Two BSRM companies suffer losses in Jul-Sep

Bangladesh Steel Re-Rolling Mills Limited and BSRM Steels Limited suffered losses in the first quarter of the current financial year owing to the increase in foreign currency conversion rate, the shortage of power supply, and the rise in production costs.

BSRM registered a loss of Tk 164.52 crore in the July-September quarter of 2022-23. This compared to Tk 128.09 crore profit the largest steel manufacturer in the country made in the corresponding three-month period of 2021-22.

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Thus, the consolidated earnings per share were Tk 5.51 in negative in July-September against Tk 4.29 in the same quarter a year earlier, according to the unaudited financial statements.

The consolidated net operating cash flow per share (NOCFPS) was Tk 4.27 in July-September this year against Tk 2.72 in July-September of 2021.

The consolidated net asset value (NAV) per share was Tk 128.65 on September 30 and Tk 134.29 on June 30.

"The EPS and the NAV per share decreased due to the increase of foreign currency conversion rate, the shortage of power supply, and the increase in production costs," said BSRM Ltd in a filing on the Dhaka Stock Exchange (DSE).

The taka lost its value by 15 per cent against the US dollar on the interbank foreign exchange market of the Bangladesh Bank during the first quarter amid the depletion of foreign currency reserves, hitting importers since they had to pay more to purchase raw materials and equipment from external sources. 

Factories also faced frequent power outages because of the lower supply of gas which forced them to cut their output. Thus, earnings fell for many companies.

Shares of BSRM closed unchanged at Tk 90 on the premier bourse yesterday.

BSRM Steels posted a loss of Tk 34.96 crore in the first quarter of FY23, whereas it made a profit of Tk 108.65 crore in the three months to September in the previous financial year.

The EPS was a negative Tk 0.93 for July-September against a positive Tk 2.89 in July-September of 2021.

The company blamed the foreign currency transaction loss, the increase in local and imported raw materials prices, and the unfavourable movement of foreign currencies for the losses.

The NOCFPS was Tk 2.93 in July-September of FY23 against Tk 4.29 in the first quarter of FY22.

"The NOCFPS decreased due to more cash payments to suppliers, employees and foreign currency transaction loss," said BSRM Steel in a filing.

The NAV per share was Tk 67.69 on September 30 and Tk 68.99 on June 30.

BSRM Steels shares traded at Tk 63.90 on the DSE yesterday, unchanged from a day earlier.