BBS Cables Ltd is planning to start exporting cables once the Covid-19 pandemic subsides, says its newly elected Chairman Md Abu Noman Howlader.
At the third-quarter earnings call held online on Tuesday, he said the company had plans to export products earlier but could not do so because of the pandemic.
He said the company was already producing cables following international standards, but international certificates were needed for exports.
"We have already applied to Germany and France for certification. They said the process was almost complete."
The company's Managing Director Md Badrul Hassan, Chief Financial Officer Aminul Islam, and Company Secretary Nazmul Hasan were present at the earnings call. Aminul presented the third-quarter financials.
In the first nine months of the current fiscal year, BBS Cables revenue and net profit dropped by 20% to Tk490.42 crore and 31% to Tk78.67 crore respectively, compared to the same period of the previous fiscal year.
Noman said they sell a major portion of their products to the government through tenders, but public procurement was slow due to the pandemic.
"That is why we could not achieve growth," he said.
Badrul said they had received a good response from retail customers and could manage growth from that segment.
He said they were planning to set up more sales centres across the country to make products available to local customers in all areas.
Responding to a shareholder's question, the chairman said they have no dispute with the securities regulator.
He said the company had been fined for not disclosing price sensitive information, but that had not actually been the case.
"Later, we gave a proper and satisfactory explanation to the Bangladesh Securities and Exchange Commission. Then they waived our fines," he added.
A board member of the company resigned recently and sold all his shares. The four other board members bought those.
Speaking about this, the chairman said the company had five sponsors when it was founded, but one of them resigned due to physical condition and family matters.
"There was no conflict among us."
He also said the company was trying to lead the electrical and electronics market.
BBS Cables paid 10% cash and 10% stock dividends for the fiscal year 2019-20.
The cable industry market is around Tk10,000 crore. Domestic companies can manufacture cables worth Tk7,000 crore and the rest is imported. Around 120 local companies meet more than 90% of domestic demand.
BRB Cables is the market leader in the cable industry. BBS Cables, which holds the second position, manufactures around 18 types of cables, such as aluminum, silicon, power, railway signaling, submersible and flexible cables, telecommunication cables, and so on.