Kay & Que (Bangladesh) Limited – a publicly listed CNG filling station that also sells stones – has reported a 76% plunge in its net profit in the January to March quarter of the ongoing 2022-23 fiscal year, compared to the same quarter of the last fiscal.
In the quarter, the company's net profit stood at Tk5.66 lakh, which was Tk24 lakh in the March quarter of FY22. Its earnings per share (EPS) stood at Tk0.11.
During the nine months from July 2022 to March 2023, the EPS was Tk0.36.
According to a disclosure by the company on the Dhaka Stock Exchange (DSE) website on Tuesday, its profit fell mainly because of a decline in revenue from both its CNG and stone businesses.
Merger with ICT-based firm
Kay & Que currently has one CNG unit. It started its stone business in 2018. Besides, the company has leased its vacant land and office to CG Foods (Bangladesh) Ltd.
And now, in its DSE disclosure, the company has informed of merging with MultiSourcing Limited – an ICT-based firm – with the hope that income from the ICT wing will boost profits which will subsequently make a positive impact on the shareholders' interest.
As per the Amalgamation Scheme, Kay & Que shall issue 1,708,275 new ordinary shares at Tk10 each in favour of the existing shareholders of MultiSourcing Limited. The amalgamation has been approved by the High Court and is subject to necessary filing before the Bangladesh Securities and Exchange Commission.
Currently, the company's paid-up capital is Tk5.15 crore, which will increase to Tk6.85 crore after the merger.
As of 31 March 2023, the company's sponsors and directors jointly held 31.77% shares, institutions 7.13%, and the general public 61.10%.
The last trading price of each share of the company on the DSE was Tk223.4 on Tuesday.