Coppertech to supply copper wire to state-owned Eastern Cables
it will supply 100 tonnes of finished copper wire to Eastern Cables for Tk11.27 crore
Coppertech Industries – a copper pipe, tube, bus bar, strip, and wire producer in the country – will supply finished copper wire to the state-owned PVC cable company – Eastern Cables.
Both the companies are listed on stock exchanges.
On Tuesday, Coppertech Industries published price-sensitive information on the website of the Dhaka Stock Exchange (DSE).
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As per the disclosure, it will supply 100 tonnes of finished copper wire to Eastern Cables for Tk11.27 crore.
Eastern Cables Limited is a loss-making entity under the Bangladesh Steel and Engineering Corporation that has been incurring losses since the 2017-18 fiscal year, whereas Coppertech Industries is a profit-making firm that was publicly listed in 2019.
In an open tender that was floated by Eastern Cables in October, Coppertech was selected because of its lowest price bid to supply the copper wire, said sources.
Coppertech's Company Secretary SK Miraj Ali told The Business Standard, "It's our first deal with Eastern Cables. We will supply the finished copper wire which is mostly used in the industry."
In FY21, Coppertech Industries posted a 197% increase in profit riding on an 18.90% growth in sales, and a decrease in other costs compared to the previous year.
Its profit stood at Tk6.42 crore in FY21, which was Tk2.16 crore in the previous fiscal year.
On the other hand, Eastern Cables incurred a loss of Tk12.35 crore, and its loss per share stood at Tk4.68 in FY21. The company will not pay any dividends to its shareholders.
In FY20, the net loss of the company was Tk17.57 crore, and loss per share stood at Tk6.46.
