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Listed Lubricant seller MJL Bangladesh showed a 36.62 per cent year-on-year rise in profit to Tk 1.04 billion in the second quarter through December of FY25, supported by higher revenue and a reduction in costs.
During the time, revenue grew 20.63 per cent year-on-year to Tk 12.01 billion.
The earnings per share (EPS) rose to Tk 3.23 in the quarter of FY25 from Tk 2.31 in the same quarter a year earlier.
The company successfully contained selling and administrative expenses and finance costs in Q2 of FY25.
In Q2 last year, it bore Tk 3.53 per Tk 100 revenue as selling and administrative expenses, which has been reduced by 14 per cent to Tk 3.10 per Tk 100 revenue.
The finance cost was also cut by 25 per cent to Tk 3.77 per Tk 100 revenue.
Cost control measures increased profitability. The lubricant seller earned Tk 8.68 from Tk 100 revenue in Q2 of FY25, up from Tk 7.67 in Q2, FY24.
In the six months to December, MJL Bangladesh saw its profit rise more than 30.23 per cent year-on-year to Tk 2.2 billion.
Revenue jumped 27.94 per cent year-on-year to Tk 24.5 billion in H1 of FY25.
However, the consolidated net operating cash flow per share was Tk 3.02 in the negative in July-December last year from Tk 6.87 in the same period a year earlier. The company did not provide any explanation.
Following the latest earnings disclosure, the share price of MJL Bangladesh rose 1.81 per cent to Tk 95.70 per share on the Dhaka Stock Exchange on Thursday.
The company is a regular dividend payer. It paid a 52 per cent cash dividend to shareholders for the last fiscal year.
Meanwhile, the company has decided to purchase one of its non listed sister concern Omera Petroleum Limited.
It said the board of directors of the company at a meeting on January 29 approved the purchase of 27.75 million ordinary shares (face value Tk 10 each) of Omera Petroleum at 21.80 each.
The matter is subject to regulatory approval.
Upon completion of the share transfer, MJL shall hold 75 per cent of the outstanding shares of Omera Petroleum.