eGeneration’s profit drops 25% in H1

Key Financials:

• The company's net profit was Tk4.87 crore in H1
• EPS stood at Tk0.81
• It posted a 16% YoY decline in profit
• In Oct 2020, BSEC allowed it to raise Tk15 crore through IPO

Just hours before making its stock market debut, eGeneration has posted a profit plunge in the first half of the current fiscal year.

The share trading of the system integration and software solutions company will begin on the Dhaka Stock Exchange (DSE) on Tuesday.

In its disclosure on Monday, the company reported a 25% year-on-year drop in profit in the first half of the current fiscal year.

The net profit stood at Tk4.87 crore and basic earnings per share (EPS) at Tk0.81, which had been Tk6.49 crore and Tk1.08, respectively.

The company – which has partnerships with global firms such as SAP, Microsoft, DELL, UiPath, Siemens, and Systran – also posted a 16% year-on-year decline in profit. The profit stood at Tk2.67 crore and basic EPS at Tk0.45.

At the same period of the previous fiscal year, its profit was Tk3.18 crore and basic EPS Tk. 0.53.

In October last year, the Bangladesh Securities and Exchange Commission (BSEC) allowed the company to raise Tk15 crore through an initial public offering (IPO) by issuing 1.5 crore shares at a face value of Tk10 each.

The IT firm will use the funds for purchasing business floor spaces, repaying loans and developing digital healthcare platforms.

The IPO subscription of eGeneration was held from 12-18 January. On 7 February, the IPO lottery draw was held online to allocate primary shares to general investors, and shares were credited to beneficiary owner (BO) accounts on 16 February.

eGeneration started its journey in 2003 as a private limited company and it converted to a public limited company in 2017.