Higher costs, weaker taka shrink BD Lamps profit by 87%

Publicly listed electric bulbs producer Bangladesh Lamps Limited, widely known as BD Lamps, has reported an 86.6% year-on-year decline in profit in the fiscal 2022-23, owing to higher costs and foreign exchange rate. 

In FY23, the company's earnings per share (EPS) stood at Tk1.1, which was Tk8.2 in the previous fiscal. 

In its stock exchange filing on Thursday, the company blamed the sharp increase in its finance costs, local currency devaluation, and adverse changes in the duty structure for its profit decline. 

In the July to September quarter of the ongoing fiscal year, the company's loss per share stood at Tk6.6, which was an EPS of Tk1.65 in the same period of FY23. 

The company stated in its disclosure that the quarterly EPS decreased due to a 20.3% year-on-year drop in revenue during the quarter. 

Also, higher cost of materials due to increase in foreign exchange rate and the imposition of higher custom duties after the national budget 2023-24, and increase in finance costs due to higher bank borrowings rate dragged down the profit, the disclosure reads. 

For FY23, the company has recommended a 10% cash dividend. 

BD Lamps, which was listed on the stock exchanges in 1981, manufactures Philips lights under an exclusive licensing agreement with Philips Electronics NV Holland.

It also manufactures electric bulbs, CFLs, tube lights, and other lighting products under the Transtec brand.