Quasem Industries Limited has posted a 107% growth in profit driving on the capital gains in 2020-21 fiscal amid the pandemic.
Half of the profit came from the government compensation for acquiring some land in Tangail.
In FY21, the country's largest dry cell battery manufacturer made a Tk9.16 crore profit; of which, Tk4.59 crore came as capital gains from the government.
In the previous fiscal year, its net profit was Tk4.41 crore.
Besides a variety of dry cell batteries, Quasem Industries manufactures battery-operated products, flashlights, air fresheners, shaving foam, and aerosol.
Officials said the company has done better business despite the disruption due to the pandemic. Overall, government compensation has contributed to a jump in profit.
Although the profit rose significantly, the company has recommended a 10% stock dividend, and after issuing bonus shares, the retained earnings will be used as capital.
It said such bonus shares will be issued upon approval from the Bangladesh Securities and Exchange Commission (BSEC).
In this fiscal year, the company has discontinued the trading relationship with its sister concern Quasem Lamps.
The mother company Quasem Industries will earn from services of its sister concerns.
Due to these reasons and the pandemic, which broke out in March last year, its revenue dropped 22% in the July-March period.
Industry sources said, owing to expansion of technology in the country, the demand for dry cell batteries has been on the wane for recent years.
Taking this into consideration, Quasem Industries has diversified its business and is entering the consumer products sector.
An official, seeking anonymity, said the company will expand its business portfolio by diversifying products.
In the reported period, dry cell battery sales have increased compared to the previous year, he said.
On Tuesday, the company said its board of directors has recommended 10 bonus shares for every 100 shares.
In the previous fiscal year, it had paid 5% cash and 5% stock dividend.
The earnings per share (EPS) stood at Tk1.39 in FY21, which was Tk0.67 the previous year.
To get the dividends and annual financials approved, the annual general meeting (AGM) will be held on 25 November while the record date has been fixed for 3 November.
The net asset value (NAV) stood at Tk201.32 crore, which was Tk195.29 crore in the previous year.
The company also said it expects to start commercial production of 100% export-oriented Artificial Quartz products in 2021-22 fiscal.
Also, it will introduce new products in Can-making units to increase the sales of existing products.
In the future, the company will build and operate a modern hospital in Dhaka city.
Quasem Industries started its journey in the 1980s as the first ISO-certified dry cell manufacturer.
Now it is the market leader with the popular brand - Sunlite - with 75% market shares.
It was listed on the Dhaka Stock Exchange (DSE) in 1989.
In fiscal 2019-2020, its net revenue fell 26% and net profit 9.44% compared to the previous year.