Anwar Galvanizing Limited, a sister concern of Anwar Group, reported 476% growth in net profit in the first quarter of FY22.
Anwar Galvanizing Limited went into operation in the mid-1980s producing galvanised corrugated sheets.
The company was the country's first and leading manufacturer of GI Fittings and brake drums.
To meet the growing demand for GI fittings, the company halted producing brake drums in 2019.
During the July-September quarter, its net profit was Tk7.82 crore and earnings per share Tk5.13, which was Tk1.35 crore and Tk0.89 respectively.
Despite the surprising growth, the company was facing a cash crisis during the period. In the first quarter of FY22, its cash crisis per share stood at Tk0.77, which was Tk3.49 positive in the previous quarter a year ago.
A senior officer of the company said on seeking anonymity that the company had invested for business expansion. Besides, some dues are stuck to the clients.
Meanwhile, its board of directors declared 20% cash and 10% stock dividends for the shareholders for FY21.
In the last financial year, its earnings per share jumped by 103% to Tk3.92.
To approve the dividend the company will conduct the annual general meeting on January 12, 2022.
In FY20, it had paid 10% cash and 5% stock dividends.
Earlier, the company decided to double its production by investing Tk27.37 crore. It's planning to increase production to expand its market share of galvanised iron-pipe fittings (GI Fittings) from the existing 25% to 52%.
The demand for GI fittings has been increasing gradually in recent years due to the infrastructure development in both public and private sectors, said the company's senior officials.
Besides, the import of GI products from China had decreased significantly during the pandemic. As a result, the company is going to make new investments to grab the market, they added.
GI fittings are an important part of the construction and housing sector. The bulk of the local demand for these products is met by imports from China.
The new investment plan is expected to be in operation by the fourth quarter of 2022.
Anwar Galvanizing got listed on the Dhaka Stock Exchange (DSE) in 1996. Its paid-up capital is Tk15.24 crore.
Its share price jumped by 423% to Tk483 in the last year. At the end of the Sunday trading session, its share closed at Tk422.60 at the DSE.