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Jamuna Oil Company’s profit jumped almost 30 per cent year-on-year to Tk 4.42 billion in FY24 as income from bank deposits escalated amid rising interest rates.
The state-run oil distributor's earnings per share (EPS) stood at Tk 40 for FY24, as against Tk 30.87 in the year before, according to a stock exchange filing on Monday.
The profit rose on the back of a substantial surge in non-operating income against bank deposits, said the company.
Based on the higher profit, the company declared 150 per cent cash dividends for FY24, the highest since listing on the stock exchanges in 2007, meaning the investor will get Tk 15 per share as against income of Tk 40 each for the year.
Market operators said the growth in interest income indicated that the companies had set aside funds for interest income instead of distributing a good amount of cash dividends.
This is not a new trend that has been perceived only in FY24. The state-owned companies heavily rely upon income generated beyond their business operations to maintain their profit growth.
Following the news, the stock rose 0.63 per cent to Tk 192.7 per share after one and a half hour of trading at the Dhaka Stock Exchange (DSE).
The company set an annual general meeting on February 8, 2025 and the record date for entitlement of dividend is December 24 this year.
Its first quarter profit also soared 48 per cent year-on-year to Tk 1.24 billion in July-September quarter this year due to increase in interest income of bank deposits during the current period compared to previous year’s same period.