BD Lamps returns to profit on increased sales

Highlights:

• BD Lamps' product sales increased by 21% in the first half of this fiscal year compared to those of the same period of the previous fiscal year
• Its profit stood at Tk2.06 crore during the same period
• The company's revenue and other income increased, while its financing costs decreased
• Its manufacturing plant has been shifted from Mohakhali to Narsingdi

Electric bulb manufacturer Bangladesh Lamps Limited, widely known as BD Lamps, has bounced back to profit – after huge losses – as its product sales increased by 21% in the first half of fiscal year 2020-2021, compared to those of the same period of the previous fiscal year.

In the first half of the current fiscal year, its revenue increased by Tk11.59 crore and its profit stood at Tk2.06 crore, while it posted a loss of Tk3.96 crore during the same period in the previous fiscal year.

Bangladesh Lamps said, despite the Covid-19 crisis, the company's profit rose as its revenue and other income increased, while its net financing cost decreased.

In the first six months of fiscal year 2019-2020, its loss per share was Tk4.23 and its net loss amounted to Tk3.96 crore.

But, the company overcame the losses and posted Tk2.06 crore profit while its EPS stood at Tk2.21 in the first half of the current fiscal year.

In the first quarter (July-September) of the current fiscal year, its total revenue rose by 14%. During the period, its revenue was Tk31.78 crore and its profit was Tk1.10 crore. The company's revenue was at Tk27.93 crore and it posted a loss of Tk1.38 crore in the same period of the previous year.

In the second quarter (October to December) of fiscal year 2020-2021, its revenue stood at Tk35.20 crore and its profit was Tk96.25 lakh. During the same period in the previous year, its revenue was Tk27.47 crore and profit stood negative at Tk2.57 crore.

Bangladesh Lamps Limited manufactures Philips lighting products under an exclusive licensing agreement with Philips Electronics NV Holland. It also manufactures electric bulbs, CFL, tube lights, and other lighting products under the Transtec brand.

General and institutional investors hold 38.12% of the shares of the listed company.

The company has shifted its manufacturing plant from the Mohakhali area to Ghashirdia, Narsingdi as the leasing agreement expired on 31 December, 2020.

Sources at the company said they shifted the plant, but failed to start the process of manufacturing General Lamp Service (GLS) due to the lack of a gas connection.

Bangladesh Lamps Company Secretary, Mohammad Ruhan Miah, told The Business Standard, "Already our manufacturing plant has been shifted to our new premises. We will get the gas connection within a short time."

"It is not possible to start the process of manufacturing GLS without a gas connection. But there is no possibility of a shortage of products on the market, as – prior to shifting from Dhaka – we manufactured enough products to keep a steady supply for the next couple of months," he added

Bangladesh Lamps Limited was incorporated in 1960 as a subsidiary of Philips, Holland. In March 1993, Philips sold all its shares to Transcom. The company was listed on the share market in 1981.