BBS Cables – the second-largest cable manufacturer in the country – witnessed a decline in revenue and profit in the third quarter of the current fiscal year following a drastic drop in government tender.
During the January-March period, its revenue fell by 12% to Tk114 crore, and profit (after tax) by 37% to Tk13 crore compared to the same period of the previous fiscal year.
Despite the fall in revenue, its selling and distribution expenses surged by 75% to Tk7.73 crore, up from Tk4.41 crore in the January-March of 2020-21.
Up to 40% of the revenue of BBS Cables comes from the sale of products to government companies and the rest to corporations and retailers. The company's revenue and profits plummeted in 2020-21 due to the Covid-19 epidemic.
In the first nine months of the current financial year, its revenue decreased by about 10% and profit decreased by 19%. During the period, its total revenue was Tk441.86 crore which was Tk490.42 crore in the same period last year.
The profits fell to Tk63.78 crore from Tk78.88 crore in the previous year.
BBS Cables Company Secretary Golam Habib told TBS, "Last year, the government did not invite any tender for purchase, which led to a drop in our revenue. At present, production is going on for work orders received earlier, which increased the selling and distribution expenses."
BBS Cables was listed on the stock exchange in 2017. In 2020-21, it paid a 15% dividend to the shareholders, of which 10% in cash and 5% in bonus.