Dominage Steel rejects TV report of factory shutdown, admits business slowdown

Dominage Steel Building Systems has rejected a media report claiming its factory had remained shut, though it acknowledged a slowdown in business.

In response to an investigative report aired by a national TV channel, the company expressed confidence that it would rebound once political stability returned. The response was made public through a stock exchange filing on Tuesday.

The TV broadcast featured a visit to Dominage Steel Building Systems' manufacturing plant, where a journalist found the facility closed. In the broadcast, locals alleged that the plant had been shut for an extended period.

Following the report, the Dhaka Stock Exchange (DSE), the country's premier stock market regulator, sent a query to the company on Sunday, seeking clarification. The firm responded with a written statement, which the DSE released to the public as price-sensitive information.

In its statement, the company explained that, as an engineering and construction firm, most of its activities take place at client sites. Only a portion of the work-such as mild steel fabrication-is carried out at its manufacturing facilities. While most operations are now conducted at its automated Ashulia plant, the journalist visited the company's Narsingdi plant, which relies more on manual processes and is not regularly active. The company said this may have led locals to provide misleading information.

The company also acknowledged that its business had been in distress due to the COVID-19 pandemic and subsequent economic challenges.

"Our projects have declined significantly due to economic pressure. As we do not produce daily consumer goods, judging our business solely by day-to-day activity is not the proper way," said Managing Director Engr. Mohammad Rafiqul Islam in the letter.

Following the publication of the clarification, the company's share price rose by 1.6 per cent to Tk 19.1 on Tuesday compared to the previous day on the Dhaka Stock Exchange.

Dominage Steel Building Systems manufactures pre-engineered steel building structures and provides architectural design, structural design, project management, and reinforced cement concrete construction services.

Since its listing in November 2020, however, the company has delivered poor returns to investors and delayed the utilization of its IPO proceeds.

The company floated 30 million ordinary shares at Tk 10 each, raising Tk 300 million in 2020, with plans to construct new buildings, install electrical facilities, and acquire plants and machinery. These projects, originally scheduled for completion by 2022, were delayed and finally completed in November 2024 after a two-year extension.

The company reported a profit of Tk 92.27 million in FY20, the year of its listing, which fell sharply to just Tk 2.83 million by FY24.

However, in the first nine months of FY25, it posted a notable recovery, recording an unaudited profit of Tk 10.29 million-10 times higher than in the same period a year earlier.

Amid this recovery, the company's share price surged 78.5 per cent within just two months, rising to Tk 19.1 from Tk 10.7. However, this sharp rally pushed its price-to-earnings ratio to 636 based on audited financials, while the P/E ratio based on unaudited profit stood at a lofty 130.

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