Boosted by a merger with an IT firm, Kay & Que (Bangladesh) has seen a staggering 981% year-on-year growth in net profit for the October to December quarter of the current fiscal year. The company reported a consolidated net profit of Tk81.59 lakh, with earnings per share (EPS) at Tk1.19 during the final three months of 2023.
In mid-2023, the Bangladesh Securities and Exchange Commission (BSEC) approved Kay & Que, a publicly listed CNG filling station that also deals in stones, to merge with Multi Sourcing Limited, an IT firm. Since August of the previous year, profits from the IT unit have been included, contributing significantly to the overall consolidated profit.
To facilitate the merger, the company received regulatory approval to issue 17.1 lakh ordinary shares solely for Multi Sourcing Ltd shareholders. Following the acquisition, the company’s paid-up capital increased from Tk5.157 crore to Tk6.86 crore.
Kay & Que’s IT unit offers a wide range of software, digital solutions, and value-added services, including quality content, VAS, IVR services, text-based services, premier services, GPRS contents, and large-scale enterprise software and hardware turnkey solutions.
After facing challenges in the carbon rod, coal tar, and pesticide business, the company decided to diversify its operations in February 2022. It ceased manufacturing carbon rods due to the closure of its original supplier’s factories, resulting in a lack of spare parts and alternatives from other sources, ultimately leading to deteriorating rod quality and subsequent losses.
The coal tar unit, established in 2002 as a byproduct of Unit 1, was shut down due to declining demand in the Bangladeshi market and inadequate marketing networks and distribution channels. Similarly, the pesticide unit was closed for similar reasons. Now, the company focuses on its CNG and IT units as part of its revised business strategy.