3 cos of BBS Group see income wiped out

FY23 seems to have gone very badly for the BBS Group as its two companies experienced a sharp decline in profit while another company suffered a huge loss.
Of the companies, the profit of BBS Cables and Nahee Aluminum Composite Panel nosedived 88 per cent and 72 per cent respectively year-on-year while Bangladesh Building Systems incurred a loss of Tk 54.69 million in FY23, according to stock exchange filings on Wednesday.
Bangladesh Building System
Bangladesh Building System, a pre-fabricated steel structure manufacturer in the country, went into the red due to a decrease in revenue and non-operating income as well as price hike of raw materials.
The company has reported a loss of Tk 165.16 million for FY23, as against a profit of Tk 268.59 million in the year before.
It, however, saw a marginal rise in NAV per share to Tk 16.70 for FY23 from Tk 15.70 for FY22 due to an increase in the fair value reserve on financial assets.
Its NOCFPS also advanced to Tk 1.65 for FY23 from Tk 0.34 for FY22 due to a decrease in the creditors' payment.
The principal activity of the company is to manufacture pre-engineered steel, especially for the industrial sector.
Due to the huge loss, the board recommended no dividend for FY23. It distributed 3.50 per cent cash dividend to shareholders for FY22.
Meanwhile, the company's share price remained stuck at the floor price of Tk 21.60 since November 13, 2022.
BBS Cables
BBS Cables, the second-largest cable manufacturer in the country, said profit had tumbled due to higher production costs.
An increase in the cost of goods sold due to the currency devaluation played a role behind the sharp decline in profit in FY23, said the company.
This cable manufacturer reported a profit of Tk 97.44 million for FY23, down from Tk 807.66 million for the year before.
Subsequently, the company's earnings per share (EPS) plunged to Tk 0.46 from Tk 3.81 reported for the previous fiscal year.
The shrinking profit compelled the company to cut dividend sharply to 2 per cent cash for FY23 from 8 per cent cash disbursed for FY22.
Apart from profits, the net asset value (NAV) also dipped in FY23, compared to the previous fiscal year. The NAV per share was down to Tk 32.99 for FY23 from Tk 33.29 for FY22.
The company, however, saw the net operating cash flow per share rise to Tk 2.49 for FY23 from Tk 1.58 a year ago.
The stock has remained stuck at Tk 49.90 since November 22 last year.
Nahee Aluminum Composite Panel
The manufacturer reported a profit of Tk 54.69 million for FY23, a 72 per cent plunge from the previous year.
Its EPS dropped to Tk 0.80 for FY23 from Tk 2.88 for the previous year.
Speaking on condition of anonymity, an official said the company manufactured a luxury product and that sales declined in FY23 as inflation had squeezed purchasing power of general people.
He is, however, hopeful of a rebound in the ongoing fiscal year rising on an ease of economic tension.
The company also experienced a decline in NAV per share and NOCFPS.
Due to the slash in profit, the company recommended only 2.5 per cent cash dividend for FY23, reduced from 10 per cent cash paid for the year before.
The company's share price remained stuck at the floor price of Tk 65.30 since October 16 last year.

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