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Jun 29, 2023

Eastern Cables returns to profit after four years

FE ONLINE REPORT Published : Updated : Share this news Eastern Cables, the state-run wire maker, returned to profit in the fiscal year 2021-22 after suffering losses in the past four fiscal years. The

FE ONLINE REPORT

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Updated :

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Eastern Cables, the state-run wire maker, returned to profit in the fiscal year 2021-22 after suffering losses in the past four fiscal years.

The cable manufacturer raked a profit of Tk 8.98 million in the fiscal year 2021-22 ended June as against a loss of Tk 124 million in the FY 2020-21.

As a result, earnings per share rose to Tk 0.34 for FY22 from a loss of Tk 4.68 per share in the previous year.

Accordingly, the board of directors has recommended 2.0 per cent cash dividend for the year ended June 30, 2022.

The Eastern Cables, a subsidiary of the Bangladesh Steel & Engineering Corporation (BSEC), has been incurring huge losses.

Eastern Cables got listed on the Dhaka Stock Exchange (DSE) in 1986. The company incurred huge losses in the past four years and failed to pay a dividend to its shareholders.

The company has reported net asset value per share of Tk 344.06 and net operating cash flow per share (NOCFPS) of Tk 0.45 for the year ended June 30, 2022 as against Tk 10.42 and Tk 8.14 respectively for the same period of the previous year.

The company has further informed that NAV per share is higher than the previous year due to asset revaluation of the company. The company’s revaluation surplus was Tk 8.80 billion.

“EPS is positive due to reducing overhead cost and increase of selling price of the product compared with the previous year,” said the company.

Meanwhile, the state-owned cable and conductor manufacturer has started to export wire to China worth $4.20 million as per the deal signed with the China National Technical Import and Export Corporation in early July this year.

Located in Chattogram, Eastern Cables is the biggest cable and conductor manufacturer in Bangladesh. It produces PVC insulated and PVC sheathed single-core and multi-core low-tension domestic cables. The production line also includes electric controls and aluminium conductors.

Listed in 1986, its shares plunged 11.42 per cent to close at Tk 20320 on Wednesday.

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