GPH Ispat posts 86% profit drop in Jul–Dec
The weak half-year performance follows GPH Ispat’s first-ever annual loss since its stock market debut in 2012.
Steel manufacturer GPH Ispat has reported an 86% year-on-year decline in profit in the first half of Fiscal Year (FY) 2026, citing a sharp fall in revenue alongside persistent operating and finance costs.
According to the company's financial statements, earnings per share (EPS) fell to Tk0.09 in the July–December period, down from Tk0.65 in the same period of the previous FY, blaming the lower sales volumes, which, combined with fixed operating and financing expenses.
In the second quarter alone (October–December), EPS dropped 92% year-on-year to Tk0.04, compared to Tk0.51 in the corresponding quarter of FY25.
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The weak half-year performance follows GPH Ispat's first-ever annual loss since its stock market debut in 2012.
In FY25, which ended in June, the Chattogram-based steelmaker posted a loss of Tk24.68 crore, reversing a profit of Tk85.77 crore recorded in FY24. Rising production costs and escalating finance expenses were key factors behind the loss.
Despite the setback, GPH declared a 5% cash dividend for general shareholders for FY25, its lowest payout since listing. The company had paid a 10% cash dividend in FY24, while its highest dividend was 20% in FY21.
In October 2024, GPH sought approval to issue Tk500 crore in preference shares to reduce high-cost debt, but the Bangladesh Securities and Exchange Commission (BSEC) rejected the proposal.
Earlier, the regulator also turned down the company's plan to raise Tk242 crore through a rights issue aimed at capacity expansion.
