BSRM's two entities’ sales drop, but profit surges 574%

Profits of two entities of BSRM group, the largest steel maker in the country, surged in the three quarters of the current financial year though sales of both entities fell. 

Despite 8 percent year-on-year drop in earnings in the January-March period, BSRM's profit grew 574 percent to Tk 333 crore in the July-March period ending in June thanks to reduction in finance cost. 

The steel company's revenue dropped 24 percent to Tk 6,316 crore  from Tk 8,291 crore a year ago.

In the January-March quarter, its sales slumped 41 percent year-on-year. according to the price sensitive disclosure by the company.

Similarly, BSRM Steels Ltd recorded decline in its sales in three quarters to the end of March of 2023-24 financial year. 

It, however, said its profit soared 11 percent year-on-year to Tk 124 crore in the January-March quarter. 

And the third quarter earnings took the total profit of BSRM Steels to Tk 279 crore, up 130 percent from the same period a year ago, said the company in its price sensitive information posted on its website after the board meeting.

"Our finance cost has declined while foreign currency availability for import of raw materials has increased. Besides, prices of raw materials have fallen in the international market," said Shekhar Ranjan Kar, company secretary of BSRM.

Both the companies, listed with the stock exchanges, posted spike in their earnings per share (EPS) too.

During July-March period of 2024, BSRM Ltd's EPS skyrocketed to Tk 11.17 from 1.66 the same period a year ago. 

BSRM Steels said its EPS rose to Tk 7.43 in nine months to March 2024 from Tk 3.22 in July-March period a year ago.