BSRM Limited faces 8.51% revenue decline in H1
The downturn was attributed to a slowdown in sales volume resulting from production disruptions caused by a shortage of raw materials.
Bangladesh Steel Re-Rolling Mills (BSRM) Limited, the largest steel manufacturer in the country, experienced an 8.51% year-on-year decline in revenue during the first half of this fiscal year.
The downturn was attributed to a slowdown in sales volume resulting from production disruptions caused by a shortage of raw materials.
The company unveiled the financial report for the July-December period of the fiscal 2023-24 on Tuesday through the Dhaka Stock Exchange (DSE).
According to the financial statement, its revenue stood at Tk3,995 crore in the six months to December.
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The company highlighted in its financial statement that it faced challenges in operating the factory at full capacity due to a shortage of raw materials stemming from the dollar crisis and difficulties in opening Letters of Credit (LCs), thereby affecting the timely supply of raw materials.
However, the company's net profit experienced a significant surge, reaching Tk186 crore in the last six months until December, marking a remarkable turnaround from the Tk110 crore loss incurred during the same period in the previous year.
Against the backdrop of high inflation and a foreign currency crisis, here's how the steel maker navigated the inflationary pressure through strategic measures. One such measure involved reducing the cost of production, while another entailed adjusting product prices to align with the increased costs of raw materials.
The company's financial statements reveal that the foreign exchange rate exhibited less volatility in the first half of the current fiscal year compared to the previous year. This stability played a pivotal role in enabling the company to achieve a staggering profit.
Meanwhile, the company's share price has steadfastly held at Tk90 each since October 2022, owing to the imposition of a floor price.
BSRM Limited has joined the group of listed companies with annual revenues over Tk10,000 crore in the last fiscal year, where the company earned Tk11,506 crore.
BSRM Steels
An associate company of BSRM Limited posted a staggering profit in the first half of this fiscal year.
During the period, its net profit was Tk154 crore, which was 16 times higher than the previous year at the same time.
But its revenue fell by 2% to Tk3,631 crore in the July-December period of the last year.
Besides, its share price jumped by 9.90% and closed at Tk63.30 each on Tuesday.
