State-run Meghna Petroleum registered a 68 per cent year-on-year growth in profit to Tk 1.63 billion in the October-December (Q2) quarter of FY25, backed by a jump in operating profit and non-operating income.
Non-operating income, however, played a pivotal role in pushing up the profit in the quarter.
The company's operating profit jumped 88 per cent year-on-year to Tk 308.61 million in Q2, FY25. The non-operating income escalated 48 per cent year-on-year to Tk 1.84 billion in the quarter through December last year.
The non-operating income was mainly derived from interest on bank deposits, a major source of income for state-run companies. Income in this segment shot up during the quarter, compared to the same quarter a year earlier, due to interest rate hikes.
Non-operating income also played a key role in the profit growth observed in July-December (H1), FY25.
The company experienced a 59 per cent growth year-on-year in profit to Tk 3.01 billion in H1, FY25.
During the period, the non-operating income advanced 49 per cent year-on-year to Tk 3.32 billion while operating income rose 47 per cent year-on-year to Tk 669.02 million during the period.
Meghna Petroleum exhibited an upward trend in profit and distributed good dividends for the four years to FY24.
It reported record profit of Tk 5.42 billion for FY24, again supported by high income from bank deposits.
The stock's P/E (price-to-earnings) ratio is only 3.71 based on latest un-audited financial results.
The stock of Meghna Petroleum closed at 206.30 per share on Wednesday on the Dhaka Stock Exchange (DSE).
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