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Sena Kalyan Insurance's EPS falls as number of shares increases

FE REPORT | March 16, 2023 00:00:00

Sena Kalyan Insurance Company (SKIC) saw a marginal rise in profit in 2022, but its earnings per share (EPS) declined due to increased number of shares.

The company was able to report a profit growth riding on underwriting profit from earned premium.

Its net profit rose 8 per cent year-on-year to Tk 114.40 million in 2022.

The earnings per share (EPS) fell 25 per cent to Tk 2.86 in 2022 from Tk 3.83 in 2021.

Company secretary M.M. Sajedul Islam said the company was unable to utilise the IPO fund in 2021 when it went public.

Then the EPS was calculated for 2021 based on weighted average of pre-IPO and post-IPO shares.

"The EPS was calculated for 2022 based on the post IPO shares and that's why the EPS declined compared to 2021," Mr. Islam explained.

The Net asset value per share (NAVPS) was Tk 20.17 for 2022 against Tk 26.99 reported for 2021. And the net operating cash flow per share (NOCFPS) declined to Tk 4.45 in 2022 from Tk 8.89 a year ago.

"EPS, NOCFPS and net asset value per share (NAVPS) have decreased from last year's due to the increase in number of shares," reads the corporate disclosure.

Meanwhile, the company's board of directors has recommended 12 per cent cash dividend for 2022.

Sena Kalyan Insurance Company, presently an 'A' category company, was listed on the stock exchanges in 2021.

Its sponsor-directors held 60 per cent shares, institutes 4.13 per cent, and general investors 35.87 per cent at the end of February.

The company's share price jumped to Tk 63.70 each on November 2 with a rise of 38 per cent from Tk 46.10 on October 12, 2022.

Later, the price exhibited volatility and rose to Tk 63.90 on January 19 this year and a gradual fall was observed until March 2. The stock closed at Tk 48.40 on Wednesday.

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