BSRM Group, the largest steel maker in the country, has reported significant profit surges for two of its entities in the three quarters of the current financial year, even as sales for both entities experienced a decline.
Despite an 8 percent year-on-year drop in earnings during the January-March period, BSRM’s profit soared by a remarkable 574 percent to Tk 333 crore in the July-March period ending in June, primarily attributed to a reduction in finance costs. However, the steel company’s revenue witnessed a notable decline, dropping by 24 percent to Tk 6,316 crore from Tk 8,291 crore a year ago. Sales slumped by 41 percent year-on-year in the January-March quarter, as disclosed by the company in a price-sensitive announcement.
Similarly, BSRM Steels Ltd also experienced a decline in sales over the three quarters ending in March of the 2023-24 financial year. Despite this, the company reported a notable 11 percent year-on-year increase in profit to Tk 124 crore in the January-March quarter. The third-quarter earnings contributed to a total profit of Tk 279 crore for BSRM Steels, marking a significant 130 percent increase from the same period a year ago, as stated by the company in its price-sensitive information following a board meeting.
Shekhar Ranjan Kar, the company secretary of BSRM, attributed the improved financial performance to a decline in finance costs, increased availability of foreign currency for raw material imports, and falling prices of raw materials in the international market.
Both entities, listed on stock exchanges, also saw spikes in their earnings per share (EPS). During the July-March period of 2024, BSRM Ltd’s EPS skyrocketed to Tk 11.17 from Tk 1.66 in the same period a year ago. Similarly, BSRM Steels reported a rise in EPS to Tk 7.43 in the nine months ending in March 2024, compared to Tk 3.22 in the July-March period of the previous year.
Overall, despite the challenges posed by declining sales, BSRM Group’s entities have demonstrated resilience and adaptability, achieving significant profit growth through strategic cost management and favorable market conditions.