Despite its growth in the second quarter, the company’s revenue decreased by 6.97% and profit decreased by 16.28% in the first half of this fiscal year.
The paper industry is one of the sectors that was most affected by the Covid-19 crisis, but Bashundhara Paper Mills Limited (BPML) has posted a 116% growth in its profit in the second quarter of the current fiscal year.
In the October-December period of the FY2020-2021, Bashundhara Paper Mills' profit doubled compared to that in the same time of the previous year as the sales of its tissue paper and other hygiene products increased during the pandemic.
Despite its fantastic growth in the second quarter, the company's revenue decreased by 6.97% and profit decreased by 16.28% in the first half of this fiscal year, compared to those at same period of in the previous fiscal year.
"Demand for paper has decreased as educational institutions have remained closed since March last year," said M Mazedul Islam, company secretary of Bashundhara Paper Mills.
"But during the pandemic new products were introduced to increase sales. In the fear of infection, people are using our new tissue and anti-bacterial tissue products more. So the sales of tissue papers increased and consequently the profit rose in the second quarter," He added.
In the first six months of FY2020-2021, the company's net revenue stood at Tk437.71 crore and profit stood at Tk12.75 crore. Its earnings per share stood at Tk0.73, which was Tk0.88 in the same period of the previous fiscal year.
In the second quarter (October-December) of FY2020-2021, its revenue stood at Tk239.63 crore and profit at Tk7.56 crore. Its earnings per share stood at Tk0.20.
Bashundhara Paper Mills Limited was incorporated as a private limited company in 1993. The company got listed on the stock exchanges in 2018.
The company manufactures various types of paper, tissue and hygiene products in its three units. BPML is the leader in the tissue market. Its products are exported to over 35 different global destinations.