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Bangladesh Lamps, widely known as BD Lamps, returned to profit in the second quarter (Q2) through December of FY25, after big losses in the same quarter a year before, riding on higher sales and optimization of operating expenses.
The electric and energy saving bulbs' manufacturer secured a profit of Tk 0.27 million in the quarter, as against a loss of Tk 46.4 million in the same quarter the year before.
The earnings per share (EPS) stood at Tk 0.03 in the Q2, while it was Tk 4.63 in the negative per share in the same quarter a year earlier, according to a stock exchange filing on Monday.
Following the news, the stock jumped 5.87 per cent to Tk 110 per share on the Dhaka Stock Exchange.
Higher sales and a reduction of cost contributed to the improvement in earnings in the second quarter, said the company in its earnings note.
The company's overall revenue surged almost 18 per cent year-on-year to Tk 477 million in October-December for an increase in sales of electric bulbs and energy saving LED bulbs.
Revenue from electric accessories also soared 37 per cent to Tk 213 million in Q2.
The company set up a new production line last year to manufacture plastic parts of tube lights at its existing factory, which contributed to the revenue growth, said an official of the company.
It invested Tk 111 million in the new production line, with bank loans, which also elevated interest expenses because of rising interest rates.
The company's short-term loans stood at Tk 1.27 billion as of December last year, up from Tk 1 billion in June that year.
Subsequently, its finance expenses jumped 56 per cent year-on-year to Tk 39 million in the quarter through December of FY25.
"The profit would have been much higher had the finance expenses not increased," said the official.
Half-yearly performance
Despite the return to profit in the second quarter, the company remained in the red for the six months through December last year as heavy losses in the first quarter wiped out the second quarter's profit.
The company reported a loss of Tk 58.6 million for July-December although revenue increased by 18 per cent to Tk 899 million.
Bangladesh Lamp's loss, however, was cut by 48 per cent year-on-year in July-December of the current financial year, owing to a decline in input costs and prices of materials.
The cost of sales, which included all associated costs to produce bulbs, stood at Tk 702 billion in July-December of FY25, which was 78 per cent of total sales during the time, down from 82 per cent of total sales in the same period last year.
The company managed to offset some of the costs, but failed to make a profit owing to higher finance costs.