Salvo Chemical’s profit declines 54% in October-December

Salvo Chemical Industry Limited reported a nearly 54 per cent year-on-year decline in profit to Tk 2.41 crore in the second quarter of the current financial year.

The profit stood at Tk 5.20 crore in the October-December quarter of the previous financial year of 2021-22.

Thus, the chemical manufacturer reported earnings per share of Tk 0.37 for October-December of 2022-23 against Tk 0.80 in the second quarter of FY22, according to the unaudited financial statements.

Salvo Chemical made a profit of Tk 6.44 crore in the July-December half of FY23, down about 27 per cent from Tk 8.78 crore in the same half of FY22. So, the EPS fell to Tk 0.99 from Tk 1.35 in the first half of the last financial year.

The EPS decreased due to an increase in the costs because of higher raw material prices in the local market as well as internationally, the domestic currency depreciation, and the increase in energy price, which adversely affected the overall profitability of the company, said Salvo Chemical in a filing on the Dhaka Stock Exchange.

The net operating cash flow per share declined to Tk 1.17 for July-December of FY23 from Tk 2.26 in the same half of FY22. The NOCFPS decreased owing to a significant increase in cash paid to suppliers and operating expenses, said the filing.

The net asset value per share stood at Tk 15.42 on December 31, 2022, up from Tk 14.58 on June 30, 2022.