Company profile: MJL dividends remain steady in three years

MJL Bangladesh, the country's largest lubricant company, distributed almost same amount of dividends in last three fiscal years (FY) amid its mixed performance observed in EPS during the same period.

The company distributed 45 per cent cash dividend for the year ended on June 30, 2019.

It distributed 45 per cent cash and 5.0 per cent stock dividend for the FY 2018 and 45 per cent cash dividend for the FY 2017.

The consolidated EPS (earnings per share) reported by MJL Bangladesh varied from Tk 5.87 to Tk 7.0 between the FY 2017 to FY 2019.

MJL Bangladesh reported its consolidated EPS of Tk 6.91 for the FY 2017, Tk 7.0 for the FY 2018 and Tk 5.87 for the FY 2019, according to the company's annual report.

The company's consolidated net asset value (NAV) per share was Tk 35.64 in the FY 2019, Tk 37.49 in the FY 2018, Tk 34.93 in the FY 2017 and Tk 35.51 in the FY 2017.

Meanwhile, the company's consolidated EPS rose marginally for October-December, 2019 compared to same period of the previous year.

MJL Bangladesh reported its consolidated EPS of Tk. 1.56 for October-December 2019 against Tk. 1.46 for October-December 2018.

The consolidated EPS was Tk. 3.11 for July-December 2019 against Tk. 2.82 for July-December 2018.

In last five fiscal years, the performance of MJL Bangladesh was mixed in other financial indicators.

The company's revenue from operations rose steadily from the FY 2015 to the FY 2019. The consolidated revenue was above Tk 8.54 billion in 2015, above Tk 10.04 billion in 2016, above Tk 13.97 billion in 2017, above Tk 17.51 billion in 2018 and above Tk 20.29 billion 2019.

For the year ended on June 30, 2019, the company reported a consolidated net profit of above Tk 2.10 billion which was Tk 2.29 billion for same period of the previous year.

The company's consolidated net profit was Tk 2.15 billion in the FY 2017, Tk 1.72 billion in the FY 2016 and Tk 829 million in the FY 2015.

The amount of tax and VAT paid by MJL Bangladesh was above Tk 1.37 billion in the FY 2015 above Tk 1.31 billion in the FY 2016, above Tk 1.68 billion in the FY 2017, above Tk 1.65 billion in the FY 2018 and above Tk 1.84 billion in the FY 2019.

The current ratio reported by MJL Bangladesh was 1.05 in the FY 2015, 0.89 in the FY 2016, 0.85 in the FY 2017, 0.70 in the FY 2018 and 0.76 in the FY 2019.

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximise the current assets on its balance sheet to satisfy its current debt and other payables.

The company possesses significant ownership in two companies, which are its subsidiaries such as Omera Petroleum Limited (62.50 per cent share) and Omera Cylinders Limited (98.77 per cent share).

The products of MJL Bangladesh, a joint venture between government-owned Jamuna Oil Company and EC Securities, are used in the transport industry, industrial sectors, marine industry and aviation sector.

According to the company's annual report, the MJL Bangladesh has 4,500 active industrial customers, 13,500 active retail customers and above 1,000 digital sales customers.

MJL Bangladesh, presently an 'A' category company, was listed on the stock exchanges in 2011. The company's sponsor-directors hold 71.53 per cent shares, institutions 19.06 per cent, foreign shareholders 0.29 per cent, and general shareholders 9.12 per cent as of February 29, 2020.

The company's share price closed at Tk 65.30 each on March 25, the last trading day, with a marginal rise of 0.62 per cent or Tk 0.4 on the Dhaka Stock Exchange (DSE).

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