Retail demand for construction rods helped BSRM Group’s two listed companies deliver sharp profit growth in the July–September quarter, cushioning the impact of subdued government and commercial construction activity.
BSRM Steels more than doubled its net profit, while Bangladesh Steel Re-Rolling Mills (BSRM Ltd) posted a 64 per cent increase, according to their unaudited first-quarter financial statements approved by the boards on Wednesday.
Individual homebuilders continued buying rods despite the slowdown in larger construction projects, with retail buyers accounting for 80–85 per cent of BSRM’s steel sales through dealers, Shekhar Ranjan Kar, the group’s Head of Finance & Accounts and Company Secretary, told TIMES.
“Due to the slowdown in government and commercial construction, overall steel demand in the country remained subdued over the quarter. However, individual homebuilders are still buying construction rods,” he said.
Higher sales and lower finance costs helped drive the profit growth, Kar added.
BSRM Steels reported net profit after tax of Tk210.41 crore for the quarter, up 115.5 per cent from Tk97.62 crore a year earlier. Its earnings per share (EPS) rose to Tk5.60 from Tk2.60.
Revenue increased 12.6 per cent to Tk2,969.34 crore from Tk2,637.57 crore. Net operating cash flow per share (NOCFPS) also improved to Tk7.92 from Tk5.24.
BSRM Ltd’s consolidated net profit rose 63.8 per cent to Tk203.08 crore from Tk123.97 crore, while EPS increased to Tk6.80 from Tk4.15.
Its consolidated revenue to Tk2,485.79 crore, up from Tk2,345.03 crore.
The companies reported different cash-flow trends.
BSRM Ltd’s NOCFPS fell to Tk4.56 from Tk8.30, while its consolidated figure declined to Tk4.93 from Tk6.93. BSRM Steels, by contrast, recorded an increase in NOCFPS.
Net asset value per share (NAVPS) rose at both companies. BSRM Ltd’s NAVPS increased to Tk192.59 on 30 September from Tk186.06 on 30 June, while BSRM Steels’ rose to Tk111.25 from Tk106.36.
BSRM Ltd shares closed 1.56 per cent higher at Tk97.40 apiece on the Dhaka Stock Exchange on Thursday, while BSRM Steels closed 2.84 per cent higher at Tk97.7.
