Bashundhara Paper rebounds following school reopening

Summary:

• Profit rose 31% in July-Sept for higher sales
• Other incomes increased by 81%
• Reopening of educational institutions significantly increased paper sales
• Exports of tissue and hygienic products also rose
• In FY21, profit surged 45% on rising tissue paper sales
• Bashundhara Paper rebounds following school reopening

Bashundhara Paper Mills (BPML) – a concern of Bashundhara Group – has bounced back by beating the pandemic shocks in the wake of the reopening of educational institutions across the country.

In the first quarter of the current fiscal year, the company registered a 31% growth in profit riding on increased paper sales.

Besides, sales of its tissues and hygienic products in the local market as well as exports rose significantly during the period.

"After the reopening of educational institutions, sales and businesses grew significantly. At the same time, exports also rose," said M Mazedul Islam, company secretary of Bashundhara Paper.

"The company also enjoys tax benefits as our old inventories were not sold and remained unutilised in the previous fiscal year. Sales of those inventories have increased but the company does not need to pay tax against those as it paid the tax last year," he added.

The prolonged closure of educational institutions to curb the spread of novel coronavirus caused a significant drop in sales of Bashundhara Paper, said Mazedul, adding, "But sales of tissue and hygienic products rose. As a result, the company did not face a severe blow, unlike many others."

The reopening of schools, however, has helped the company recover the losses in paper sales, he added.

After an 8% jump in revenue in the 2020-21 fiscal year, Bashundhara Paper Mills posted a 1% growth in revenue year-on-year in the July-September period of this fiscal year.

During the first quarter of this fiscal, its revenue stood at Tk199.69 crore, up from Tk198.07 crore in the same period a year ago.

After-tax, its profit rose to Tk6.81 crore, which was Tk5.18 crore in the period last year.

The company's earnings per share (EPS) rose to Tk0.39 from Tk0.30.

According to the company's financial statements, its other income rose by 81% to Tk3.94 crore in the first three months of this fiscal year.

In FY21, the company registered Tk928 crore in annual revenue, an 8% growth from the previous year's Tk854 crore.

Based on the growth, it recommended a 12% cash dividend for its shareholders.

It was listed on the stock exchanges in 2018.

Besides paper and tissue products, the company also manufactures paper sack products, mosquito coil, and hygiene products including sanitary napkins.