BSRM profit soars 197pc in Jul-Mar

Profit of BSRM Ltd soared 197 per cent year-on-year to Tk 273 crore in the first nine months of the 2020-21 fiscal year powered by higher sales, lower finance and operating costs.

The Chattogram-based steel maker's sales rose 4.4 per cent year-on-year to Tk 4,216 crore in the July-March period.

At the same time, its net finance costs dropped 63 per cent to Tk 69 crore from Tk 191 crore.

BSRM, one of the biggest steel makers of Bangladesh, reduced its operating costs during the period by 12.5 per cent to Tk 119 crore.

The news of posting such a huge profit also gave a boost to the price of the company's stocks.

Its stock rose 9.54 per cent to Tk 95.3 when the disclosure came at the Dhaka Stock Exchange.

"Our profit surged thanks to the higher sales, lower finance and operating cost," said Shekhar Ranjan Kar, chief financial officer of BSRM Ltd.

Demand for steel rose at a time when interest rates in banks dropped thanks to the steps taken by the government, he said.

From April 1, 2020, banks are offering single digit interest rates on lending. "It boosted our profits."

The company has loans worth over Tk 2,850 crore under short and long-term borrowing.

Annually 70 lakh tonnes of steel are sold in Bangladesh, where BSRM holds more than 25 per cent of the market share, according to industry insiders.