GPH Ispat Ltd, one of the leading steel makers in Bangladesh, reported a massive drop in earnings during the financial year 2022-23 due to the spiral in raw materials prices and higher cost of the dollar in foreign currency transactions.

The Chattogram-based company recorded a Tk 26.76 crore in net profit in the year that ended on June 30, down 82 percent from Tk 149.42 crore a year ago, according to the price-sensitive disclosure.

GPH published its earnings figures for its shareholders after the board meeting on Saturday.

The FY23 profit was the lowest at least in the last six years of operation of the company, according to information available on the Dhaka Stock Exchange (DSE) website.

The earnings per share (EPS) of GPH Ispat fell to Tk 0.58 in FY23 from Tk 3.42 a year ago, despite recording higher net sales and operating profit.

GPH Ispat blamed a significant increase in raw materials prices in the international market followed by an exchange rate loss in foreign currency transactions for the lower EPS.

GPH Ispat is the second listed steel maker in Bangladesh that reported a drop in its earnings.

Earlier this month, BSRM Ltd, the largest steelmaker in the country, said its profits fell in FY23 even though it recorded 44 percent higher sales to take the turnover to over Tk 11,500 crore, the highest so far.

GPH Ispat's board recommended a slightly lower dividend for FY23: a 5 percent cash dividend only for general shareholders other than sponsors and directors, and a 5 percent stock dividend.

GPH Ispat said its board recommended bonus shares with a view to utilising the retained amount as the capital for the installation of a reheating furnace under the company's BMRE (Balancing, Modernisation, Rehabilitation and Expansion) project.

Shares of GPH Ispat remained unchanged at Tk 44.8 as of 2.15 pm on the DSE.