Mir Akhter posts moderate profit growth
In a stock exchange filing on Monday, the company said its profit in the July-December period was Tk21.5 crore, which was Tk20.7 crore over the same period a year ago
Mir Akhter Hossain Limited, one of the largest construction and engineering firms of the country, which is waiting for its stock market debut on Tuesday, has posted a moderate profit growth in the first half of the current fiscal year.
"We recovered from the lockdown impacts on the July-September quarter. Since late September, the pace of construction activities began to increase and over the October-December quarter it was better," said Parymal Kumer Sarker, chief financial officer of the company.
In a stock exchange filing on Monday, the company said its profit in the July-December period was Tk21.5 crore, which was Tk20.7 crore over the same period a year ago.
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However, in the October-December quarter its profit after taxes stood at Tk11.07 crore, which was Tk11.45 crore in the same period of 2019.
"Our quarter on quarter revenue and profit rose over the last nine months of 2020, and of course we are expecting a better state of the economy and our industry in the months to come as the vaccine is already here," added Parymal Kumer.
On 31 December, the net asset value per share stood at Tk43.98, according to the company filing, while its earnings per share for the first half stood at Tk1.78 based on the post-listing number of shares.
The company's initial public offer (IPO) subscription ended on 30 December.
Under the book building method, it sold each primary shares to institutional investors at Tk60 and to the public at Tk54.
Of the Tk125 crore IPO fund, the company would spend Tk50.3 crore to purchase heavy equipment, Tk12.7 crore for an aggregate processing plant, Tk4.67 crore for an asphalt plant, Tk3.74 crore for a concrete batching plant, Tk10.08 crore to construct a warehouse and workshop for equipment maintenance and refurbishment.
The construction firm would also use Tk40 crore to repay its bank loans.
IDLC Investments is the issue manager of the company.
In fiscal year 2018-19, Mir Akhter's total revenue was Tk426.70 crore and the net profit was Tk63.24 crore.
According to the audited financial statements of Mir Akhter, as of 30 June 2019, the company's weighted average earnings per share in the last five years was Tk6.21, and net asset value per share was Tk34.71, including re-evaluated reserves.
Established in 1968, Mir Akhter Hossain implements infrastructure development projects across the country.
The projects include the construction of roads, bridges, highways, railroads, five-star hotels, power plants, and factories.
Mir Akhter is currently implementing 34 development projects.
