Coppertech expects 160% growth in sale

Coppertech Industries Limited is expecting to increase sales by 160% to Tk180 crore with its new project which successfully commenced recently.

For the new project the company has installed machines based on new technology on existing factory premises to increase production around 1,200 tons yearly. For this project, the company raised Tk20 crore in fresh capital with an initial public offering (IPO).

Company sources say investors will see the financial outcome of this project in the next quarter.

The company started commercial operations in mid-2014 to manufacture and sell copper bars, rods, strips, wiring, pipes, and copper tubes, mainly used in air coolers, refrigerators, transformers, electrical wiring, plumbing, building construction, and power plants.

Earlier, The Bangladesh Securities and Exchange Commission (BSEC) gave its IPO consent letter to Coppertech Industries on 27 February, 2019. In April that year, the company received applications and subscriptions from investors for primary shares worth Tk20 crore at a face value of Tk10 each.

Crises arose with Coppertech's enlistment at the bourse with the publication of media reports on inconsistencies in its financial reporting with Ahmad and Akhtar Chartered Accountants auditing the company.

Subsequently, Dhaka Stock Exchange (DSE) authorities and the Financial Reporting Council (FRC) took steps to investigate the alleged inconsistencies in Coppertech's financial reporting, but they did not find anything against the company.

In fiscal year 2019-20, the company  paid a 2% cash dividend only as its profits fell 55% due to the novel coronavirus pandemic.

In the first three quarters of the last fiscal year, its revenues grew a nominal 1%, to Tk47.30 crore though net profits rose 56% to Tk4.93 crore.

In the last three months, its share price has jumped 124% to Tk44.50 at the DSE. Responding to a DSE query on 14 June, the company said there was no undisclosed information behind the price hike.