Index Agro sees profits decline

KEY FINANCIALS

• Profit declined 24% in Q2 of FY21, compared to Q2 of FY20
• Net profit was Tk5.98 crore
• EPS stood at Tk1.54
• Net profit was Tk13.10 crore in H1 of FY21
• EPS was Tk3.36 in H1
• The company raised Tk50 crore through IPO

Just a few hours ahead of its share trading commencement, Index Agro Industries Limited has reported a 7% year-on-year decline in profit in the first half of 2020-2021 fiscal year.

In the October-December quarter, the company posted a 24% lower profit compared to the same period of the previous fiscal year.

The poultry and fish feed producer has raised Tk50 crore from the stock market with the book-building method through an initial public offering (IPO).

Its share trading will start on both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) today.

On Tuesday, the company disclosed its financial statement of the second quarter ending on 31 December.

The unaudited financial statements show its net profit stood at Tk5.98 crore, and basic earnings per share (EPS) stood at Tk1.54.

During the same period in the previous fiscal year, its net profit was Tk7.85 crore and basic EPS stood at Tk2.01.

In the first six months of FY21, net profit of the company was Tk13.10 crore and basic EPS Tk3.36. It was Tk14.11 crore and Tk3.62 respectively for the same period in the previous fiscal year.

Last year on 10 September, Index Agro got regulatory approval for determining the cut-off price for eligible investors (EI).

The cut-off price was set at Tk62 for eligible investors, while general investors got the shares for Tk50 at a 20% discount.

AFC Capital Limited and EBL Investments Limited are the joint issue managers for the company's IPO.

Index Agro Industries Limited was incorporated in Bangladesh in 2000. The company started commercial operations in 2004.

Though it has no subsidiary company, it has an associate company named X-Ceramics Ltd which is engaged in manufacturing ceramic tiles in Bangladesh.