MJL posts record quarterly revenue, profit

MJL Bangladesh has posted its highest-ever revenue and profits for the July-September period. 

The company's consolidated revenue rose to Tk1,245 crore in the latest quarter, from Tk917 crore for the same period last year, according to its financial statements.

Its consolidated profit after all taxes too hit a new high of Tk113 crore, up from Tk90.7 crore for the same quarter last year. April-June of 2023 was the quarter the company had its previous highest profit of Tk103 crore.

Consolidated figures include those of all subsidiary companies.

The parent company MJL Bangladesh operating lubricant and oil tanker business contributed Tk335 crore to the quarterly consolidated turnover, up from Tk313 crore a year ago. 

Due to the political unrest, lubricant consumption was slightly down in the country, MJL Managing Director Azam J Chowdhury told TBS. "However, our consistency in uninterrupted supply of quality products helped us outperform the market and strengthen our market leadership in the lubricant business." 

According to him, alongside the retail automotive segments, the company's lubricant unit has many loyal industrial customers. A supply disruption in the market helped MJL sell more as it outperformed competitors inconsistent supplies. 

Lubricants making 71% of the parent company revenue saw a 4% year-on-year growth, while oil tanker revenue grew by 17%, according to MJL Head of Finance Md Zamiur Rahman. 

The sales of oil transportation services to the oceans grew by around 7%, while the depreciated taka further boosted the revenue in local currency terms, he added. 

MJL's market-leading liquefied petroleum gas (LPG) subsidiary Omera and its wings secured a quarterly revenue of over Tk910 crore, although its profit contribution was meagre.

Of the Tk113.2 crore consolidated profit after taxes, over Tk99 crore was from the parent company. 

"LPG, due to stiff competition and the government-controlled pricing, is at the bottom of our segment-wise profitability table," said Azam J Chowdhury. 

Omera, however, is trying to increase its profitability through its industrial LPG solutions amid a gas crisis in the country. 

The energy regulator only fixes the cooking gas prices while industrial LPG prices are subject to negotiations between buyers and sellers. 

At the end of September, MJL Bangladesh's consolidated net asset value per share stood at Tk51.46. Quarterly consolidated net profit per share stood at Tk3.34, up from Tk2.7 a year ago. 

The company recently posted a consolidated EPS of Tk8.71 for the fiscal year ended in June, slightly down from Tk8.73. 

MJL shares having a face value of Tk10 closed 2.31% higher at Tk101.7 apiece on the Dhaka Stock Exchange yesterday.