Bangladesh Submarine Cables has revised its earnings per share (EPS) for the first and second quarters of FY25 as it last time did not take into account all the shares issued to the government against share money deposits.
The EPS has been recalculated to ensure conformity with the accounting rule.
The earnings of the first and second quarters were disclosed in November last year and January this year. Revised EPS for both the quarters were published on Thursday.
"We took permission from the regulators before we published our earnings last time, but after we published the results they ordered us to show earnings considering total shares we have issued to the government," said Md. Aslam Hossain, managing director and CEO of Bangladesh Submarine Cables.
Hence, the EPS for the first quarter was reduced to Tk 2.33 from Tk 2.57. And for the second quarter it has been revised down to Tk 2.12 from Tk 2.24.
For the six months through December 2024, EPS was calculated at Tk 4.74 but slashed to Tk 4.52 during recalculation.
"This is true that earlier our per share earnings were somewhat inflated. But we did it with permission. However, our total income remains unchanged."
Earlier, the company considered the total number of shares as 192.96 million, which is now 204.03 million.
The changes in the data also impacted the company's operating cash flow. The cash flow has been revised to Tk 4.73 per share from Tk 4.98 per share for July-December last year.
The net asset value has also been cut to Tk 83.41 per share from Tk 87.85 per share for the same timeframe.
A share money deposit is the money paid in exchange for shares that have not been acquired yet. The government has injected funds into the company for implementation of various projects since its 2008 inception.
The company has been issuing shares in phases to the government against the fund injected.
Meanwhile, the earning's disclosure was followed by the stock price going up 0.32 per cent to Tk 126.80 per share on Thursday on the Dhaka Stock Exchange.
The company's price-to-earnings (P/E) ratio based on diluted earnings is 14.03, still lower than the market's forward P/E, which, according to EBL Securities, is 16.14.
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