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Indo-Bangla Pharma's profit plummets 92pc in Q3

Sales revenue drops for a temporary ban on 9 of its products

FE REPORT | May 29, 2023 00:00:00

Indo-Bangla Pharmaceuticals endured a 92 per cent year-on-year drop in income in the January-March quarter of FY23, driven by a decline in sales and a significant increase in financial expenses.

The drug maker reported a profit of only Tk 1 million in the three months through March this year, down from Tk 13 million in the same quarter a year before.

Its sales revenue decreased 28 per cent year-on-year to Tk 103 million in the quarter while financial expenses jumped 58 per cent to Tk 1.69 million.

The company has not mentioned the reasons behind the significant deviation in profit and other indicators though listed companies are required to give clarifications in such cases.

Company secretary Mohi Uddin could not be reached for comments despite repeated attempts.

However, a company official said on condition of anonymity that the company's sales revenue had plunged as 9 of its products had been banned temporarily by the Directorate General of Drug Administration (DGDA).

Also, an increase in the cost of goods sold and financial expenses slashed earnings, he said.

The company's net operating cash flow per share (NOCFPS) nosedived to Tk 0.06 in the nine months through March this year, down from Tk 0.55 in the same period of the previous fiscal year due to higher payment to suppliers.

Indo-Bangla Pharma's annual profit tumbled 81 per cent year-on-year to Tk 25.17 million in FY22. It declared only 1 per cent cash dividend.

Meanwhile, the stock has been languishing at the floor price of Tk 17 each share for the last two months.

Situated in Barisal, Indo-Bangla Pharma is one of the pioneers in the industry in Bangladesh, founded by Ramlal Vatracharge in 1954.

It is engaged in manufacturing and selling all kinds of medicines (excluding antibiotics), medical preparations drugs & chemicals (Human Health).

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