Publicly listed cable manufacturer BBS Cables Ltd saw a whopping 88% year-on-year decline in its profits for the fiscal 2022-23, despite posting a slightly higher revenue.
The company attributes the profit plunge to the devaluation of the taka against foreign currencies, which significantly increased the company's cost of goods sold.
In FY23, BBS Cables earned a revenue of Tk655 crore, which was Tk628 crore in the previous fiscal.
Its net profit after tax stood at Tk9.74 crore at the end of FY23, from Tk80.77 crore previous year.
Seeking anonymity, an official at BBS Cables said although the price of raw materials increased meagrely, the exchange rate has been very high over the last fiscal.
Also, the bank limited the opening of letters of credit (LCs) during the fiscal, he added.
"Although its cost of goods sold increased, the company could not raise the price of its products much because of high competition in the market."
During FY23, there was also a slowdown in government buy orders that make a big portion of revenue, the official added.
BBS Cables recommended a 2% cash dividend for FY23. To approve the dividend and audited financial report, the company has set its annual general meeting (AGM) on 23 November. To identify the shareholders entitled for the dividend, the record date has been set on 22 October.
The company's restated earnings per share stood at Tk0.46, and restated net asset value per share at Tk32.99 at the end of FY23.
BBS Cables was incorporated in 2009, went into commercial operations in 2011, and enlisted on the bourses in 2017. The company raised Tk20 crore through an initial public offering to expand its business.
The last trading of the company's shares at the Dhaka Stock Exchange was Tk49.90 apiece on Wednesday.
As of 31 August 2023, sponsors and directors jointly held 30.98%, institutions 21.22%, foreign investors 0.46%, and general investors 47.34% shares of the company.