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Newly-listed Techno Drugs endured a 24 per cent year-on-year decrease in profit to Tk 78 million in the first quarter through September of FY25, mainly due to lower sales for dwindling demand from the government.
The earnings per share (EPS) fell to Tk 0.63 for July-September this year from Tk 1.09 for the same quarter the year before.
A decline in sales revenue and the increased number of shares following the issuance of initial public offering (IPO) shares drove down EPS, said the company in its earnings note.
The drug maker raised Tk 1 billion from the market by issuing 36.2 million ordinary shares in June this year for purchasing new machinery and repaying bank loans partially.
Its sales plunged 30 per cent year-on-year to Tk 1.02 billion in the first quarter this year for what the company said was the government purchasing a lower amount of drugs in the quarter compared to the same quarter a year ago.
The drug manufacturer produces and sells human and animal drugs in the local & international markets.
Techno Drugs is one of the major hormonal product manufacturers and suppliers to the Ministry of Family Planning.
It also exports medicines to India, Germany, Nepal and the Philippines. Techno Drugs claims that it pioneered the production of oncology medicines in Bangladesh.
The net operating cash flow per share, a measure of a company's ability to generate cash from its operations, dropped to Tk 0.23 in the quarter from Tk 1.51 in the previous year, due to the increased number of shares.
Techno Drugs' annual profit jumped 43 per cent year-on-year to Tk 280 million in FY24. Based on the profit growth, the board of directors declared a 12 per cent cash dividend only for general investors.