Listed govt firms post mixed performances in Q2 F22

The state-run listed companies in different sectors have posted mixed performances in terms of profit during the October-December period of FY22 when the Covid-19 pandemic situation was gradually returning to normal.

Out of the 19 government firms listed on the stock market, sixteen published half-yearly financial reports as of 2 February as they follow the June-July fiscal.

Among them, five companies reported year-on-year profit growth, four reported a decline, one returned to profit from losses and six continued posting losses.

According to the financial statements, telecommunication service providers and electricity, petroleum, and oil suppliers posted higher profits while lubricant blender, gas supplier, and power transmission companies posted lower profits in the second quarter of FY22, compared to the same time of the previous fiscal.

Meanwhile, sugar manufacturers, electrical, engineering, and glass product makers, which have been incurring losses for many years, continued their losing streak. 

Bangladesh Services Limited, owner of five-star hotel InterContinental Dhaka, and the oceangoing vessels management authority Bangladesh Shipping Corporation are yet to publish their quarterly financial statements.

After the deadly Covid-19 hit the country in March 2020, state-owned listed firms' businesses were hampered, causing a fall in their revenue and profit. When the restrictions over Covid-19 were eased and the economy was reopened, businesses started to rebound at the end of 2021. 

Desco profit soars, Power Grid declines

Dhaka Electric Supply Company or Desco's operating revenue grew by 18% to Tk175 crore, while its profit jumped by 686% to Tk14.86 crore in the second quarter of this fiscal compared to the same time of the previous one.

In the October-December period of this fiscal, the company's earnings per share (EPS) rose to Tk0.37 from Tk0.05 in the same period of FY21.

Desco said its EPS has increased due to an increase in electricity sales revenue, other operating revenues, interest and miscellaneous income.

Power Grid Company of Bangladesh, which transmits electricity throughout the country, posted a 6% growth in revenue to Tk518.69 crore while its profit declined by 26% to Tk66.33 crore.

Despite the growth in revenue and gross profit, the company's net profit declined due to a 33% or Tk135.45 crore increase in its financing expenses.

Meghna Petroleum, Padma Oil profits increase

Padma Oil Company and Meghna Petroleum – two fuel distributors under the Bangladesh Petroleum Corporation (BPC) – reported jumps in profit.

Meghna Petroleum's total income declined slightly but it reported a 14% increase in profit to Tk70.41 crore due to a decline in operating expenses. Its non-operating income increased by 12%.

Padma Oil's net profit increased by 23% to Tk58.19 crore and its EPS increased to Tk5.92.

The company said its EPS increased due to an increase in operating income against product handling and in sales volume. 

Meanwhile, Eastern Lubricants Blenders Ltd revenue declined by 85% to Tk59.58 lakh, and profit after tax by 58% to Tk12.14 lakh during the second quarter of FY22, compared to the previous year.

Its non-operating income declined by 16% to Tk45.44 lakh.

Telecommunication services provider Bangladesh Submarine Cable Company saw a 36% jump in revenue to Tk107.41 crore and a 54% jump in profit to Tk59.95 crore.

Its EPS rose to Tk3.33 in the second quarter of FY22, from Tk2.16 in the same period of the previous fiscal. 

The company said its EPS has increased due to the increase in revenue. Besides, there were no significant additional expenses against the increased revenue.

The Investment Corporation of Bangladesh (ICB) posted a 166% rise in operating income to Tk339.57 crore, while its profit increased by 163% to Tk83.29 crore.

The company said its EPS rose to Tk1.03 due to an increase in capital gain and a decrease in interest expenses. 

Six firms continue posting a loss

Six state-owned firms in the sugar, glass, electric, and engineering sectors have incurred losses as they failed to compete with the private companies.

Zeal Bangla Sugar Mills and Shyampur Sugar Mills, which were once profitable firms, are now incurring losses as they failed to minimise administrative costs against income for many years.

In the October-December period of the current fiscal, Zeal Bangla's loss per share rose to Tk37.08 from Tk36.86 in the same period of FY21.

Meanwhile, Shyampur Sugar Mills' loss per share has decreased from Tk25.15 to Tk22.

Usmania Glass Sheet Factory's loss per share decreased from Tk1.43 to Tk0.6 by reducing operating costs.

Eastern Cables, Renwick Jajneswar, and Atlas Bangladesh's loss per share declined by 61%, 53%, and 39% respectively.

The loss per share of Eastern Cables stood at Tk0.8, Renwick Jajneswar Tk3.85, and Atlas Bangladesh Tk0.57.

National Tubes – a concern of Bangladesh Steel And Engineering Corporation – has returned to profit despite a drop in its revenue in the second quarter of FY22, compared to the same time of the previous fiscal. 

During the October-December period of this fiscal, its net sales declined by 6% to Tk7.34 crore while its profit rose to Tk55.38 lakh. In the same period of the previous fiscal year, it had incurred a loss of Tk40.29 lakh.