• Tuesday, September 23, 2014

LankaBangla profit soars, shares fall

Sarwar A Chowdhury

LankaBangla Finance's net profits rose 174 percent last year, powered by a rise in earnings from core business and capital gains from equity investment.
On the back of the huge profit, the listed firm announced higher dividends this year than the previous year.
But the higher profit and dividends fell short of the investors' expectations and the share price of the company declined 1.27 percent on the trading board.
LankaBangla on Sunday recommended 15 percent cash dividends and 5 percent stock dividends for 2013. The joint venture company, listed on the stockmarket in 2006, had disbursed 10 percent stock dividends for 2012.
On the Dhaka Stock Exchange yesterday, each LankaBangla share traded between Tk 73.5 and Tk 68.8, before closing at Tk 69.5.
In 2013, LankaBangla made net profits of Tk 95.45 crore with earnings per share of Tk 4.58, up from Tk 34.80 crore with EPS of Tk 1.67 a year earlier, the company said in a posting on the premier bourse's website.
“The jump in the net profit was due to a combination of factors. Our earnings from the core business including leasing and financing increased last year, while the earnings from brokerage business were also good,” said Mohammed Nasir Uddin Chowdhury, managing director of LankaBangla Finance.


“Capital gain from equity investment also helped the company,” he said.
The company plans to issue non-convertible zero coupon bonds worth Tk 300 crore to meet its ongoing financing requirements.

Published: 12:00 am Tuesday, February 18, 2014

Last modified: 12:14 am Tuesday, February 18, 2014

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