GPH Ispat’s profit falls 18% to Tk 149.39 crore

GPH Ispat Ltd's profit fell more than 18 per cent year-on-year to Tk 149.39 crore in the financial year that ended on June 30.

The steel manufacturer raked in Tk 182.59 crore in profit in 2020-21.

Thus, the company reported earnings per share of Tk 3.42 for 2021-22, which was Tk 4.18 in 2020-21.

The EPS decreased due to a significant increase in the exchange loss in foreign currency transactions, said GPH Ispat in a filing on the Dhaka Stock Exchange (DSE) today.

"On the other hand, the price of all imported raw materials, international shipping, and freight charge increased due to dull economic conditions after the effect of Covid-19 and the Russia-Ukraine war."

The net asset value per share slipped to Tk 28.79 in 2021-22 from Tk 29.86 in 2020-21, while the net operating cash flow per share widened to a negative Tk 7.15 from a negative Tk 4.05 during the period.

The net operating cash flow per share decreased because of an increase in cash payments to suppliers, operating expenses, administrative expenses, and selling and distribution expenses for the price hike in international and local markets, said the filing. 

The board of directors has recommended a 5.50 per cent cash and a 5.50 per cent stock dividend for the last financial year.

The bonus shares have been recommended with a view to utilising the retained amount as capital for the company's manufacturing facility expansion, added the filing.

Shares of GPH Ispat closed unchanged at Tk 47.30 on the DSE today.