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BBS Cables posts steady revenue growth in 5 yrs

Its earnings per share soars 55pc in July-Dec

FE Report | March 10, 2019 00:00:00

BBS Cables witnessed a steady growth in revenue earning, net profit and earnings per share in last five consecutive years through 'effective cost management.

For the year ended on June 30, 2018, the company has attained the highest revenue growth to Tk 6,588 million, registering an increase of more than 87 per cent over the previous year.

The company's net profit after tax also jumped 169 per cent to Tk 1114 million in FY 2018, from Tk 413 million in the previous year.

The company's total asset has increased nearly 16 per cent year-on-year in the FY 2017-18 due to addition of new fixed assets, according to company's latest annual report.

"This increase was driven by sales volume growth, smart pricing, increase market shares, effective cost management and productivity initiatives across the company," said Abu Noman Howlader, managing director of the company, in its latest annual report.

Recently, the company has enhanced its production capacity 37 per cent by installing new machinery which was purchased through initial public offering fund.

The company started commercial operation from the new machinery on January 12, 2019.

The cable manufacturer raised Tk 200 million from the public by issuing 20 million ordinary shares using the fixed price method in May 2017 for acquisition of plant and machinery, partial repayment of bank loans and IPO expenses.

After installing the new machinery, the company's annual production increased by 37 per cent (6,100 MT) to 22,700 MT annually and the value of which is about Tk 12 billion.

Now, the BBS Cables is the country's second largest electrical cable manufacturing company, according to the annual report.

The company, which was listed on the Dhaka bourse in 2017, disbursed 10 per cent cash and 15 per cent stock dividend for the year ended on June 30, 2018.

The company has also reported earnings per share (EPS) of Tk 8.08, net asset value (NAV) per share of Tk 24.31 and net operating cash flow per share (NOCFPS) of Tk 3.03 for the year ended on June 30,

2018 as against Tk 3.44 (re-stated), Tk 19.17 and Tk 5.33 respectively for the same period of the previous year.

In six months for July-December 2018, the company's earnings per share (EPS) stood at Tk 5.48 as against Tk 3.53 for July-December 2017.

The net operating cash flow per share (NOCFPS) was Tk 4.33 for July-December 2018 as against Tk 3.15 for July-December 2017.

The net asset value (NAV) per share was Tk 25.76 as on December 31, 2018 and Tk 24.31 as on June 30, 2018.

The company's paid-up capital is Tk 1.58 billion and authorised capital is Tk 3.0 billion, while the total number of securities is 158.70 million.

The sponsor-directors own 33.33 per cent stake in the company, while institutional investors own 13.39 per cent, foreign investors 1.54 per cent and the general public 51.74 per cent as on February 28, 2019, the DSE data shows.

Each share of the company closed at Tk 99.50 on Thursday.

The company's share of the company traded between Tk 70.10 and Tk 139.20 in the last one year on the Dhaka Stock Exchange.

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