Wata Chemicals witnessed a 32.56 per cent decline in its earnings per share (EPS) in nine months for July 2021 to March 2022 due to massive price hike of raw materials and increased cost of goods sold.
In a filing with Dhaka Stock Exchange (DSE) Sunday, the company said its EPS dropped to Tk 3.23 for July 2021-March 2022, from Tk 4.79 in the corresponding period.
The chemical company's EPS in three months for January-March 2022, however, increased slightly by 4.41 per cent to Tk 0.71 which was Tk 0.68 for January-March 2021.
EPS is the portion of a company's profit that is allocated to every individual stock. In short, it serves as an indicator of a company's profitability.
"In the current global scenario, Wata Chemicals is also experiencing massive price increase in the purchase (import) of raw materials, especially for "Sulphar", said the company in a disclosure.
The company informed that the average price of main raw material sulphur has soared by about 143 per cent over the previous year.
"As a result, net income after deduction of tax decreased by over Tk 23.15 million causes the significant deviation in EPS," said the company.
The company also informed that although the crisis mostly started later due to the coronavirus situation, its increase day by day is beyond control.
As the raw material is a petroleum byproduct, the war between Russia and Ukraine caused prices to rise further, said the company.
"Price of raw materials imported from the Middle East and Russia have increased much more than the previous year due to shortage of containers, freight of ship, increase of port charges of domestic and transshipment port, unavailability of regular liner vessels," according to the company.
The net operating cash flow per share (NOCFPS) was Tk 4.67 for July 2021-March 2022 as against Tk 3.42 for July 2020-March 2021.
The net asset value (NAV) per share was Tk 60.39 as on March 31, 2022 and Tk 60.22 as on June 30, 2021.
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