The financial condition of the cement companies, which have issued Initial Public Offering (IPO) at premium rates, weakened in the last fiscal year.

Two of the four listed companies–Sonapur Minerals and Oil, and Ghorahi Cement Industry–incurred losses, while Shivam Cement and Sarbottam Cement saw their profits decline in the period, their recently published unaudited financial statements for the fourth quarter of FY 2023/24 show.

Ghorahi Cement Industry incurred a loss of over Rs 1.21 billion in the last fiscal year. The company had earned a profit of Rs 63.1 million in the previous fiscal year. It has a negative earnings per share (EPS) of Rs 26.68 while its net worth stands at Rs 207.93 per share.

Similarly, Sonapur Cement remained at a loss of Rs 469.2 million in the last fiscal year, against the profit of Rs 26.2 million in the previous fiscal year. It also has a negative EPS at Rs 15.26 and a net worth of Rs 163.24 per share.  

Though Shivam Cement remained at a profit of Rs 250.2 million in the period, it was 57.93% less than that in the previous fiscal year. Its EPS and net worth per share were Rs 4.98 and Rs 189.02, respectively, in the last fiscal year. 

Similarly, Sarbottam Cement’s profit totalled to Rs 174.2 million in FY 2023/24, a 18.51% drop than that in FY 2022/23. The company’s EPS and net worth per share stood at Rs 3.75 and Rs 198.83, respectively in the period.

The increase in sales cost affected the companies’ profits. Sarbottam Cement had the highest share price at Rs 955 per unit.