Investors park money in potential IT firms 

Digital connectivity across the country has brought a bright opportunity for the Information and Technology (IT) sector and to avail of the opportunity, investors have parked money here.

Eleven IT companies have already been listed on the Dhaka Stock Exchange (DSE), the prime bourse of the country.

In the last several months, the share prices of the companies climbed as investors showed interest in them. But in early November, investors witnessed a price correction due to selling pressures to book the quick profit from the risk-averse investors.

However, the sector is back on the gaining track as the investors did not lose their interest. On Monday, investors got the highest return of 4.2% from the IT sector at the DSE.

A senior analyst from a reputed brokerage firm said to build a digital Bangladesh, the government has been emphasising Internet connection and IT services all over the country.

Besides, work is underway to set up IT parks all over the country and there is a lot of publicity from the government about its benefits. As a result, the number of Internet users has increased significantly in the last two years, he added.

In addition, the use of digital platforms in government and non-government organisations has increased owing to the coronavirus pandemic. This suggests that the IT sector will be in a better position in the future. So many investors are showing interest in this sector, the analyst further added.

He said that although there is room for improvement, some listed companies are lagging in this business. Although the profit of almost everyone increased in the first quarter of the current financial year, the revenue did not increase in that way. Entrepreneurs are lagging mainly due to a lack of knowledge and skilled manpower in the IT sector.

Henry Hilton, managing director of ADN Telecom, said in its financial statement, the business has shrunk as many offices have been closed due to Covid-19. Now the business is turning around. Hopefully, the business will be better in the days ahead.

Information Services Network, the country's first internet service provider, has been struggling for the last decade.

In the first quarter of the current financial year, the company reported only Tk2 crore in revenue and Tk14 lakh in profit.

But, the share price of HRC Group's associate company has risen 24% in the last four days.

In the last financial year, the company has written off Tk9 crore due from its customers from the financial report. This has reduced the net asset value of the company.

But, the company does not need to maintain a provision against the owed money. So in the first quarter, the company's profit has increased 12 times.

A senior official of the company said on condition of anonymity that the company is in a fragile state now due mainly to the incompetence of the owners.

"But now there is new leadership in the management of the company. As there is a huge potential for improvement in the IT sector, the owners are also paying attention now," he added.

Intech Limited, another old company, got new leadership at its helm and it is now owned by members of S Alam Group. It is hoped that under their leadership the company will turn to the IT business, its officials said.

Meanwhile, eGeneration, Genex Infosys, ADN Telecom, Aamra Technologies, Aamra Networks, BDCOM Online and IT Consultants are doing well in the sector.