Earnings of both Bangladesh Steel Re-Rolling Mills (BSRM) and BSRM Steels declined significantly for the year ended on June 30, 2020 compared to previous year.
in separate disclosures, the companies have said their earnings declined following less productions and sales amid COVID-19 pandemics and tax burden faced by subsidiaries.
Of the companies, the consolidated earnings per share (EPS) of BSRM declined 50.50 per cent or Tk 3.98 to close at Tk 3.90 for the year ended on June 30, 2020.
For the same period of the previous year, the company reported its consolidated EPS of Tk 7.88, according a disclosure posted on the website of Dhaka Stock Exchange (DSE).
The board of directors of BSRM has recommended 15 per cent cash dividend for the year ended on June 30, 2020.
The company has also reported consolidated NAV per share of Tk. 99.89 and consolidated NOCFPS of Tk. 24.05 for the year ended on June 30, 2020 as against Tk. 97.46 and Tk. 39.62 respectively for the same period of the previous year.
In its disclosure, the company said share of profit of equity accounted investees stood at Tk 509.57 million which was Tk. 1060.71 million in 2019 as income of subsidiaries and associates has declined due to minimum tax imposed by the government on the steel industry in Section 82 C of Income Tax Ordinance.
"Our selling and distribution cost also increased by 231. 29 million to maintain and increase the market share," the company said.
The company shall have to pay minimum tax as per Section 82 C of the Income Tax Ordinance 1984 which is higher than the tax the company would have paid on actual profit, according to the disclosure.
The EPS of BSRM Steels declined 57.17 per cent or Tk 2.63 to close at Tk 1.97 for the year ended on June 30, 2020. The company's EPS was Tk 4.60 for same period of the previous year.
The company has also reported NAV per share of Tk. 56.84 and NOCFPS of Tk. 5.81 for the year ended on June 30, 2020 as against Tk. 55.58 and Tk. (12.43) respectively for the same period of the previous year.
The board of directors of BSRM Steels has recommended 15 per cent cash dividend for the year ended on June 30, 2020.
In its disclosure, the company said their EPS declined compared to previous year due to increase in deferred tax and finance expenses along with less production and sales witnessed amid COVID-19 pandemics.
Meanwhile, the company's board of directors has approved investment of around Tk 7.0 billion for setting up a new steel plant to raise capacity by another 5 lakh M. Ton MS products per annum to support the market demand.
"The new plant is expected to start its operation by the middle of 2023," according to disclosure of BSRM Steels.
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