Coppertech Industries, the manufacturer of copper products, has earned Tk 17.86 crore in revenue in the first quarter of the current fiscal year (FY) 2024, the highest in the last five years.
But its net profits fell by 30 per cent during the July–September period of FY24 due to hikes in prices of fuel, electricity, and raw materials.
The company posted a net profit of Tk 72 lakh during the July–September period of FY24 as compared to a net profit of Tk 1.04 crore in the same period of the previous fiscal year.
However, the company’s revenue increased by 47.84 per cent compared to the first quarter of the previous year. The company’s revenue from product sales in the first quarter of FY24 was Tk 17.86 crore compared to Tk 12.08 crore in the same period of the previous year.
The lowest earnings per share of Tk 0.11 were achieved during this period of the last five years.
Coppertech Industries Company Secretary SK. Miraj Ali said in the last few years, they have taken many new initiatives to increase production. Casting and rolling (CCR) production line was commissioned in 2022. Besides, their products are also doing well. But the increase in fuel price, and production cost including electricity has also negatively affected the profit growth.
The financial statement for the first quarter of FY24 showed that the company had gross sales of Tk 20.52 crore, of which Tk 2.65 crore was paid in VAT as compared to gross sales of Tk 13.89 crore in the same period of the previous year and Tk 1.81 crore was paid in VAT.
According to the company’s Q1 financial report, revenue for FY22 was Tk 15.35 crore, net profit was Tk 1.93 crore, and earnings per share were Tk 0.31.
In FY21, the company earned revenue of Tk 10.23 crore, net profit of Tk 84 lakh, and earnings per share of Tk 0.14.
In September 2022, the company started commercial production of CCR wire, which was procured under the initial public offering (IPO) fund.
The company is expected to increase sales by 160 per cent to Tk 180 crore in a year, according to an equity note prepared by EBL Securities Ltd.
The CCR project’s annual output is expected to be 1,200 tonnes, which is worth around Tk 110 crore at the current market price of Tk 900 per kg, it added.
Coppertech Industries signed a deal with Mohammadi Electric Wires and Multi Products Limited in January 2022, where the company will earn around Tk 52 crore in revenue annually based on the prevailing market price of copper wires until the agreement expires, according to the DSE website disclosure.
In December 2021, Coppertech signed a deal with the state-owned PVC cable company, Eastern Cables Ltd, to supply 100 tonnes of finished copper wire worth Tk 11 crore.
It has taken the decision to purchase 32 decimals of land adjacent to its factory at Madhabpur in Habiganj at an estimated cost of Tk 2.3 crore.
Coppertech Industries sources its raw materials from both international and local markets. The majority (66 per cent) of raw materials are imported and procured from indigenous sources.
The company manufactures and trades industrial copper products, namely, copper busbar, copper rods, copper strips, copper wire, copper pipe, and copper tubes.
Consumer industries for the products are power plants, air-conditioning and refrigerator manufacturers, engineering workshops, electronic product producers, electric car manufacturers, solar panel producers, and other local customers.
On December 29, 2018, the Bangladesh Securities and Exchange Commission (BSEC) approved the IPO proposal of Coppertech Industries. The company raised capital worth Tk 20 crore by offloading 20 million shares under the fixed price method and it was listed on the Dhaka and Chattogram bourses in 2019.
The company’s shares have been stuck at Tk 36.90 for the past year due to the floor price.
Coppertech Industries paid a 2 per cent cash dividend to its shareholders for the year ended on June 30, 2023.
source: businesspostbd.com
Coppertech profits fall revenue growth
