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Eastern Lubricants Blenders Ltd., a state-owned lubricant blender and base oil importer, has reported a remarkable 150 per cent year-on-year profit growth in FY'23, driven by robust revenue.
The company made a Tk 28.58 million profit in FY'23, a substantial increase from Tk 11.33 million (restated) in the previous year.
Accordingly, its basic earnings per share stood at Tk 21.78, up from Tk 9.50 a year before, according to a disclosure published on Thursday.
This impressive performance is due to its occasional (on-demand) base oil import business, which helped the small-cap firm earn good revenue. However, the company is yet to publish its annual revenue data.
According to the company's unaudited financial statements, its revenue for the first nine months of FY'23 surged by an astonishing 478 per cent year-on-year, reaching Tk 304 million through March this year.
Moreover, Eastern Lubricants had procured base oil at a cheaper price from the international market and sold them to its only three buyers -- state-owned Padma Oil, Meghna Petroleum, and Jamuna Oil Company-- at an increased price.
The increased profit margin from base oil trading made a big difference for Eastern Lubricant Blenders, said an official declining to be named.
The company's first quarter (July-September 2023) revenue also went up 26 times year-on-year to Tk 140 million while net profit jumped 850 per cent to Tk 2.85 million.
The company has also diversified its business and distributed Yuasa-branded automotive batteries, bitumen and grease supplies to the subsidiaries of Bangladesh Petroleum Corporation (BPC).
At a meeting on Thursday, Eastern Lubricants board approved a strategic business agreement with KB Petrochemicals, a joint venture between Sena Kalyan Sangstha and a Mideast firm, for contract blending of lubricants.
Based on the profit growth, the board has declared 60 per cent cash and 10 per cent bonus dividend for FY'23. In the previous year, the company disbursed 40 per cent cash and 10 stock dividends.
The company will hold its annual general meeting (AGM) on December 4 on a digital platform. The record date is on February 3.
Listed in 1976, Eastern Lubricants' stock price soared 14 per cent in a month to close at Tk 2027.80 on Thursday.