Strong dollar eats up GPH Ispat’s profit
GPH Ispat Limited — a listed steel manufacturer — has seen an 18% decline in profits for fiscal 2021-22, owing to an increase in raw material prices and deepening exchange losses from foreign currency transactions.
A foreign exchange gain or loss occurs when a company buys and/or sells goods and services in a foreign currency, and that currency fluctuates relative to the firm's home currency.
In fiscal year 2020-21, the company posted a record 454% growth in profits, thanks to its launching of new products, capacity expansion, and ramping up exports to China even amid the pandemic.
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According to the company's stock exchange filing on Monday, its profit fell due to higher shipping and freight charges as well as prices of all imported raw materials, which are the after-effects of Covid-19 and the Russia-Ukraine war.
In FY22, its consolidated earnings per share (EPS) declined to Tk3.42, which was Tk4.18 in FY21.
Owing to lower profits, the company has recommended only 5.5% cash and 5.5% stock dividends for FY22, which was 20% cash and 10% stock dividends in the previous fiscal.
The annual general meeting (AGM) will be held on 28 December on a digital platform, and to identify shareholders of the company, the record date has been set for 23 November.
GPH Ispat manufactures and trades MS Billets and MS Rods.
It was incorporated in 2006 and was listed on the stock exchanges in 2012.
