BSRM Steel’s Q1 profit grows 86%

BSRM Steels, one of the leading steel manufacturing companies in the country, saw its profit soar significantly in the July-September quarter, driven by strong sales and reduced financial costs. 

Its profit grew an impressive 86 percent year-on-year in the first quarter, reaching Tk 85.02 crore.

Buoyed by the growth, BSRM's shares rallied 5.19 percent to Tk 56.8 at the Dhaka Stock Exchange today. 

The company's earnings per share (EPS) climbed to Tk 2.26, up from Tk 1.21 in the same period last year, according to its unaudited financial statements.

This rise in net profit and EPS reflects a strengthened gross profit margin, BSRM Steels said. 

The company also recorded a solid improvement in net operating cash flow per share (NOCFPS), which reached Tk 5.13 compared to Tk 4.86 in the previous year. 

BSRM cited increased sales volumes, efficient collection from receivables, and a decrease in finance costs behind the NOCFPS growth.

Finance costs dropped significantly by 45.34 percent to Tk 52 crore, which the steel manufacturer attributed to favourable foreign currency conditions.

While BSRM had initially recorded liabilities at higher market rates, settlements were made at more favourable rates, reducing foreign currency losses drastically to Tk 4.3 crore from Tk 61.5 crore in the prior period.