Crown Cement's profit fell in the second quarter of the 2024-25 fiscal year despite registering higher revenue. 

The cement producer's profit declined 48 percent year-on-year to Tk 18.85 crore in the quarter.

Its earnings per share (EPS) for the quarter stood at Tk 1.27, down from Tk 2.44 in the same period last year, according to the company's financial statement.

For the first six months of the fiscal year, its EPS dropped 67.96 percent to Tk 1.52 from Tk 4.76 in the same period the previous year.

Crown Cement attributed increased depreciation from capacity expansion, interest expenses on long-term loans, electricity tariff hikes and higher marketing and manpower costs for the EPS decline.  

Despite the profit decline, the company's sales revenue in Q2 grew by 12.99 percent to Tk 803.55 crore, driven by a 12.08 percent rise in sales volume and a 0.63 percent increase in per-bag prices.

However, the cost of goods sold rose by 10.82 percent, mainly due to higher factory overheads linked to additional depreciation on the newly installed sixth unit, increased electricity tariffs, and underutilisation of the expanded production capacity.

The cement producer's gross profit margin declined by 3.64 percentage points, reflecting the impact of higher depreciation costs, increased electricity tariffs, and additional expenses related to new capacity operations, including lease rent for a new bag plant and lighter vessels as well as higher salary and wages. 

Its net operating cash flow per share saw a significant jump of 194.73 percent, reaching Tk 11.71 in the first six months from Tk 3.97 a year ago.

The improvement was attributed to better cash collection, non-cash depreciation expenses, and extended credit terms from suppliers. 

Selling and distribution costs rose due to increased spending on advertisements and marketing initiatives, along with the deployment of additional sales personnel to maximise capacity utilisation.

The company's finance costs declined by 8.44 percent primarily due to a lower foreign exchange loss.

However, its interest expenses increased due to loan servicing for the sixth unit expansion and higher interest rates, the company said.