GPH Ispat Q1 profit down 64pc, driven by shrinking demand

GPH Ispat earned a profit of Tk 24.19 million in the first quarter through September this year, which is 64 per cent lower than the same period of the previous year.
The company says it has been facing shrinking demand. Earlier, it had reported a loss for the first time - Tk 246.78 million in FY25 - in 11 years since its listing in FY12.
The managing director of GPH Ispat, Mohammed Jahangir Alam, told The FE earlier that after the regime change in 2024, both private and public expansion projects were halted. "Many contractors on public projects left the worksites. The government went for retendering to restart those projects.
"Besides public projects, private projects also slowed down. The expansion has been reduced to only 35 to 40 per cent of its potential, which has affected steel demand. The demand fell so low that we were unable to recover our overhead costs."
However, listed firms of the BSRM Group have been reporting profits.
GPH Ispat said its profit had shrunk due to higher production costs, increased other operating expenses, and higher bank interest rates.
Its cash-generating ability increased in the quarter despite the year-on-year decline in profit, thanks to delayed payments.
Cash flow improved to Tk 1.74 per share in July-September 2025 from Tk 1.82 negative in the same quarter last year.
According to the company, the net operating cash flow per share (NOCFPS) turned positive, driven by lower cash payments to suppliers, operating expenses, and other costs together compared to collections from customers.
Meanwhile, the share price of the company went down 0.59 per cent to Tk 16.90 per share on Thursday on the Dhaka bourse.
The directors' holding in the company has meanwhile been reduced by nearly 8 per cent to 41.59 per cent since June last year.

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