BSRM sees profits fall despite record turnover

BSRM Ltd, the largest steelmaker in Bangladesh, said its profits fell in the financial year ending in June 2023 even though it recoded 44 percent higher sales to take the turnover to over Tk 11,500 crore, the highest so far.

The Chattogram-based steelmaker recorded a 5 percent drop in its profit year-on-year to Tk 291.3 crore in the July-June period of financial year 2022-23, according to price sensitive information posted on the company's website.

BSRM's earnings per share (EPS) declined to Tk 9.76 during the last financial year from Tk 10.34 in financial year 2021-22.

"We had the highest ever sales in our history last financial year. However, our profits fell as a result of increased finance cost. The higher interest cost and devaluation of taka is to blame for this," said Shekhar Ranjan Kar, company secretary of BSRM.

He said the company had to pay an extra Tk 10-12 per US dollar for import payments for raw materials compared to the booking rate listed on the letters of credit.

"This has affected our profit," he added.

BSRM declared 25 percent cash dividends for its shareholders.

And while BSRM reported a decline in earnings, its sister concern BSRM Steels Ltd was not immune from a fall in profit either.

BSRM Steels, another listed company, saw its profits decline 9 percent year-on-year to Tk 298 crore in financial year 2022-23.

BSRM Steels sold Tk 8,452 crore worth of rods and other steel products in the July-June period of financial 2022-23, which was 25 percent higher than the previous year, according to price sensitive information of the steelmaker.

Similarly, the company's board reported 25 percent cash dividend for the year that ended on June 30.

Shares of both the companies under BSRM group remained unchanged at the Dhaka Stock Exchange yesterday.