Steel maker BSRM Steels secured a 5.5 per cent year-on-year increase in profit to Tk 955.05 million in the second quarter of FY26, whereas Bangladesh Steel Re-Rolling Mills reported an 11.1 per cent year-on-year decline in earnings to Tk 787.1 million in the same quarter.
Both companies, belonging to the same group, however, said they had been experiencing shrinking demand and so had cut down prices to maintain revenue.
BSRM Steels, which managed to grow revenue by 31.08 per cent to Tk 33.39 billion in the quarter to December compared to the corresponding period of the previous year, witnessed the increase in profit. Its cost of sales rose nearly 2.89 per cent year-on-year in the October-December quarter.
"Market demand is still low. We had to reduce our prices dramatically. That's why we couldn't lift our profits much despite a handsome increase in our revenue," said S M Nurul Karim, chief financial officer of BSRM Steels Limited.
BSRM Steels' earnings per share stood at Tk 2.54 in the second quarter of FY26, compared to Tk 2.41 per share in the same quarter a year ago.
After the disclosure, the share price of BSRM Steels dropped 2 per cent to Tk 68.40 on Sunday on the Dhaka Stock Exchange (DSE).
In the six-month period to December, BSRM Steels' profit stood at Tk 1,931 million compared to Tk 1,755 million in the same period a year ago.
However, Bangladesh Steel Re-Rolling Mills failed to maintain profit growth, though sales grew by 14.06 per cent to Tk 24.11 billion in the quarter to December. The cost of goods sold increased by more than 5.26 per cent, which eroded its profit.
Hence, the profit of Bangladesh Steel Re-Rolling Mills fell 11.1 per cent year-on-year in the October-December quarter of FY26.
"Market is still very dull," said Shekhar Ranjan Kar, company secretary of Bangladesh Steel Re-Rolling Mills.
Bangladesh Steel Re-Rolling Mills' earnings per share stood at Tk 2.64 in the second quarter of FY26 compared to Tk 2.97 in the same quarter of the previous year.
After the earnings disclosure, its share price dropped 1.67 per cent to Tk 81.50 on Sunday on the Dhaka Stock Exchange (DSE).
In the six-month period to December last year, profit stood at Tk 2,027 million compared to Tk 2,011 million in the corresponding period of the previous year.
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