Bangladesh Building System profit jumps on share sale gains

The profit of Bangladesh Building System has jumped significantly to Tk23.14 crore in the first nine months of the current fiscal year riding on gains from the sales of shares of its associate company.

The prefabricated steel structure manufacturer, which got listed on the capital market in 2013 – had reported Tk1.55 crore in profit in the same period of the previous fiscal year.

It also saw a jump in revenue thanks to an increased demand for the product, said sources in the company.

According to the unaudited financials, in the January-March quarter, its profit rose to Tk7.53 crore compared to a net loss of Tk1.89 crore a year ago due to the Covid-19 pandemic.

The revenue jumped by 37% to Tk30.51 crore from Tk22.28 crore in the same quarter of fiscal 2020-21.

According to its half-yearly financials, in the July-December period, the company earned Tk13.85 crore from share sales of its associate.

In the third quarter, it also sold a significant portion of shares of BBS Cables – an associate firm of the company – through the stock exchange.

But the Bangladesh Building Systems did not disclose how much the company had earned.

The principal activities of the company are manufacturing and marketing pre-engineered steel buildings in Bangladesh to meet the growing demand, especially in the industrial sector.

In fiscal 2020-21, the company had incurred a loss owing to a drop in its other income and non-operating income, and an increase in expenses during the pandemic.

It deals with pre-engineered steel buildings like factories, warehouses, hall rooms, workshops, aircraft hangers, office buildings, commercial showrooms, distribution centres, supermarkets, restaurants, and residential buildings as well.