GPH Ispat, a listed steel manufacturing company, posted a massive 850 per cent increase in its third quarter (Q3) earnings for January-March, 2021 compared to the same quarter of the previous year despite pandemic.
The engineering sector company's earnings per share (EPS) soared sharply, thanks to marketing of its new products from the trial production of the new expansion plant, company officials said.
In a filing with Dhaka Stock Exchange (DSE) Sunday, the company said its earnings per share (EPS) increased to Tk 1.14 for January-March 2021, up by a whopping 850 per cent, from Tk 0.12 in the corresponding period.
The steel producer's EPS for nine months that ended on March 31, 2021 stood at Tk 2.89 against Tk 0.94 for the same period of the previous year.
The company's new expansion plant with a cost of Tk 23.90 billion using state-of-the-art technology started trial production in early September last year.
As a result, the market share of the company has been increased significantly. Besides, the company started the export of MS billet of its new expansion plant which is the new market opportunity for the company, the company said in the filing.
"The combined effects of all above registered a positive impact on EPS and significant deviation has been occurred compared to the corresponding period," said the company.
The new factory, which is an expansion of GHP Ispat's existing operations, has the annual capacity to produce 840,000 tonnes of mild steel (MS) billet and 640,000 tonnes MS rod and medium section products, such as support beams and flat bars.
The net asset value (NAV) per share was Tk 18.62 as on March 31, 2021 and Tk 17.01 as on June 30, 2020. The company's net operating cash flow per share (NOCFPS) was Tk 1.28 for July 2020-March 2021 as against minus Tk 4.16 for July 2019-March 2020.
The NAV per share is increased due to incremental net profit in comparing to the reporting period ended on March 31, 2021 while NOCFPS increased due to collection against sales was higher than the payment to supplier and lower investment in working capital, said the filing.
Each share of the company, which was listed on the DSE in 2012, closed at Tk 34.70 on Sunday, gaining 1.17 per cent over the previous day. Its share traded between Tk 24.30 and Tk 36 in the last one year.
The company disbursed 5.0 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2020. In 2019, the company also provided 5.0 per cent cash and 5.0 per cent stock dividend.
The company's paid-up capital is Tk 3.97 billion, authorised capital is Tk 10 billion and the total number of securities is 397.10 million.
The sponsor-directors own 49.61 per cent stakes in the company while the institutional investors own 16.93 per cent and the general public 33.46 per cent as of March 31, 2021, the DSE data shows.
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