BSRM posts over 52% fall in profit

Bangladesh Steel Re-Rolling Mills Limited reported a more than 52 per cent decline in profit in the first half of the ongoing financial year owing to the higher cost of production amid tighter market conditions.   

The country's largest steel manufacturer made a profit of Tk 54.34 crore in October-December of 2022-23, down from Tk 114.06 crore it clocked in the identical quarter in the previous financial year.

Tap here to add The Daily Star as a trusted source

So, BSRM Ltd reported consolidated earnings per share of Tk 1.82 for the first quarter of FY23. It was Tk 3.82 in the same three months of 2021-22.

In a filing on the Dhaka Stock Exchange, the company said the economic situation at home and abroad was volatile during the period.

The foreign currency conversion rate sharply increased which raised the import and production costs. Moreover, there was a shortage in power supply which forced to cut production.

"As a result, the cost of production increased. On the other hand, the market of steel products was under severe pressure," said the post.

But for the sake of the greater interest of the country and to keep the development projects progressing, it was not possible to increase the selling price of steel products keeping pace with the cost of production, said BSRM.

Even though the company incurred a loss for the period, it had to pay minimum tax. As result, the net profit after tax, the EPS and the net asset value (NAV) per share decreased during the period, said the filing.

BSRM incurred losses in the first half of FY23. It reported a loss of Tk 110.18 crore for July-December, which was Tk 242.15 crore in the first half of FY22.

Thus, the consolidated EPS was Tk 3.69 negative in July-December of FY23 against Tk 8.11 in the first half of FY22.

The consolidated net operating cash flow per share fell to Tk 5.21 in the first half of FY23 from Tk 15.61 in the same period of FY22. The consolidated NAV per share was Tk 126.90 on December 31 and Tk 134.29 on June 30.

Shares of BSRM were unchanged at Tk 90 on the DSE yesterday.