Hongshi Shivam Cement Reports Rs 10.318 Billion Revenue In Nine Months Of Fiscal Year 2082/83

26th July 2026, Kathmandu

Hongshi Shivam Cement Private Limited has recorded an operating revenue of Rs 10.318 billion during the first nine months of the fiscal year 2082/83.

Hongshi Shivam Cement Revenue

The financial performance highlights the company’s sustained position as a leading manufacturing player within Nepal’s competitive industrial sector.

The nine month figure follows total annual operating revenues of Rs 13.243 billion recorded in fiscal year 2081/82 and Rs 10.960 billion generated in fiscal year 2080/81. The financial trajectory demonstrates steady operational capacity, market demand recovery, and scalable production output across its manufacturing units.

Strengthened Profitability And Operating Margins

The company’s core profitability indicators have shown significant structural improvement. During the first nine months of fiscal year 2082/83, Hongshi Shivam Cement achieved an operating profit margin of 31 percent relative to its total operating revenue.

This margin expansion reflects an ongoing upward trend when compared to historical performance metrics:

• Fiscal Year 2081/82: Operating profit margin stood at 29.1 percent.
• Fiscal Year 2080/81: Operating profit margin was recorded at 18.8 percent.
• Preceding Fiscal Years: Margins were previously reported at 15.8 percent and 9.5 percent.

The progressive margin expansion is primarily driven by optimized clinker production costs, improved energy efficiencies, higher capacity utilization, and favorable raw material sourcing strategies.

Decline In Leverage And Improved Debt Coverage Metrics

Hongshi Shivam Cement has simultaneously strengthened its balance sheet by systematically lowering its debt reliance and expanding coverage ratios.

Key financial leverage and coverage indicators reported by the company include:

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• Total Debt To Tangible Net Worth: Reduced to 0.15 times, down from 0.17 times recorded in the corresponding prior period.
• Total Outside Liabilities To Tangible Net Worth: Dropped to 0.41 times, confirming lower overall institutional liabilities.
• Total Debt To Operating Profit Ratio: Improved to 0.68 times, pointing to swift debt payback capacity relative to cash earnings.
• Interest Coverage Ratio: Reached 22.15 times, highlighting comfortable cash earnings relative to interest obligations.
• Debt Service Coverage Ratio: Rose to 18.70 times, demonstrating a robust capability to meet ongoing principal and interest debt repayments on schedule.

Nepal’s Largest Integrated Greenfield Cement Manufacturer

Hongshi Shivam Cement operates as the largest integrated greenfield cement production facility in Nepal. The company’s manufacturing infrastructure features an annual clinker production capacity of approximately 2 million metric tons alongside a cement grinding capacity of around 2.3 million metric tons.

Established in September 2015, the company maintains its primary integrated manufacturing plant in Binayi Triveni Rural Municipality of Nawalparasi district. Under its flagship brand Hongshi, the entity produces and supplies high-grade Ordinary Portland Cement (OPC) and Portland Pozzolana Cement (PPC) for major infrastructure, commercial, and residential construction projects across Nepal.

Promoter Profile And Joint Venture Ownership

The ownership architecture of Hongshi Shivam Cement combines international manufacturing expertise with established domestic industrial presence.

Hongshi Group China: Holds a controlling 70 percent equity stake through Hongkong Red Lion Cement No. 3 Limited. The parent Hongshi Group operates nearly 50 large-scale cement manufacturing plants across China and has expanded its international footprint into Laos, Indonesia, and Myanmar.

Shivam Holdings Limited: Holds the remaining 30 percent ownership stake. Shivam Holdings functions as a key subsidiary of Shivam Cements Limited, holding an approximate 85 percent stake in the listed parent entity.

ICRA Nepal Reaffirms Credit Rating

In a parallel financial update, credit rating agency ICRA Nepal has reaffirmed the company’s short term bank facilities rating.

The agency assigned an A2+ (A-Two Plus) credit rating to Hongshi Shivam Cement’s Rs 6 billion short term bank loan limits. The rating decision reflects the credit rating agency’s confidence in the company’s strong market positioning, robust promoter profile, expanding operating margins, low leverage levels, and healthy overall liquidity framework.

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