Quasem Industries to pay the lowest dividend since FY10
Quasem Industries, the country's largest dry cell battery manufacturer, has declared a 1.5% cash dividend for the fiscal 2021-22 – the lowest since the fiscal 2009-2010 – as its dry cell business dries up day by day.
As per the data available from stock exchanges, the company used to pay 5-20% cash and stock dividends to its shareholders.
In FY21, Quasem Industries paid a 10% stock dividend as it opted to spend Tk9 crore of the profit on its ongoing expansion project.
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Owing to technological advancement, its core business dry cell battery production is drying up gradually.
In FY22, its profit fell by 61% compared to the previous fiscal year for lower sales.
To survive the shock, the publicly listed company has diversified its business to consumer products such as chips, bottled water, aerosol, shaving foam and body spray.
As part of its business diversification plan, Quasem Industries has also established an artificial quartz products manufacturing unit with 100% export potential in collaboration with Sunstone International LLC, US as the first company in Bangladesh.
The artificial quartz production started in June this year.
In February 2020, the company decided to establish the artificial quartz product manufacturing unit at a cost of Tk91.99 crore.
Its profit after tax was projected to be Tk17.45 crore on completion of the project.
FY22 financials
Quasem Industries reported a profit of Tk3.56 crore, 61% lower than Tk9.16 crore in the previous fiscal year.
Its earnings per share (EPS) stood at Tk0.49, which was Tk1.26 in FY21.
In the fiscal 2020-21, its profit increased by 101% riding on government compensation for acquiring some land in Tangail.
The company will hold its annual general meeting (AGM) on 8 December and to identify its shareholders, 15 November has been fixed as the record date.
Its auditor said in a qualified opinion, as per Bangladesh Securities and Exchange (BSEC) notification, no issuer company shall, except with the approval of the general meeting of its shareholders with a majority vote, enter into any contract in value based on fair price or otherwise; for sale or purchase of goods, materials or services amounting 10% or above of the total revenue.
The auditor said it observed related party service income of more than 10% of the reported but no such approval was obtained.
The company said its board has also taken decisions for future development programmes to build and operate a modern hospital in Dhaka city, and establish a new head office and distribution hub in an own commercial tower.
