Bangladesh and rest of all are basically
grinders. Heidelberg cement has the highest production capacity among the listed
companies in cement sector. Following table represent the present installed capacity of
listed cement manufacturing companies and their capacity utilization scenario in the last
financial year.

Shareholding structure
Sponsors hold majority of Sponsors hold significant of the shares of PREMIERCEM (80.83%) followed by MICEMENT
the shares of listed (67.1%) and LAFSURCEML (64.7%). None of the listed cement manufacturing company
cement manufacturing has government ownership. As on date, institutional holding is highest in the HEIDELBCEM
companies (26.7%) followed by CONFIDCEM (23.5%). Both the listed multinational company i.e.
HEIDELBCEM and LAFSURCEML has 1.5% and 1.4% foreign holding respectively. Among
the local companies, MICEMENT and PREMIERCEM has 0.4% and 0.1% foreign
shareholding. Public holding is highest in CONFIDCEM (50.9%) and lowest in PREMIERCEM
(9.3%).
Shareholding Structure
Sponsor/Director Govt Institute Foreign Public
ARAMITCEM 46.42% 0.00% 17.13% 0.00% 36.45%
CONFIDCEM 25.50% 0.00% 23.54% 0.00% 50.96%
HEIDELBCEM 60.67% 0.00% 26.72% 1.46% 11.15%
LAFSURCEML 64.68% 0.00% 14.66% 1.43% 19.23%
MEGHNACEM 49.81% 0.00% 0.00% 0.00% 50.19%
MICEMENT 67.08% 0.00% 17.52% 0.43% 14.97%
PREMIERCEM 80.83% 0.00% 9.85% 0.01% 9.31%

Source: DSE Website

Comparative position in the capital market

Handsome liquidity Among the listed cement manufacturing companies, Lafarge Surma (LAFSURCEML) holds
position the highest paid up capital while Meghna Cement (MEGHNACEM), a concern of
Bashundhara Group holds the lowest paid up capital.

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM

Relative Position
Current Price 38.7 156.4 463.6 64.3 106.3 98.0 94.4
Market Cap (mn) 1,311 7,037 26,195 74,676 2,392 14,553 9,954
Paid-up Capital (mn) 338.8 450.0 565.0 11,613.7 225.0 1,485.0 1,054.5
52 Week Range 29.2 - 49.2 82.3 - 165.0 445.1 - 574.0 61.0 - 90.0 88.4 - 120.5 72.6 - 112.2 82.5 - 103.5
Free Float (Pub+Ins.+For) 53.58% 74.50% 39.33% 35.32% 50.19% 32.92% 19.17%
Market weight 0.03% 0.18% 0.67% 1.91% 0.06% 0.37% 0.25%
3 Months Average T/O (mn) 4.7 71.1 12.6 43.2 0.5 12.1 5.5
3 Months Return -4.4% 18.6% -8.80% -10.70% -3.40% -11.50% 0.10%
No. of Shares (mn) 33.9 45.0 56.5 1,161.4 22.5 148.5 105.5
Handsome
Source: DSE Website liquidity
& EBLSL Research

position

10 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Comparative financial position

As per the latest 12 months ended audited financial statements, LAFSURCEML has the
highest asset base (BDT 21.1 billion) followed by MICEMENT (BDT 17.1 billion).
Multinational company LAFSURCEML and HEIDELBCEM do not have any long term debt
in their capital structure. LAFSURCEML has some form of STD but the amount is not
significant compared to other similar companies. MICEMENT has the highest amount of
long term debt as well as total debt in their capital structure.

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM

Q1' 2016-17 Q3' 2016-17 Q1' 2017 Q1' 2017 Q3' 2016-17 Q3' 2016-17 Q3' 2016-17
Ann. Ann. Ann. Ann. Ann. Ann. Ann.
Company fundamentals
Assets 2,842 7,060 10,858 21,091 4,884 17,088 12,087
Long term debt 484 4 0 0 210 1,464 1,417
Total debt 1,827 2,639 0 460 3,003 8,063 6,189
Equity 476 3,507 5,948 15,792 773 6,964 4,230
Debt Equity 383.74% 75.26% 0.00% 2.91% 388.33% 115.78% 146.32%
Debt Total Asset 64.29% 37.39% 0.00% 2.18% 61.49% 47.19% 51.20%
Interest Cov ratio 0.9 4.7 n/a 43.0 1.1 4.1 3.4
Note: ARAMITCEM, CONFIDCEM and MEGHNACEM has changed their financial year from December ending to June ending from the last financial year, as a result they have
published 18 Months audit report as on June 2016. However, for comparison purpose we have only considered latest quarterly financial statements of the respective companies.

Comparative financial results & profitability indicators

HEIDELBCEM posted highest revenue in the last quarterly financial statements on an

annualized basis while ARAMITCEM posted lowest revenue among listed cement
manufacturers. Gross profit margin and operating profit margin of LAFSURCEML were the
highest (28.3% and 18.8% respectively) in the latest quarter on an annualized basis. Own
sourcing of raw-materials by LAFSURCEML made it cost leader in the market with lowest
production cost per unit.

Financial Information (BDT mn)

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM
Q1' 2016-17 Q3' 2016-17 Q1' 2017 Q1' 2017 Q3' 2016-17 Q3' 2016-17 Q3' 2016-17
Ann. Ann. Ann. Ann. Ann. Ann. Ann.
Revenue 1,134 3,317 12,377 9,740 4,546 9,523 9,856
Gross Profit 270 482 2,839 2,753 421 1,755 1,739
Operating Profit 186 326 1,858 1,834 232 1,277 1,121
Net Profit -37 463 1,426 1,238 17 706 552
Profitability
Gross Profit Margin 23.8% 14.5% 22.9% 28.3% 9.3% 18.4% 17.6%
Operating Profit Margin 16.4% 9.8% 15.0% 18.8% 5.1% 13.4% 11.4%
Net Profit Margin -3.3% 13.9% 11.5% 12.7% 0.4% 7.4% 5.6%
ROA -1.3% 6.6% 13.1% 5.9% 0.3% 4.1% 4.6%
ROE -7.8% 13.2% 24.0% 7.8% 2.2% 10.1% 13.1%

Note: ARAMITCEM, CONFIDCEM and MEGHNACEM has changed their financial year from December ending to June ending from the last financial
year, as a result they have published 18 Months audit report as on June 2016. However, for comparison purpose we have considered latest quarterly
financial statements.

11 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Comparative valuation tools
HEIDELBCEM cement offers lucrative cash dividend among the listed cement
manufacturing companies. MEGHNACEM is currently trading at the highest PE multiple
(139.9x) followed by LAFSURCEML (59.5x).

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM

Latest 12 Months' EPS -2.0 12.1 22.7 1.4 0.7 4.8 6.6
EPS (anualized) -2.1 10.3 25.2 1.1 0.8 4.8 5.2
DPS 1.2* 3.75* 30 1.0 1.5* 2 1.5
NAVPS 12.6 78.0 105.3 13.6 34.4 46.9 40.1
P/E n/a 15.2 18.4 59.5 139.9 20.6 18.0
P/V 3.1 2.0 4.4 4.7 3.1 2.1 2.4
*DPS for the 18 months period.

Dividend history
Even though several of the companies in cement sector used to declare bonus dividend
along with cash dividend in the past years, there is a trend towards distributing cash
dividend in recent period. Like most other MNCs’ in the market, HEIDELBCEM has been
declaring sound cash dividend over the year. LAFSURCEML did not declare any dividend
up to FY2013. Since FY2014 LAFSURCEML has been declaring interim dividend along with
its final dividend declaration but total dividend remained 10% of its paid up capital in each
of the year. ARAMITCEM, CONFIDCEM and MEGHNACEM has declared total 12%, 37.5%
and 15% dividend for the 18 months period of January 2015 to June 2016.

Dividend History
2011 2012 2013 2014 2015 2016
ARAMITCEM 10%B 10%C 10%C 10%C n/a 12%C*
CONFIDCEM 20%C & 20%B 20%C 27.5%C 25%C n/a 37.50%*
HEIDELBCEM 45%C 50%C 380%C 380%C 300%C 300%C
LAFSURCEML n/a n/a n/a 10%C 10%c 10%C
MEGHNACEM 25%C 25%C 15%c 15%C n/a 15%C*
MICEMENT 15%C & 35%B 35%C & 10%B 40%C 30%C 25%C 20%C
PREMIERCEM n/a n/a 40%C 30%C 20%C 15%C
*Dividend for 18 months period ended on June 2016; Source: DSE & EBLSL Research

Performance of cement sector in DSE

Cement sector holds 3.5% share of DSE market capitalization which has been in
downtrend since June 2015 and the downtrend sustained until July 2017. Reason behind
the trend is 50.3% fall the price of LAFSURCEML over the period holding 58.34% of sector
capitalization. Due to seasonality of the sector, most of the stocks performs better in the
peak season (first half of calendar year). The sector underperformed relative to the
market since September 2015 as visible in the rebased performance of cement sector and
overall market capitalization
.

12 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Cement Sector Cap to Market Cap
8.0 %

7.1%
7.0 %

6.0%
6.0 %
5.7% 5.7%

6.1%
5.9% 5.0%
5.7% 4.7%
5.0 %
4.6% 4.6% 4.5% 4.5%
5.3% 4.3% 4.4%
4.0%
4.8%
4.7% 4.6% 4.6% 4.6% 3.7%
4.0 %
4.5% 3.5%
4.3% 4.3%
3.9%
3.0 % 3.6%

2.0 %

Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17

Rebased Performance of Cement Sector Compared to DSEX

130 DSEX Cement Sector M.Cap

110

90

70

50
Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17

Rebased Performance of Listed Cement Manufacturers M. Cap Vs DSEX

135.0

115.0

95.0

75.0

55.0 DSEX ARAMITCEM CONFIDCEM

HEIDELBCEM LAFSURCEML MEGHNACEM
MICEMENT PREMIERCEM
35.0
Nov-14 Mar-15 Jul-15 Nov-15 Mar-16 Jul-16 Nov-16 Mar-17 Jul-17

13 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
Investment Insights

Investment Insights
Company Company Insight Potential
Name Impact
Aramit Cement Limited has recently increased its production capacity from 0.2 mn MT
to 0.7 mn MT. The sales may get boosted in the upcoming quarters
ARAMITCEM
The company’s operating expenses as well as finance expenses has increased
significantly that resulted into significant fall in the net profit margin
Successful implementation of the acquisition deal with Holcim Bangladesh Limited has
increased the company’s production capacity significantly that will soon result in huge
growth in earnings and profitability
The present installed annual production capacity of Holcim Cement (Bangladesh) Ltd.
is 2.2 million MT and average capacity utilization ratio is 60-70%
LAFSURCEML The company has already received the permission from Indian Government to
increase Limestone import limit from 2.0 million MT to 5.0 million MT from India
The company will be able to supply more clinker in local market and boost in topline
growth
Production cost and financial expense have increased significantly in the recent
quarters
The company is in the process of acquiring 99.99% share of a small power plant by
investing BDT 910.8 million only to ensure uninterrupted electricity supply for
production of the Company that will save electricity cost significantly
The Company has informed that the Board of Directors has decided to build a
Wharf/Jetty at its Kanchpur Plant for increasing loading and unloading facilities of the
HEIDELBCEM Plant at a cost of BDT 325.2 mn (apporx.) which will increase the productivity of
Kanchpur Plant
Operating expense and manufacturing overhead cost have increased significantly for
the company. Selling and distribution expense and administrative expense have
increased as % of revenue which stood at 3.4% and 4.6% respectively in the Q1’2017
which were 2.1% and 3.7% in the previous year
Confidence Cement Limited will hold ownership of 51% in the new joint venture and
the new joint venture will be installing two furnace oil based power plants in Rangpur
and Bogra each having 113 MW capacity
The expected yearly revenue from the two power plants are estimated to be
(considering 80% operational time of the plants) BDT 13.0 billion
At conservative 10% (on the basis of other HFO based power plants) NPM, Confidence
Cement Limited will have share of profit of BDT 630.9 million from the commencement
CONFIDCEM of full year commercial production.
CCL has completed sale of the holdings of Energypac Confidence Power Venture
Limited and ECPV Chittagong Limited at a selling consideration of BDT 807.9 million
This will pose a one-off gain of BDT 63.8 million for CCL. The EPS has absorbed an
impact of roughly BDT 1.41 due to one-off gain in the 4th quarter of 2016-17
The company is expanding their production capacity to 1.44 million MT from 0.75
million MT
The new unit of production is expected to be ready for commercial production from
October, 2017

14 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 The projected investment in new joint venture is BDT 5.3 bn which will be financed by
bank loan (BDT 4.5 bn) and internal source which will increase the financial expense
from BDT 105.6 mn in 2016-17 (annualized) to BDT 296.5 mn which will negatively
impact the EPS in 2017-18 period
Very low profit margin indicates that the company is underperforming the industry
MEGHNACEM with high cost of production and return on equity is also lower while debt-equity ratio
is very
The company is installing 5th unit with an additional capacity of 1.8 mn MT per year
which will raise their existing production capacity of 1.7 mn MT to 3.5 Mn MT
It is expected that the commercial production from the new unit will be started from
August 2017
MICEMENT MICEMENT is adopting VRM technology in its 5th unit which is superior than ball-mill
technology
The adoption of VRM technology will reduce the power consumption and produce finer
quality products
Debt to equity ratio of this company is showing an increasing trend at a higher rate
The company is implementing an expansion plan to increase production capacity to 5.8
million MT per year (100% enhancement). The project is expected to be completed
PREMIERCEM within 2018
Company only utilizing its 55.0% capacity. High amount of fixed cost investment remain
unutilized. As a result its revenue growth rate and ROE have been in decreasing trend
Note: The Green bar represents investment positive while the Red bar refers to investment concern.

15 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Comparative Ratio Analysis
Industry
Ratio Analysis 2015 2015-16 2016 2016 2015 2015-16 2015-16 Average
Particulars ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM
Liquidity Ratios:
Current Ratio 1.2 1.0 1.7 2.5 1.1 1.3 1.1 1.4
Quick Ratio 1.1 0.9 1.3 2.2 0.9 1.2 0.8 1.2
Cash Ratio 0.0 0.1 1.0 1.1 0.1 0.5 0.0 0.4
Operating Efficiency Ratios
Inventory Turnover Ratio 5.1 7.4 5.3 5.6 5.7 9.2 7.5 6.5
Receivable Turnover Ratio 1.1 4.5 9.3 7.9 5.2 8.5 4.9 5.9
Average Collection Period (Days) 315.2 80.7 38.9 45.7 69.8 42.5 73.0 95.1
Inventory Conversion Period(Days) 70.8 48.6 68.5 64.4 63.6 39.0 48.2 57.6
Operating Cycle (Days) 386.0 129.2 107.4 110.1 133.4 81.6 121.2 152.7
A/C Payable Turnover Ratio 4.2 15.1 2.2 3.0 20.3 21.0 14.2 11.4
Payables Payment Period (Days) 85.3 23.9 160.4 120.7 17.8 17.1 25.4 64.4
Cash Conversion Cycle (Days) 300.7 105.3 (53.0) (10.6) 115.6 64.5 95.7 88.3
Total Asset Turnover 40.0% 54.5% 104.0% 51.1% 99.1% 63.7% 86.3% 71.2%
Fixed Asset Turnover 1008.1% 183.7% 316.1% 91.1% 439.6% 182.1% 147.7% 338.3%
Operating Profitability Ratios
Gross Profit Margin (GPM) 27.1% 16.9% 25.9% 35.1% 11.3% 18.4% 21.2% 22.3%
Operating Profit Margin (OPM) 19.9% 12.1% 18.4% 26.9% 6.7% 13.3% 14.7% 16.0%
Pre Tax Profit Margin 2.5% 15.0% 19.6% 27.5% 1.9% 10.9% 9.5% 12.4%
Net Profit Margin (NPM) 1.9% 13.8% 14.2% 20.8% 1.4% 8.3% 7.4% 9.7%
Return on Total Assets (ROA) 0.8% 7.5% 14.8% 10.6% 1.4% 5.3% 6.4% 6.7%
Return on Equity (ROE) 3.2% 14.1% 27.0% 14.5% 8.0% 11.1% 15.9% 13.4%
Leverage Ratios
Total Debt to Equity 271.2% 59.8% 0.0% 3.4% 367.0% 84.4% 114.1% 150.0%
Debt to Total Assets 0.8% 0.0% 0.0% 0.0% 1.7% 0.0% 3.4% 1.5%
Coverage Ratios
Times Interest Earned (TIE) 1.2 4.7 - 40.4 1.4 5.0 3.1 9.3
Cash Coverage Ratio 0.2 1.6 - 51.7 1.0 15.5 0.5 11.8
Valuation Ratios
P/B (price to book) Ratio 2.7 1.1 5.6 6.2 3.0 1.7 2.2 3.2
Book Value Per Share 15.0 73.8 99.0 13.2 35.3 45.3 41.2 46.1
EPS 0.5 10.4 26.7 1.9 2.8 5.0 6.5 7.7
Dividend per Share 0.9 2.5 30.0 1.0 1.0 2.0 1.5 5.6
Dividend Payout Ratio 184.9% 24.0% 112.4% 52.2% 35.2% 39.9% 23.1% 67.4%
Retention Rate -84.9% 76.0% -12.4% 47.8% 64.8% 60.1% 76.9% 32.6%
P/E Ratio 84.5 7.7 20.7 42.8 37.2 14.9 14.0 31.7
EV/EBITDA 15.3 10.2 12.2 26.6 16.3 8.6 8.5 14.0
EV/Sales 3.2 1.6 2.6 8.6 1.1 1.5 1.5 2.9
Price/Sales 1.6 1.1 2.9 8.9 0.5 1.2 1.0 2.5
Sales/ Share 25.5 75.7 187.6 9.2 200.8 60.7 88.8 92.6
Growth Rates
EPS Growth Rate 8.2% 100.2% 0.0% -2.8% -36.6% 14.7% 69.3% 25.5%
Sales Growth Rate 38.4% -12.8% 1.1% -2.2% 20.8% 9.1% 15.6% 10.0%
Gross Profit Growth Rate 56.6% -6.2% 8.1% -3.8% 14.7% 17.4% 60.5% 21.0%
EBIT Growth Rate 41.0% -6.9% 14.3% -0.2% -10.4% 21.5% 51.4% 15.8%
PBT Growth Rate 39.2% 37.1% 9.4% 4.4% -38.8% 14.5% 106.8% 24.7%
Net Income Growth Rate 8.2% 100.2% 7.6% -2.8% -36.6% 14.7% 69.0% 22.9%
Total Asset Growth Rate 15.6% 20.1% 4.3% 1.4% 18.5% 17.4% 7.5% 12.1%
The colored cells indicate outperformance over the industry average

16 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Statement of Comprehensive Income (Latest Financial Statements of Companies Listed under Cement Sector)

Sector: CEMENT 2015 2015-16 2016 2016 2015 2015-16 2015-16

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM
BDT Million
Gross Profit 234 575 2,742 3,770 508 1,659 1,988
Sales 863 3,404 10,600 10,729 4,517 9,017 9,362
Cost of Goods Sold 629 2,829 7,859 6,959 4,009 7,357 7,374
Operating Profit 172 413 1,946 2,884 304 1,196 1,374
Other Operating Income/Loss 5 3 131 -11 74 40 -30
Selling/Distribution Expense 35 79 426 196 136 353 454
Administrative Expense 32 86 500 679 143 150 129
Profit Before Income Tax 22 512 2,075 2,947 85 980 893
Non-operating Income - - - - 34
Non-operating Loss 76 3
Financial Expense 149 88 - 71 221 238 440
Financial Income 28 241 135 7
Share of Profit from Associates 252 37
Contribution to WPPF 1 18 109 - 4 49 41
Income Tax Expense 5 43 568 721 21 236 201
Current Year 5 95 550 721 34 178 186
Prior Year - 17 -
Deferred Tax 0 -52 1 - -13 58 16
Net Profit After Tax 16 469 1,508 2,226 64 744 691
Comprehensive Income
Total Comprehensive Income 16 469 1,508 2,226 64 744 691
Minority Interest 0 7
PAT to CS 16 469 1,508 2,227 64 744 684
Number of Shares 33.9 45 56.5 1,161.40 22.5 148.5 105.5
EPS 0.5 10.4 26.7 1.9 2.8 5 6.5

17 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
 Statement of Financial Position (Latest Financial Statements of Companies Listed under Cement Sector)

Sector: CEMENT 2015 2015-16 2016 2016 2015 2015-16 2015-16

ARAMITCEM CONFIDCEM HEIDELBCEM LAFSURCEML MEGHNACEM MICEMENT PREMIERCEM
Non-current Assets 885 3,571 3,532 12,741 1,027 5,551 6,386
Property, Plant and Equipment 86 1,853 3,353 11,776 1,027 4,951 6,338
Capital work in Progress 759 1,194 178 - - 465 47
Other Non-current Assets 40 523 0 965 - 134 -
Current Assets 1,276 2,675 6,657 8,238 3,531 8,609 4,458
Inventories 124 382 1,496 1,245 708 798 987
Trade Receivables 756 882 1,145 3,295 876 1,140 1,898
Other Current Assets 362 1,274 156 1 1,721 2,988 1,365
Cash and Cash Equivalents 34 138 3,860 3,697 226 3,683 208
Total Assets 2,161 6,246 10,189 20,980 4,559 14,160 10,844
Equity and Liabilities 2,161 6,246 10,189 20,980 4,559 14,160 10,844
Equity 507 3,319 5,592 15,372 794 6,725 4,348
Equity to CS 507 3,319 5,592 15,372 794 6,725 4,348
Share Capital 339 450 565 11,614 225 1,485 1,055
Share Premium 85 658 2,957 442
Other Equity Component 84 2,211 5,027 3,759 569 2,283 2,852
Non-Current Liabilities 581 288 750 2,371 451 714 2,301
Long Term Debt 563 3 236 129 1,585
Other Non-Current Liabilities - - 138 95 - - 300
Retirement Benefit Obligations (gratuity) 19 50 37 80 80 101
Deferred Tax Liability -1 235 575 2,276 135 504 316
Current Liabilities 1,073 2,639 3,847 3,236 3,314 6,721 4,194
Trade Payables 221 188 3,502 2,711 377 620 520
Short Term Loan 790 1,963 524 2,661 5,064 2,900
Other current Liabilities 62 489 345 1 276 1,037 774
Total Liabilities 1,654 2,927 4,597 5,607 3,765 7,435 6,495

18 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017
DISCLAIMER
This document has been prepared by the Research Team of EBL Securities Limited (EBLSL) for information only of its
clients residing both in Bangladesh and abroad, on the basis of the publicly available information in the market and own
research. This document has been prepared for information purpose only and does not solicit any action based on the
material contained herein and should not be taken as an offer or solicitation to buy or sell or subscribe to any security.
Neither EBLSL nor any of its directors, shareholders, member of the management or employee represents or
warrants expressly or impliedly that the information or data of the sources used in the documents are genuine,
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information herein.
ANALYST DISCLAIMER
The person or persons named as the author(s) of this report hereby certify that the views expressed in the research
report accurately reflect their personal views about the subject matters discussed. No part of their compensation
was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in the research
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subject to change without any notice. All reasonable care has been taken to ensure the accuracy of the contents of this
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information herein.
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19 Disclaimer of EBLSL and the Analysts is located at the end of this report. 7 September 2017