Shivam Cement Profit Growth Jumps 528%
13th February 2026, Kathmandu
Shivam Cements Limited has reported a remarkable financial turnaround, with its net profit surging by over 528 percent in the second quarter of the fiscal year 2082/83. This performance stands out as a significant recovery in Nepal’s manufacturing sector, driven primarily by internal cost efficiencies rather than a massive increase in market sales.
Shivam Cement Profit Growth
The company’s ability to multiply its bottom line while facing nearly flat revenue highlights a strategic shift toward operational excellence and margin protection.
Explosive Net Profit Growth
The unaudited financial report for the first six months of the current fiscal year (ending Poush 2082) reveals a staggering jump in profitability.
Net Profit (FY 2082/83 Q2): Rs 357 million
Net Profit (FY 2081/82 Q2): Rs 56.8 million
Year-on-Year Growth: 528.52 percent
To put this in perspective, the company earned nearly six times more profit in the first half of this year than it did in the same period last year. This surge is particularly notable given the sluggish growth in the broader construction and infrastructure sectors in Nepal over the last few quarters.
Revenue and Efficiency Trends
Despite the massive profit spike, the company’s revenue remained stable, showing that the growth was fueled by saving money rather than selling more volume.
Total Revenue: Rs 3.09 billion
Revenue Change: -0.11 percent (Marginal decline)
The real driver of Shivam Cement’s success was the reduction in operating and trade expenses. The company managed to cut its total operating costs by 9.54 percent, bringing them down to Rs 2.44 billion from Rs 2.70 billion. This suggests that optimized supply chains, lower raw material input costs, and a disciplined approach to administrative overhead significantly boosted the profit margins.
Shareholder Indicators: EPS and Net Worth
The improved financial health has directly translated into better metrics for shareholders. Shivam Cements currently maintains a paid-up capital of Rs 5.59 billion.
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Annualized Earnings Per Share (EPS): Rs 12.77
Net Worth Per Share: Rs 180.38
The rise in EPS is a vital indicator for investors, as it suggests the company is becoming much more efficient at generating returns on each share. Similarly, the net worth per share remains robust, indicating a strong internal book value.
Strategic De-leveraging and Market Context
A key factor supporting this long-term recovery is the company’s aggressive debt-reduction strategy. In recent years, Shivam has successfully reduced its bank borrowings, which has shielded it from the high-interest-rate environment that has plagued other manufacturing firms. By minimizing financial expenses, more of the operating income flows directly to the net profit line.
Furthermore, Shivam Cement’s self-owned limestone mines and advanced German technology plant in Hetauda continue to provide a competitive edge in terms of quality control and production costs.
Investor Outlook for 2082/83
With half the fiscal year complete, the momentum is clearly in favor of the company. However, investors should remain mindful of the following:
Construction Season: The third and fourth quarters typically see higher construction activity in Nepal, which could potentially boost the currently stagnant revenue.
Dividend Potential: Given the strong profit growth, there is increased speculation regarding higher dividend distributions for the current fiscal year.
Market Competition: As more cement companies list on the stock exchange, competition for market share in the OPC and PPC categories remains intense.
Conclusion
The 528 percent surge in Shivam Cement’s profit is a testament to the power of operational discipline. By trimming nearly 10 percent of its operating costs, the company has transformed a flat revenue stream into a record-breaking profit period. For the Nepalese stock market (NEPSE), this performance positions Shivam as a resilient leader in the manufacturing and processing sector, offering both stability and growth potential for long-term investors.
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