The state-run National Tubes returned to profit in FY24 after two consecutive years, riding on a steep rise in revenue income.
The company has reported a net profit of Tk 695 million for FY24 while it endured a loss of Tk 18.32 million the year before. Its loss in FY22 was Tk 82.77 million.
According to company officials, National Tubes suffered losses in FY22-FY23 because of an acute shortage of raw materials post pandemic. Moreover, a hike in the prices of raw materials in the international market made it more challenging to make profits in the years.
"Our company was able to run operations fully as hurdles to import eased and raw materials became cheaper [in FY24]," said Pranjit Paul, company secretary of National Tubes.
The company supplies its products mainly to Titas Gas and Dhaka WASA.
Mr. Paul said the supply of products to the clients had increased significantly in FY24, leading to an 82 per cent year-on-year increase in revenue to Tk 570 million.
However, the company's net operating cash flow per share turned Tk 3.68 in the negative in FY24, which was Tk 0.57 in the previous fiscal year.
The company said the operating cash flow was negative as huge funds went out for the purpose of repaying loans taken during the Covid period. Payment made for imports of raw materials was another reason behind the negative cash flow.
Meanwhile, the company's board of directors has recommended a 4 per cent cash dividend for FY24. No dividend was paid for the previous two years, for which the company has been transferred to the 'Z' category on the bourses.
Meanwhile, the stock reached Tk 77.90 per share on August 8 on the Dhaka Stock Exchange. It fell to Tk 66.60 per share on August 22.
The stock had ups and down since then and finally closed at Tk 74.30 per share on Thursday, with a loss of 2.37 per cent from the previous session.
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