Bangladesh Building Systems fall into losses
The firm suffers a drop in its other income and non-operating income, and an increase in expenses during the pandemic
Highlights:
- Incurred loss of Tk3.58 crore in FY21
- Profit was Tk3.45 crore in Jul-Dec of 2020
- Declared 2% cash dividends
- The share price fell 10.33% to TK16.50 each on Sunday
- In FY20, profit was Tk10.87cr
- Paid a 10% dividend
- Manufactures prefabricated steel structure
From a profit-making company, Bangladesh Building System – a pre-fabricated steel structure manufacturer in the country – has fallen into losses owing to a drop in its other income and non-operating income, and an increase in expenses during the Covid-19 pandemic.
In fiscal 2020-21, it incurred a loss of Tk3.58 crore, and the loss per share stood at Tk0.22.
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The company, which got listed on local stock exchanges in 2013, has recommended a 2% cash dividend for its shareholders, which is lower than the previous year.
Due to an excessive sell pressure by its frustrated shareholders for the loss and lower dividend, the share price fell 10.33% to Tk16.50 each, from Tk18.40 each on the previous trading session.
As per its financials, Bangladesh Building System incurred losses in the last half of the fiscal year ending on 30 June 2021.
In the first half, it posted a profit of Tk3.45 crore amid the pandemic.
Though it incurred a loss of Tk1.89 crore from January to March of 2021, in the first three quarters of the fiscal year, it reported a profit of Tk1.55 crore.
But in the last quarter of FY21, the pre-fabricated steel structure manufacturer faced a pandemic blow, resulting in losses.
Despite a decline in revenue by 46% to Tk87.6 crore in fiscal 2019-20, it was able to post a profit of Tk10.9 crore.
Although the profit was 61% lower than the previous year.
After the blow, in that fiscal year, it paid 10% dividends to its shareholders; in which 5% cash and 5% stock dividends.
The company stated in its disclosure published on stock exchanges on Sunday, the annual general meeting (AGM) will be held on 20 December through a digital platform, and the record date has been set for 14 November.
It stated net operating cash flow per share stood at Tk1.77, which was negative at Tk0.63 in the previous year, due to an increase in collection and a decrease in creditors' payment.
Owing to the pandemic, which broke out in the country last year, the company has suffered a drop in both sales and profits.
The principal activities of the company are manufacturing and marketing of pre-engineered steel buildings in Bangladesh to meet-up the growing demand, especially in the industrial sector.
It deals with pre-engineered steel buildings like factories, warehouses, hall rooms, workshops, aircraft hangers, office buildings, commercial showrooms, distribution centres, supermarkets, restaurants, and residential buildings as well.
As of September 2021, out of the total shares, sponsors and directors held 30.01%, institutional investors 38.19%, foreign investors 0.13%, and general investors 31.67%.
