HeidelbergCement Bangladesh's quarterly business takes downturn due to currency crisis

Following its outstanding business performance in the January to March quarter this year, HeidelbergCement Bangladesh Limited has faced a downturn in both revenue and profit over the past two quarters.

Due to shortage in foreign currency, the company could not open letters of credit (LCs) and thus, was unable to utilise its full capacity, according to company sources. 

The Germany-based cement manufacturer began the year 2023 on a positive note by breaking a five-quarter losing streak, and returned to profits with posting a remarkable performance in the first quarter.

The company's revenue was Tk567 crore and profit Tk38.69 crore in the January-March quarter.  

But in the April-June quarter, its revenue fell 20% and profit 70% compared to the previous quarter. 

The decline continued in the July-September quarter as well, as revenue shrank by 36% and profit by 93% compared to the Jan-Mar quarter, and stood at Tk365 crore and Tk2.70 crore respectively. 

Stock performance

Amid business slowdown, the company's stock painted a rosy picture at the Dhaka Stock Exchange (DSE) from 18 April to 7 May this year, as it soared more than 88% to Tk337.6 per share based on a rumour that the company was going to announce a stock dividend. 

But in reality, it paid only a 10% cash dividend to its shareholders for 2022. After the dividend announcement, its share price descended from its peak and on Monday, they closed at Tk247.80 each at the DSE.