GPH Ispat declares 5pc cash dividend despite losses

GPH Ispat has declared a 5 per cent cash dividend for FY25 despite the company suffering a loss of Tk 247 million for the year, owing to costlier raw materials and higher finance expenses.

The Chittagong-based steel manufacturer has reported earnings per share (EPS) of Tk 0.51 in the negative in FY25, as against profit of Tk 1.77 per share in the previous year, according to its earnings disclosure on Monday.

The company explained that due to higher cost of goods sold arising from increased raw material and production costs, along with a significant rise in finance expenses driven by elevated borrowings and interest rates, leading to the losses.

Despite suffering losses, the board of directors of the company declared a 5 per cent cash dividend only for general shareholders. The amount of cash dividend will be Tk 141 million paid from retained earnings.

The company has set its annual general meeting for December 31 to approve the proposed dividend and review the audited financial statements for FY25. The record date for eligibility to receive the dividend is December 23.

The net operating cash flow per share (NOCFPS) dropped to Tk 5.78 in FY25 from Tk 9.89 per share in the year before, mainly due to higher operational cash outflows and increased working capital requirements.

Its stock closed at Tk 17 on Monday, losing 2.86 per cent over the previous day.

Incorporated in 2006, GPH Ispat is one of the leading integrated steel manufacturers in Bangladesh engaged in the manufacturing and trading of M. S. Billet and M. S. Rod. The company features a state-of-the-art laboratory to ensure the highest quality of the finished products.

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