Despite eight-year-high production, profit of Maddhapara Granite Mining Company Limited (MGMCL) dropped as half of the quarried igneous rock remained unsold in the last fiscal year (FY), according to the company's annual report.

Consequently, MGMCL, a unit of Petrobangla, recorded a 5 percent year-on-year loss in profit in fiscal 2022-23.

Profit stood at Tk 17.31 crore in FY23 compared to Tk 18.25 crore a year ago, according to the company's audited financial statement.

MGMCL's revenue fell nearly 10 percent to Tk 214.13 crore in FY23 from Tk 237.46 crore in fiscal 2021-22.

According to the report, MGMCL, which has a mine located in Parbatipur upazila of Dinajpur, sold around 5.71 lakh tonnes of the igneous rock.

Although production remained suspended for the first three months of the fiscal year, Germania Trest Consortium, a company contracted by MGMCL, produced 10.63 lakh tonnes of granite in FY23.

It represented the company's highest output since 2015, according to the annual report, but it sold only half of its produced granite, amounting to 5.71 lakh tonnes in FY23.

MGMCL failed to fetch a higher profit as sales dropped for various reasons, but largely because it hiked the sales price of rocks.

MGMCL makes sales via different channels, including through 94 appointed dealers.

However, sales slowed to a six-year low and the 94 dealers collectively sold only 2.56 lakhs tonnes in FY23 compared to 9.86 lakhs tonnes the year prior.

Government and non-government organisations -- including the Roads and Highways Department (RHD), Bridge Division, Public Works Department (PWD), Water Development Board (WDB), Bangladesh Railways, different cement factories, and other private companies -- also cut back on purchases in the last fiscal year, according to the report.

The Bridge Division, RHD and PWD jointly bought around 50,000 tonnes of the hard rock in FY23, which was 2 lakh tonnes lower than in the prior year.

The WDB purchased only 35,000 tonnes in FY23 compared to 1.51 lakh tonnes the prior year while Bangladesh Railways bought around 30,000 tonnes less.

The company said its quarried rock was more expensive than imports from Bhutan at zero duty and from India through the land ports located at Hili, Sona Masjid, Banglabandha, Sonahat and Burimari.

This is because of the relatively high cost of transporting rocks from Maddhapara's mine in Dinajpur to southern and eastern parts of the nation.

Despite the challenges, the company completed 3,805 metres of roadway and stope development in FY23, the financial statement said.

Regarding future plans, MGMCL said if it developed a new mine, the combined production capacity of the two mines would be 4.95 million tonnes per year, meeting a large portion of domestic demand for the igneous rock.

When contacted, Abu Daud Md Fariduzzaman, managing director of MGMCL, refused to comment.