Chattogram-based business conglomerate BSRM, which has maintained its dominant position in Bangladesh's steel sector for years, has reported astounding growth in profit as its finance and management cost decreased.
The consolidated sales of Bangladesh Steel Re-Rolling Mills Limited (BSRM Ltd) increased 4% to Tk4,216.09 crore in the first three quarters of FY21 compared to the same period in previous year.
During this period, its consolidated net profit also grew by 248% to Tk273.16 crore and earnings per share stood at Tk10.93.
The company's sales have gone up by 1,258% to Tk8,311 crore over a decade till fiscal 2019-20.
It has been providing rods to various government megaprojects. Its production capacity has reached seven lakh tonnes annually.
BSRM Ltd Company Secretary and General Manager Shekhar Ranjan Kar told The Business Standard, "Despite the steel price hike, the demand for steel increased in the first three quarters of this fiscal year. Besides, low interest on loan and reduced management cost also helped the group to post such growth."
BSRM Steels Ltd
BSRM Steels Ltd was set up to produce billets to averse the risk of potential loss from volatile billet prices in the international market.
Currently, the BSRM Limited holds a 44.97% equity share of the BSRM Steels, whose annual production capacity is 8.62 lakh tonnes. Most billets produced by it has been consumed by BSRM Ltd.
BSRM Steels' sales grew by 24% in the first nine months of the 2020-21 financial year, and its profits jumped by 260%, compared to the same period previous year.
Its sales in the first three quarters of the current financial year was around Tk4,078 crore and it registered a net profit of Tk258.61 crore.
During this period, its earnings per share stood at Tk6.88.