Higher utility, raw material costs dent Coppertech's FY23 profit

Coppertech Industries – a manufacturer of copper products – has reported a significant 64% decline in net profit for the fiscal 2022-23 due to the increase in utility and raw material prices.

According to its financials, its net profit stood at Tk3.99 crore, compared to Tk11.24 crore in the previous fiscal year. The earnings per share (EPS) was Tk0.61, down from Tk1.78 in FY22.

As a result of the profit decline, the company has recommended a 2% cash dividend only for its general shareholders. In the previous fiscal year, the company had paid an 8% dividend, comprising 4% cash and 4% stock dividend to its shareholders.

In a stock exchange disclosure, the company explained that its EPS decreased due to a decline in revenue. Conversely, the increased costs for fuel, electricity, and raw materials, among other factors, have further reduced the gross profit margin.

The annual general meeting (AGM) is scheduled to be held on 25 January 2024, and the record date has been fixed on 21 December.

Revenue increased in Q1, but profit fell

In the first quarter of the current fiscal year, the company has reported a 48% growth in revenue to Tk17.86 crore. However, its net profit after tax fell by 31% to Tk72 lakh compared to the same period of the previous fiscal year.

The company stated that its EPS declined due to higher production costs for fuel, power, and raw materials, along with an increase in operating and finance expenses, which impacted net profitability.