BSRM's strong comeback in Q4 relied on record revenue

Bangladesh Steel Re-Rolling Mills (BSRM) came back strongly in the final quarter of FY23, as the global market for raw materials cooled down.
The steelmaker gained a profit of Tk 2.42 billion in the fourth quarter, riding on record revenue and increased selling prices of rod.
The largest steel manufacturer reported a 44 per cent year-on-year increase in revenue to Tk 115 billion, the highest ever, for FY23, thanks to a hike in MS rod prices.
The MS rod, the key construction material, became 15 per cent costlier in FY23, compared to the previous fiscal year in the wholesale market.
The company's consolidated net profit, however, dropped more than 5 per cent year-on-year to Tk 2.92 billion in FY23.
The Chattogram-based steel manufacturer suffered a loss of Tk 1.64 billion in the first quarter to September last year due to the foreign currency transaction loss.
The global situation as well as domestic economic condition was volatile during the period. There was a shortage in power supply too, leading to higher production costs.
The BSRM managed to return to profit in the second quarter of FY23 ended in December last year, riding on increased selling prices. It reported a profit of Tk 543 million but that could not offset the first quarter loss entirely.
In January-March this year, the company earned Tk 1.60 billion on the back of higher revenue earnings.
Presently, there is no disruption of power and gas supply and raw material prices eased a bit in the global market, said Shekhar Ranjan Kar, head of finance and accounts of the BSRM Group.
The company still faces hurdles in opening LCs for raw material imports.
Despite the challenges, the company is trying to keep up growth, Mr Kar added.
As the dollar crisis persists, businesses in Bangladesh are increasingly finding it difficult to open letters of credit (LCs) since banks cannot supply dollars needed to finance imports.
The US dollar has appreciated more than 25 per cent against the taka since February last year.
The leading steelmaker provided high grade rod to mega projects, including Padma Bridge, Rooppur Nuclear Power Plant, Bangabandhu Tunnel, Hatirjheel Project, Mayor Hanif Flyover, Shah Amanat Bridge and Dhaka Elevated Expressway, according to its website.
Due to the drop in profit, the board has declared 25 per cent cash dividend for FY23, down from 35 per cent a year ago.
The company will hold an annual general meeting on December 28. The record date is November 8.
Despite the highest annual revenue, the stock of BSRM did not move up from the floor on Sunday. It has been languishing at the floor price of Tk 90 each share since October last year.
BSRM Steels
BSRM Steels, a concern of Bangladesh Steel Re-Rolling Mills, also reported a 9.14 per cent drop in profit year-on-year to Tk 2.98 billion for FY23.
The board declared 25 per cent cash dividend for FY23, down from 30 per cent for the year before.
The company will hold an annual general meeting on December 28. The record date is November 8.

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