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Eastern Housing (EHL) has registered a 14 per cent year-on-year growth in profit for the first quarter through September of FY23, backed by increased revenue earnings.
The revenue earnings were derived from sales of lands and apartments. The year-on-year revenue growth from selling lands was 10 per cent, while the growth of revenue from apartment sales went up 45 per cent for the quarter, compared to the same quarter of the previous fiscal year.
Company secretary Selim Ahmed said the apartment segment had higher revenue growth due to sudden payments in large amounts.
The rise in finance income and a decline in finance expenses helped the company secure a growth in profit. A cut in the administrative and selling expenses also played a positive role in Q1 of FY23.
Company secretary Mr. Ahmed said the realtor had refrained from aggressive investments in the new projects of apartments due to a price hike of raw materials.
"That's why a good amount of fund was injected into FDRs (fixed deposit receipts) that enhanced the finance income."
The administrative and selling expenses declined 1.67 per cent for July-September, FY23 from the same period a year earlier.
For July-September FY23, the company's earnings per share (EPS) stood at Tk 1.18, increased from Tk 1.04 for the same period of the previous fiscal year.
The operating cash flow, however, turned negative in the reporting period since cash collection against plot sales dropped significantly because of registration difficulties.
Meanwhile, the stock peaked at Tk 124.30 on April 30 this year from Tk 73.30 on December 27 last year.
Later, it came down to Tk 78.60 on August 16 and finally closed at Tk 89 on Tuesday on the Dhaka Stock Exchange (DSE).