Earnings of many listed companies, which so far made financial disclosures (un-audited) for the third quarter (Q3) of this fiscal year, have declined significantly during January to March, 2015 compared to the corresponding period of the previous year.
Experts blamed different reasons including the political unrest hampering the companies' production and supply chains causing lower profits.
"Companies' earnings mainly depend on their production and proper distribution of products. Productions and supply chains were seriously hampered mainly due to internal unrest. As a result, the companies' earnings also declined during the Q3," said Dr. AB Mirza Azizul Islam, a former chairman of the securities regulator.
Echoing Mr. Islam, Dr. Mahmood Osman Imam, a Professor at Finance Department of the University of Dhaka, said the companies' production and market were affected mainly because of political unrest.
"The earnings of banks and insurance companies also may decline due to the reasons which affected the profitability of the companies of the Fuel and Power sector," Mr. Mahmood said.
According to information of Dhaka Stock Exchange (DSE), the EPS of Eastern Lubricants declined to Tk 0.30 from Tk 2.86 calculated during same period of the previous year. The company's net profit has stood at Tk 0.30 million against the value of Tk 2.84 million calculated during same period of previous year.
The EPS of Padma Oil reduced by 47 per cent to close at Tk 3.02 from previous value of Tk 5.71. The company's net profit declined to Tk 296.76 million from previous value of Tk 560.89.
The EPS of AMCL (PRAN), C & A Textile and DESCO, however, increased in the Q3 marginally.
The EPS of Bangladesh Steel Re-Rolling Mills (BSRM), which made debut trading on Monday, has reduced significantly.
The company's basic EPS has stood at Tk 0.50 during July to September, 2014 against the value of Tk 1.64 calculated in the same period of the previous year. The company reported its EPS of Tk 5.06 as of December, 2013 in the prospectus of the initial public offering (IPO).
The net profit and EPS of Aamra Technologies have stood at Tk. 3.94 million and Tk. 0.07 as against Tk. 5.38 million and Tk. 0.10 respectively calculated in the same period of the previous year.
The Peninsula Chittagong reported its EPS of Tk 0.31 for the Q3 against the value of Tk 0.40 calculated in the same period of the previous period. The company's net profit declined to Tk. 34.82 million from the value of Tk. 45.29 million of the previous year.
The EPS of Apex Tannery reduced to Tk 0.05 for the Q3 from previous value of Tk 0.83.
Among other companies, the EPS of Samorita Hospital and National Tubes also declined.
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