GPH Ispat Ltd has recorded a noteworthy profit of Tk 64.31 crore during the period from July to March of the current fiscal year, attributing this success to the relative stability in the exchange rate, which has helped curtail expenses related to raw materials imports.
Compared to the same period last fiscal year when the steel manufacturer suffered losses amounting to Tk 31.50 crore, this marks a significant turnaround. Earnings per share (EPS) for January-March stood at Tk 1.01, slightly lower than Tk 1.11 from the corresponding period.
The EPS for the first three quarters of 2023-24 rose to Tk 1.33, a notable improvement from a negative Tk 0.65 in July-March of 2022-23.
According to Md Mosharof Hossain, the company secretary of GPH Ispat, the relative stability in the exchange rate has led to a reduction in financing costs, which dropped to Tk 363 crore during the nine months compared to Tk 412 crore a year earlier. Additionally, decreased freight costs and a decline in raw material prices have contributed to the favorable financial outcome.
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Hossain remarked, “This helped us achieve profitability despite the fact that revenue levels remained relatively unchanged.”
The taka experienced a depreciation of approximately 20 percent between February 2022 and June 2023 due to the surge in global commodity prices spurred by the Russia-Ukraine conflict. However, in the current financial year, the exchange rate has stabilized around Tk 110.
GPH Ispat reported earnings of Tk 4,413 crore in July-March of FY24, a slight increase from Tk 4,410 crore in the same period the previous year.
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The net asset value per share dipped to Tk 51.90 as of March 31 this year, down from Tk 53.08 on June 30 last year.
On the Dhaka Stock Exchange, GPH Ispat shares closed 9.77 percent higher at Tk 28.10 yesterday, reflecting investor confidence in the company’s performance.
