GPH Ispat, one of the leading steel manufacturers in the country, posted Tk 85.64 crore in net profit for the fiscal year ending on June 30 this year. 

The profit is 205 percent higher than the previous year .

The improved profitability is largely attributed to the company's effective management of foreign currency exchange losses, GPH said in its disclosure posted on the website of the Dhaka Stock Exchange (DSE) today.

The company's earnings per share was Tk 1.77 in FY24, a significant increase from Tk 0.58 the previous year.

"In FY24, GPH Ispat's total foreign currency losses amounted to Tk 79.31 crore, down from Tk 232.5 crore in FY23," said the steel manufacturer. 

The substantial reduction in foreign currency losses led to a decrease in finance costs by Tk 51.54 crore and a drop in current tax expenses by Tk 6.66 crore for GPH, boosting net profit by Tk 59.01 crore year-on-year.

The company pointed out that while operating profit remained steady compared to last year, its strategic financial management was pivotal in boosting earnings.

Additionally, the company reported net operating cash flow per share (NOCFPS) of Tk 9.89, compared to Tk 2.94 in FY2023.

"Payment against suppliers and other obligations was less than customer collections, resulting in positive NOCFPS," said GPH. 

The board of GPH recommended a 10 percent cash dividend for FY24, the highest amount since 2021.

In another disclosure on the DSE, GPH Ispat has announced plans to issue non-convertible, cumulative, redeemable, and non-participative preference shares amounting to Tk 500 crore, aimed at refinancing existing loans, pending approval from the Bangladesh Securities and Exchange Commission.

Shares of GPH Ispat surged 7.44 percent to Tk 26 on the DSE today.

The company, which started commercial production in 2008, remains one of Bangladesh's leading integrated steel manufacturers, focusing on MS Billet and MS Rod production.