Loading...

Simtex's profit falls marginally as import cost spikes


Simtex's profit falls marginally as import cost spikes

Simtex Industries saw a moderate decline in earnings per share (EPS) in October-December 2022, compared to the same quarter of the previous year mainly due to increased import costs.

It has reported EPS of Tk 0.21 for Q2, FY22, decreased by 19 per cent from the same quarter of the previous year.

The EPS, however, advanced marginally to Tk 0.45 for July-December 2022 from Tk 0.43 a year ago.

Ashis Kumar Saha, company secretary of Simtex, said the company imports around 70 per cent of the raw materials needed and the import cost rose significantly as the taka lost value against the dollar.

"The finance costs rose significantly. These factors played a role behind the decline in EPS for the second quarter," he said.

Simtex Industries, however, saw a robust growth in the net operating cash flow per share for July-December, 2022, compared to the same period of the previous year. The NOCFPS advanced 555 per cent to Tk 2.55 for July-December 2022 against Tk. (0.56) for July-December 2021.

In a disclosure, the company said its NOCFPS jumped as the sales and collection increased considerably. Moreover, better rationalisation helped the company limit expenses.

The company's share price closed at Tk 23.80 each at the end of August 2022 and declined to Tk 17.30 on October 4. The share price closed at Tk 15.80 each on Tuesday.

Simtex Industries, presently a 'B' category company, was listed on the bourses in 2015.

The company's sponsor-directors hold 31.65 per cent shares, institutes 15.76 per cent and general investors 52.59 per cent, according to data until the end of 2022.

[email protected]

Share if you like