Aamra Networks posted a 25 per cent year-on-year growth in profit to Tk 78.4 million for January-March this year, supported by revenue growth coupled with effective cost control measures.
Accordingly, the company's earnings per share (EPS) increased to Tk 1.26 for the period from Tk 1.01 for the same quarter a year earlier, according to a stock exchange filing on Wednesday.
"Profit has increased as revenue improved, owing to more profitable IT support and software services as well as internet sales," said the company in its earnings note.
Its revenue went up by a mere 1.34 per cent year-on-year to Tk 303 million in the January-March quarter, while the cost of services was reduced by more than 7 per cent to Tk 164 million in the quarter.
Efficient cost control measures cut the cost of services, helping the company's bottom-line growth, said the company.
The major sources of revenue of the company include internet and Wi-Fi bandwidth & equipment sales, IT support & software and EPZ project.
Revenue earnings from the IT support segment jumped 40 per cent, while the Internet and Wi-Fi bandwidth sales rose 2 per cent and revenue from EPZ project dropped 20 per cent.
Aamra Networks' profit was up 12 per cent to Tk 225 million for the nine months through March, compared to the same period of the previous year. During the period, revenue rose more than 8 per cent year-on-year to Tk 989 million.
Following the latest earnings disclosure, its stock price rose 3.70 per cent to Tk 39.30 on Wednesday although the overall market closed in the red.
Industry insiders said the demand for Internet, software and IT-enabled services was growing in the country as many local business entities were adopting automation.
To build a smart Bangladesh, the government has also been emphasising Internet connection and IT services all over the country by setting up a Hi-Tech Park.
Having started commercial operation in 2001, Aamra Networks is one of the first private sector licensed Internet Service Providers (ISP) in Bangladesh.
Its nine months' net operating cash flow per share, a measure of a company's ability to generate cash from its operations, jumped to Tk 4.62 through March from Tk 2.61 a year ago.
The company explained that the net operating cash flow jumped as the cash received from customers and others increased during the period compared to supplier payments, income tax paid and finance costs.
The net asset value, which refers to the excess of total assets over total liabilities, reached Tk 40.65 per share as of March this year, up from Tk 38.11 until June 2023.
Rights shares subscription
On February 14, the Bangladesh Securities and Exchange Commission (BSEC) accepted Aamra Networks' proposal to raise nearly Tk 930 million through rights shares.
The rights shares issue is an offer of new shares by a company to its existing shareholders in proportion to the shares they already own and usually at a discount to the market price within a specified time.
Rights proceeds will be utilised for repaying bank loans, upgrading network systems, and network coverage expansion.
One rights share against existing two shares (1R:2) has been offered at an issue price of Tk 30 each, including a premium of Tk 20 per share.
Rights shares subscription, which started on March 24, is going to end today (Thursday).
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