Higher costs, strong dollar slash BBS Cables profit by 92%
BBS Cables Ltd witnessed a big year-on-year drop in profits in the October to December quarter of 2022 owing to its soaring costs of sales as well as the appreciation of dollar against the taka.
At the end of the quarter, its net profit dropped by 92% to Tk1.99 crore, from Tk24.11 crore in the same quarter of 2021.
Its earnings per share stood at Tk0.09 and net asset value per share at Tk32.76.
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The company said, in a stock exchange filing on Thursday, that its profit plunged also because of a decrease in sale orders, especially government tenders.
But the company also informed that it has received a new sale order of Tk45 crore from the North Electricity Supply Company Limited, which will be effective within 28 days from the contract signing.
In the October to December quarter of 2022, the company's revenue inched up to Tk163.89 crore, from Tk155.43 crore in the same period of the previous year.
In the July to December period of 2022, the revenue fell to Tk317.92 crore, from Tk327.48 crore in the same six months a year ago.
And, the net profit nosedived to Tk4.91 crore, from Tk50.81 crore in the July to December period of 2021.
Back in 2017, BBS Cables raised Tk20 crore from the stock market through an initial public offering.
As of 31 December 2022, sponsors and directors jointly held 30.98%, institutions 20.49%, foreign investors 0.54%, and the general investors 47.99% shares in the company.
The last trading price of each share of the company was Tk49.90 at the Dhaka Stock Exchange on Thursday.
