Shipping Corporation’s profit rises 10pc in Q3

Bangladesh Shipping Corporation (BSC) gained a 10 per cent year-on-year growth in profit in the third quarter through March of FY24.
Despite a rise in finance costs, the company was able to secure a higher profit as the amount of its deferred tax paid in Q3, FY24 declined significantly compared to the same quarter of the previous fiscal year.
A senior BSC official said the company had experienced a 23 per cent year-on-year jump in finance costs in the third quarter of FY24.
Finance costs rose as the interest on foreign debts paid to the government increased significantly due to the currency devaluation.
Preferring anonymity, the BSC official said the company paid interest at a rate of 5 per cent in Q3, FY24, up from 3 per cent paid in the same quarter of the previous fiscal year.
On the other hand, the company experienced a 0.84 per cent year-on-year growth in revenue in the quarter to March this year.
Despite the nominal revenue growth and a significant rise in the finance cost, the company enjoyed a 10 per cent year-on-year growth in profit in the third quarter of FY24 because of a reduced deferred tax.
The BSC, however, is yet to disclose its financial statements for the latest quarter. The company official was unable to say how much the deferred tax was.
In the nine months through March, the company's profit declined more than 11 per cent, compared to the same period of the previous fiscal year. In this case, higher finance cost was the main reason.
Moreover, four ships remained idle for at least 15 days for the purpose of repairing after they had served for a period of five years. The repairing cost was around Tk 40 million per ship.
The company is expecting to experience a profit growth in FY24, driven by a better business performance in the fourth quarter (April-June), the official added.
Meanwhile, the BSC's stock fell to Tk 105.6 per share on April 29 from Tk 132.6 per share on February 12. It closed at Tk 115.50 per share on Sunday.

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