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Beximco tops turnover, gainers' lists on DSE

Its EPS sees big jump

FE REPORT | October 25, 2021 00:00:00

Bangladesh Export Import Company (Beximco) topped the turnover and gainers' lists on Sunday, thanks to a big jump in its earnings per share (EPS) for the last fiscal year.

Some Tk 3.42 billion worth of the company's shares were traded on the Dhaka Stock Exchange (DSE), accounting for 23 per cent of the day's total turnover.

Its share price rose 7.50 per cent to close at Tk 167.70 each, making its way to the top of the gainers' chart.

The news of a jump in Beximco's EPS for the year ended on June 30, 2021, led to the buoyancy in the market, said a stockbroker.

He noted that the Beximco has led the market from the front in the past few months while the news of a big jump in its net profit prompted investors to buy the company's shares.

The company's EPS soared 1,376 per cent to Tk 7.53 for the year ended on June 30, 2021, as against Tk 0.51 in the corresponding period of the previous year, according the company's disclosure published on the DSE website on Sunday.

"Exploring new markets and products line in textile, the company executed more orders, and due to Covid-19, old orders were also executed in the current year which impacted its revenue and thus increased its earnings per share," according to the disclosure.

The Beximco's revenue, which is engaged in power, textile, holdings, IT and healthcare business, increased by 112 per cent, compared to the last year.

Beximco -- the flagship company of Beximco Group -- has also recommended a 35 per cent cash dividend for its shareholders for the year ended on June 30, 2021.

The company has also reported net asset value (NAV) per share of Tk 78.28 and net operating cash flow per share (NOCFPS) of negative Tk 2.03 for the year ended on June 30, 2021 as against Tk 69.33 and Tk 36.01 respectively for the same period of the previous year.

"To complete upcoming sales/orders, we purchased significant amount of inventories (50 per cent increase from last year) and advance given for assets and other purchase (shown under advance, deposit and prepayment) which are the main significant area for decreasing NOCFPS".

The board of directors has also decided to increase the authorised capital of the company from Tk 10 billion to Tk 30 billion by amending relevant Articles of Association of the company, subject to the approval of the shareholders in the 48th annual general meeting to be held on December 23, as special business.

Meanwhile, Beximco is in the process of raising Tk 30 billion by issuing Sukuk Bond and the proceeds will be used for implementing the solar projects of Teesta Solar and Korotoa Solar to produce electricity from renewable energy and transmit it into the national grid.

Beximco, listed on the DSE in 1989, disbursed 5.0 per cent cash dividend each for the last two years -- 2020 and 2019.

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