GPH Ispat sees steady growth in net profit, turnover in last three FYs

Mohammad Mufazzal | Published: June 08, 2019 21:22:34

GPH Ispat, one of the country's leading steel manufacturing companies, displayed a steady growth in net profit and turnover in last three fiscal years (FYs) through better utilisation of production capacity.
The company reported its net profit of above Tk 643.58 million for the year ended on June 30, 2018.
The EPS rose 12.65 per cent in 2018 from the net profit of above Tk 571.30 million reported for 2017.
The company's net profit was above Tk 289.61 million for 2016, above Tk 292.46 million for 2015 and above Tk 278.85 million for 2014, according to annual reports of the company.
Not only structural bar, the GPH Ispat is also one of the producers of low and medium carbon and low alloy steel billets in Bangladesh, the main ingredients of manufacturing graded steel bar.
The company has also showed a steady growth in net turnover during the last five FYs.
According to the annual report, the company's turnover was above Tk 9.81 billion for 2018, above Tk 7.83 billion for 2017, above Tk 5.74 billion for 2016, above Tk 5.98 billion for 2015 and above Tk 4.68 billion for 2014.
The operating profit of GPH Ispat also gradually rose during 2014 to 2018. The company's operating profit was above Tk 1.27 billion for 2018, above Tk 1.09 billion for 2017, above Tk 753.74 million for 2016, above Tk 731.68 million for 2015 and above Tk 711.66 million for 2014.
The company displayed a marginal rise in EPS for January-March, 2019 compared to the corresponding period of the previous year.
The EPS was Tk. 0.64 for January-March 2019 as against Tk. 0.63 for January-March 2018.
The EPS was Tk. 1.57 for July 2018-March 2019 as against Tk. 1.44 for July 2017-March 2018.
According to Mohammed Jahangir Alam, managing director of GPH Ispat, amid severe challenges of business circumstances, the company adopted the policies of lowering cost, enhancing product quality, saving energy and diversifying customer services.
"Consequently, the GPH Ispat executed the integrated researches of multi-fields and inter-organisations, which enabled the arrangement wider, roots deeper, aims higher and influences greater," Mr Alam said in his message included in the financial statement for 2018.
To fulfill the current and upcoming steel demand, the company is in the process of production enhancement with the latest technology based-ultra-modern steel plant, Alam also said.
GPH Ispat disbursed 10 per cent stock dividend earlier recommended for the year ended on June 30, 2018.
The company disbursed 5.0 per cent stock dividend in 2014, 17 per cent cash in 2015, 12 per cent cash dividend in 2016, 5.0 per cent cash and 5.0 per cent stock in 2017.
The company reported its EPS of Tk. 1.97, NAV per share of Tk. 16.89 and NOCFPS of Tk. 1.12 for the year ended on June 30, 2018 as against Tk. 1.83, Tk. 16.15 and Tk. 3.83 respectively for the same period of the previous year.
The EPS of GPH Ispat was Tk 2.65 during May, 2015 to June, 2016, Tk 0.20 during May, 2016 to June, 2016 and Tk 2.60 during May, 2015 and April, 2016.
GPH Ispat produces two products- MS Billet and MS Rod. The company's installed capacity was 168,000 metric tonnes for MS Billet in both 2017 and 2018. The installed capacity was 120,000 metric tonnes for MS Rod in both 2017 and 2018.
GPH Ispat, presently an 'A' category company, was listed on the stock exchanges in 2012.
The company's sponsor-directors hold 49.61 per cent shares, institutions 15.78 per cent and general shareholders 34.61 per cent as of April 30, 2019.
The share price of GPH Ispat closed at Tk 35.90 each with a marginal rise of 0.84 per cent or Tk 0.30 on May 30.
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