Aamra Networks offers just 1 paisa dividend amid mounting losses
The IT firm’s nominal payout for general shareholders comes amid a severe liquidity crisis and mounting losses.
Aamra Networks Limited has recommended a nominal 0.10% cash dividend for its general shareholders only for FY2025, which amounts to just 1 paisa per share.
The announcement follows a disastrous financial year for the IT sector company, during which its earnings plummeted by 94%, and it struggled with a deepening cash flow crisis that has already relegated it to the "Z" category on the stock exchange.
According to the company's financial statements finalised in a board meeting on 3 September, the total dividend payout for general shareholders will amount to a mere Tk6.22 lakh against 6.22 crore shares.
In a move to preserve some liquidity, the company's sponsors and directors, who hold 3.07 crore shares, will not receive any portion of this dividend.
Keep updated, follow The Business Standard's Google news channel
This token gesture places Aamra Networks among the lowest dividend-yielding companies on the Dhaka Stock Exchange, mirroring recent ultra-low payouts from firms like Acme Pesticide and National Feed Mill.
The company's financial health appears to be in a tailspin. For the 2024-25 fiscal year, the earnings per share (EPS) fell to a negligible Tk0.13, down from significantly higher levels in the previous year. The fourth quarter alone, spanning April to June 2025, saw the company incur a net loss of Tk5.95 crore.
The downturn showed no signs of abating in the 2025-26 fiscal year either. For the July-March period, revenue dropped by 22% to Tk55.85 crore, culminating in a nine-month net loss of Tk4.12 crore.
Management attributed this sharp decline to a combination of falling sales and a rise in operating expenses. However, internal sources point to a more systemic issue. A senior official from Aamra Networks, speaking on condition of anonymity, revealed that the company is facing an acute fund crisis driven by the non-recovery of dues from corporate clients. Since the company primarily serves large businesses, the failure of these clients to clear payments for services rendered has crippled the firm's cash flow.
This is reflected in the net operating cash flow per share, which stood at a negative Tk0.55 at the end of March 2026.
The 1 paisa dividend carries significant regulatory weight. Under current rules, a company declaring any dividend up to 5% is placed in the "B" category, while those paying 10% or more are eligible for the "A" category.
Moving out of the "Z" category is crucial for the company, as both "A" and "B" category stocks are eligible for margin loan facilities under the BSEC's new regulations.
Aamra Networks was downgraded to the junk category in February 2025 after it failed to disburse a previously approved 10% cash dividend for the 2023-24 fiscal year.
However, the path back to the "B" category remains complicated. The company failed to hold its Annual General Meeting (AGM) for the 2024-25 fiscal year within the legally stipulated time. Consequently, the date for the upcoming AGM is subject to consent from the honorable High Court. The record date for the 1 paisa dividend has been set for 24 September.
Aamra Networks had previously been an active player in the capital market, raising Tk56.25 crore through its initial public offering in 2017 and a further Tk93 crore through a rights offer in 2024 for business expansion.
Despite these capital injections, the company's recent operational paralysis has left investors wary. On Thursday, its shares closed marginally higher at Tk19.80, though market analysts warn that the company's reliance on "paper profits" and its struggle to collect actual cash from clients remains a major red flag for the bourse, according to the market insiders.
