Bashundhara Paper Mills saw a 70% increase in export in the 2019-20 fiscal year, with the company earning a net profit of Tk28.58 crore at the end of the year riding on exports.
The company's income fell by 23% in FY20 while net profit was over 2% less than that of the previous fiscal year.
Bashundhara Paper Mills holds over 10% of the paper market share and leads the tissue market. Its earnings fell as educational institutions were closed due to the Covid pandemic.
The company was listed in the stock market in 2018. It issued shares in the book building method and raised Tk200 crore from the market.
It produces paper and tissue in three units in Meghnaghat and Munshiganj's Gajaria.
Company sources said year-end profits did not decline much despite the fall in sales. In 2018-19 fiscal year, profit was Tk29.18 crore, slightly up from Tk28.58 crore in FY20.
Moreover, the earnings per share was Tk1.64 which was Tk1.68 in the previous year.
An official of the company told The Business Standard earnings had dropped during the pandemic but profits rose as the distribution cost of products was low.
"We had to pay less in taxes. Even though earnings fell at the end of the year, profits were not affected that much."
In FY20, the company earned Tk854.44 crore, down from Tk1,103.91 crore in the previous financial year.
In fiscal year 2019-20, the company earned Tk438 crore from paper sales, which was Tk618 crore in the previous year. Also, it made Tk218 crore from sales of tissue, down from Tk426 crore a year ago.
Bashundhara Paper Mills produces tissue, hygiene and paper products. Tissue products include facial tissue, paper napkin, pocket wallet and kitchen tissue. Hygiene products include diaper, diapant, diacare and sanitary napkin.
The company makes writing paper of different sizes, packaging paper and specialised paper.
There was a big increase in the company's exports of paper and tissue although local business of these products was down. The countries in the Middle East are the key export markets of the products. In addition, paper and tissue are exported to India, Nepal, Bhutan, the UK, Malaysia, Singapore, South Korea and several other countries.
In the last fiscal year, export earnings from these products reached Tk73.82 crore. Of the amount, Tk14.24 crore came from paper, Tk59.48 crore from tissue and Tk12 lakh from hygiene products. In FY19, the company's export income was Tk43 crore.
The annual demand for paper in the country is 10 lakh tonnes. Bashundhara Paper Mills can supply 1.17 lakh tonnes, which is around 11% of the total demand.
The country has an annual demand of 3,200 tonnes of tissue. Bashundhara Paper Mills fills 75% of the total demand while 5% is imported from abroad. The rest of the demand is filled by different local companies.