Square Pharma’s profit up, Square Textiles’ down

Square Pharmaceuticals saw higher profits year-on-year in the first half of the current fiscal year of 2022-23 though the growth was lower. Meanwhile, profits of its sister concern, Square Textiles, declined. 

The listed drug maker registered a profit of Tk 1,062 crore, up 10 per cent, according to the company's financial report.

In the same period of the previous year, it was Tk 964 crore, up 19 per cent year-on-year.

The company's sales advanced 10.8 per cent to Tk 3,752 crore in the July-December period of fiscal year 2022-23.

The company had a large inventory and the local currency's depreciation against the greenback pushed up spending behind raw materials, which in turn impacted the profits, said a top official of the drug maker, preferring anonymity.

If the current restrictions on opening letters of credit and the local currency's depreciation continues, profits will suffer a bigger hit, he said

The increase in costs cannot be passed onto customers at the moment as government permission was required, he said.

The company's cost for raw materials was 41 per cent of its total turnover in the six-month period of fiscal year 2022-23 while it was 40 per cent in the previous year.

Square Textile logged a profit of Tk 55.70 crore in the first half of the year, down 40 per cent year-on-year.

The textile maker's turnover rose 0.81 per cent to Tk 801 crore whereas it was Tk 795 crore in the same period of the previous year.

"The company's profits fell due to increases in the price of raw materials and energy cost for gas and electricity crisis as well as increase of fuel price," the company said in its financial report.