BAT Bangladesh to invest Tk11.56cr to set up rooftop solar panel

British American Tobacco Bangladesh Company (BATBC), a multinational cigarette manufacturer, has decided to set up a rooftop solar panel with a capital investment of Tk11.56 crore along with its relevant infrastructure.

The 1.5MW panel will be set in its Savar factory, according to a disclosure published on the stock exchange on Thursday (26 September). 

The disclosure reads, the investment in solar panel system would reduce carbon emission by 944 tonnes per year and will ensure electricity cost savings of Tk5.10 crore per year for 20 years.

The investment will be funded from internal sources and bank financing based on the cash flow of the company, states the company.

Earlier, BAT Bangladesh had taken another decision for capital investment of Tk33.21 crore for rooftop solar panel (3.2 MW) and stem pre-sizer unit along with its relevant infrastructure in the Fibex plant. 

In its 26 October disclosure, the company said the investment in solar panel system would achieve a 50% reduction in carbon dioxide emissions as well as to get into the journey of 50% renewable electricity usage.

The investment would be funded from internal sources and bank financing based on the cash flow of the company, it states. 

Half-yearly financials

According to its half-yearly financials, BAT Bangladesh earned a revenue of Tk22,339 crore from cigarette sales during January to June of 2024, a 5% increase compared to the same period last year.

During the period, the multinational tobacco product manufacturer sold 3,823 crore sticks of cigarettes, which was 2.22% lower than the previous year.

At the end of the first half of 2024, it reported a profit of Tk925 crore, which was 2.56% lower than a year ago.

In the price-sensitive statement filed on its website, the multinational company said profit decreased from the same period last year driven by lower leaf export.

Meanwhile, during the April-June quarter of this year, its revenue witnessed a 14% year-on-year increase to Tk12,932 crore and net profit rose by 3.85% to Tk512 crore.

In 2023, the company had paid a 100% cash dividend for its shareholders marking the lowest rate in over a decade.

It reported a profit of Tk1,788 crore in 2023, a nominal increase from Tk1,787 crore in 2022.

The cigarette manufacturer, which was listed on the bourses in 1977, operates factories in Dhaka and Savar, along with a green leaf threshing plant in Kushtia and a green leaf re-drying plant in Manikganj.

Over the past three years, the company has invested more than Tk1,200 crore in various phases to enhance its production capacity and meet the growing demand.

Its share closed at Tk397 each on Thursday on the Dhaka Stock Exchange, marking a 0.92% decrease from the previous trading session.