eGeneration profit hits four-year high on growing demand for IT services
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eGeneration Ltd posted a profit of Tk 108.75 million in fiscal year 2022-23, the highest in four years, driven by the increasing demand for software and IT-enabled services, as more and more local business entities are embracing automation.
eGeneration is a software development and implementation, management consulting, technology services and outsourcing company in Bangladesh.
The IT company reported earnings per share (EPS) of Tk 1.45 for the FY'23 as against Tk 1.43 a year ago, according to a filing with the stock exchange.
Although the year-on-year profit growth was less than 2 per cent, it was the highest profit in four years since the FY'20.
At a meeting on Tuesday, the board of directors of the company declared 10 per cent cash dividend for only general investors for FY'23. The general shareholders hold 46.67 million shares, out of 75 million in total.
The declaration of dividend has made no impact on the company's stock prices, which remained stuck at Tk 45.20 since February this year.
The company called an annual general meeting (AGM) on December 26 for final approval of the dividends to be held on a virtual platform. The record date has been fixed on November 8.
The company's net asset value per share rose to Tk 22.50 in FY'23 from Tk 21.67 in FY'22.
The net operating cash flow per share (NOCFPS), however, dropped to Tk 1.41 from Tk 2.12, owing to increased operating expenses caused by advanced deposits and prepayment of operating expenses.
The board of the company has also approved a proposal for changing the name of the company from 'eGeneration Limited' to 'eGeneration PLC.
Listed in 2021, the company had paid 10 per cent cash dividend each for the FY'21 and FY'22.
A top executive of the company, requesting not to be named, said revenue had surged due to good business tied to IT support, software services and sales of internet connections.
The demand for software and IT-enabled services has been growing as many local business organisations are adopting automation, he explained.
eGeneration provides end-to-end digital transformation solutions to medium and large businesses and the government.
The solutions include modern workplace, enterprise resources planning, digital healthcare, cloud services, cybersecurity, big data analytics, artificial intelligence, blockchain, internet of things, robotic process automation, natural language processing, and consultancy, according to its website.