40% of IT firms report EPS decline
60% of companies reported a drop in their profits in the first half of the current fiscal year
Although online reliance has increased during the ongoing pandemic, 40% of listed internet service providers reported year-on-year decline in their earnings per share (EPS).
Like companies in other sectors, the business of IT firms listed on stock exchanges did not go well.
Around 50% of the IT companies reported an increase in profit, but it was insignificant.
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Some companies in this sector have done good business cashing in on the advantage of online reliance by big organisations.
Ten listed IT companies released their financial statements for the first half of fiscal year 2020-2021.
The EPS of four companies declined compared to the same period of the previous year.
Five companies reported an increase in their earnings per share while the EPS of one firm remained unchanged.
According to company sources, the clients of IT service providers were large corporate organisations or groups.
Abul Kalam Azad, head of finance at Information Service Network Limited – which provides broadband internet, networking, software and hardware services – told The Business Standard, "Our business was good in the 2019-2020 financial year before the novel coronavirus outbreak, but it did not do well later. Large corporate organisations are our clients. The company's income was also affected as the offices of big clients were closed during the lockdown."
According to the corporate disclosures, after a 66-day nationwide lockdown, 60% of companies reported a drop in their profits while the remaining 40% posted profit growth in the July-September quarter.
Although the business activities were almost normal, the recovery of IT companies in the October-December quarter was not good.
Information Services Network Ltd's EPS fell by 91% in the first half of the year. Its revenue was Tk5.01 crore, profit Tk2.55 lakh and EPS Tk0.02.
During the same period a year ago, its revenue was Tk4.50 crore, profit Tk24.98 lakh and EPS Tk0.23.
Intech Limited's profit has increased by 50% compared to the previous year. In the first half of the current fiscal year, its profit was Tk56.37 lakh and EPS Tk0.12.
During the same time of the previous year, the company had a profit of Tk37.58 lakh and its EPS was Tk0.12.
Daffodil Computers Ltd's profit fell by 57% in six months.
In the second quarter, the profit decreased by 38% and in the first quarter it fell by 69%.
Compared to the previous year, the profit of Aamra Networks Limited decreased by 26% in the first half of the year. In the first quarter, it fell by 9.30% and in the second quarter by 43%.
Aamra technologies Limited's profit fell by 29% in the first half of the current fiscal year. Profits fell by 23% and 34% in the first and second quarters, respectively.
Compared to the same period a year ago, the profit of ADN Telecom Limited, BDCOM Online Ltd, IT Consultants Limited, and Agni Systems Ltd increased by 35%, 13%, 13%, and 9%, respectively.
