BD Lamps logs big loss in Q2

Electric bulb producer Bangladesh Lamps Limited – commonly known as BD Lamps – posted a big loss in the second quarter of the current fiscal year 2023-24 due to an increase in material costs and finance costs.

In the October-December quarter, the net loss of the company stood at Tk4.64 crore, which was a profit of Tk1.63 crore in the same period a year ago.

During the quarter, the revenue of the company dropped by 19.12% to Tk39.95 crore from Tk49.50 crore compared to the same period of the previous year.

But the quarter, the cost of sales stood at Tk32.45 crore against Tk37.42 crore a year ago.

The company in its disclosure on the stock exchange said profit has dropped due to a decrease in sales revenue, and an increase in material costs and finance costs.

Its net operating cash flow per share has declined due to a decrease in sales and collections, a substantial increase in inventory, and a lower gross margin.

Besides, the net asset value per share has also dropped mainly due to an increase in short-term finance, according to the disclosure.

In the second quarter, its per-share loss stood at Tk4.63, which was earnings of Tk1.63 in the same period of the previous year.

In the July-December period, its finance cost increased by 47% to Tk4.98 crore from Tk3.39 crore compared to one year ago.

In September last year, the company set up a new production line for manufacturing plastic parts of tube lights at its factory in Narsingdi.

The estimated cost of the project was Tk1.11 crore. The company said the cost of the project will be arranged through bank borrowings.

BD Lamps, which was listed on the stock exchanges in 1981, manufactures Philips lighting products under an exclusive licensing agreement with Philips Electronics NV Holland.

It also manufactures electric bulbs, CFLs, tube lights, and other lighting products under the Transtec brand.

As of 31 December 2023, sponsors and directors jointly held 61.86% shares, institutions 6.61%, foreign investors 0.03%, and general investors 31.50% of the company.  

The share price of the company stood at Tk191.80 at the closing on the Dhaka Stock Exchange today.