Beximco suffers Tk70cr loss in September quarter

Beximco Limited reported a loss of Tk70 crore in the July–September quarter, attributed to rising production costs caused by increases in electricity and gas tariffs.

Its net profit was Tk335 crore in the same period a year ago.

In a Dhaka Stock Exchange (DSE) filing, the company reported a slump in revenue by over 70% year-on-year to Tk581 crore in the first quarter of fiscal 2023-24.

In a price-sensitive statement, Beximco Limited attributed the abnormal revenue decrease to declining export and local demand, increased cost of production due to disruptions in the international supply chain resulting from a dollar crisis, and the conflict in Russia and Ukraine.

The statement also mentioned that the price hikes in gas and electricity led the company to incur losses in the first quarter.

According to industry insiders, the price hikes in gas and electricity caused a 75% increase in energy costs for industries, and the devaluation of the taka raised raw material prices by 20-25%.

Beximco shares are stuck on the floor price at Tk115.60 each at the DSE. On Monday, only two shares of the company were traded.

Beximco Pharmaceuticals

Beximco Pharmaceuticals Limited's profit increased by 11% to Tk156.74 crore in the first quarter compared to the same period a year ago.

Besides, its revenue also grew over 14% to Tk1,115.93 crore in the July–September quarter compared to the previous year at the same time.

Nazmul Hassan, managing director at Beximco Pharma, said on the London Stock Exchange website, "Amidst challenges, we delivered strong growth in revenue in this first quarter. The ongoing macroeconomic headwinds, especially the devaluation of currency and high inflationary pressures, weigh on our bottom line and somewhat overshadow our accomplishments.

"That said, we remain confident in the strength of the business and our strategy as we continue to focus on growth through the delivery of high-quality, affordable medicines to patients."

Despite its posting growth in revenue and profit, its shares remain stuck on the floor price at Tk146.20 each at the country's premier bourse. On Monday, its 40 shares were traded at the floor price.

Shinepukur Ceramics

Shinepukur Ceramics Limited's profit dropped by 93% to Tk0.09 crore in the first quarter of the current fiscal year compared to the same period a year ago.

Besides, its revenue also decreased by over 2% to Tk47.98 crore in the July–September quarter compared to the previous year at the same time.

The company said in its statement that revenue decreased due to low demand for exports. Its export sales declined by 11.23% during the quarter compared to the previous year.

The statement also said a business cost hike pulled down the profit of the company.