GPH Ispat achieves record profit since listing


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Steelmaker started production at new plant in June using quantum technology

October 31, 2021, 10:15 p.m.

Last modification: October 31, 2021, 10:17 PM

Interior view of the GPH Ispat factory in Chattogram. Photo: Mohammad Minhaj Uddin / TBS

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Interior view of the GPH Ispat factory in Chattogram. Photo: Mohammad Minhaj Uddin / TBS

Leading steelmaker GPH Ispat posted a record profit of 454% last year since listing on the market in 2012, thanks to a combination of new product introductions, capacity expansion and increased production. exports to China, even amid the pandemic.

The steelmaker posted a profit of Tk 166.08 crore in fiscal year 2020-21, with earnings per share (EPS) of Tk 4.18, according to a GPH disclosure.

As the company saw a record increase in profits, it recommended a 30% dividend (20% in cash and 10% in shares) to its shareholders, up 20% from the previous fiscal year 2019-2020.

The company says the free shares were recommended to use the amount withheld for capacity expansion.

In the previous fiscal year 2019-2020, GPH Ispat’s profit was only Tk 29.94 crore, while EPS was Tk 0.79. That year the company paid a dividend of 10% – 5% in cash and 5% in shares.

In the disclosure, GPH Ispat said its annual general meeting (AGM) will be held online on December 20. The recording date has been set for November 22. The stock dividend is subject to shareholder approval at the AGM and subsequent approval by the securities regulator.

GPH Ispat Limited is one of the country’s leading integrated steelmakers engaged in the manufacturing and marketing of MS Billet and MS Rod.

It was incorporated in 2006 and was listed on the stock exchange in 2012.

In November of last year, it started exporting MS billets to China.

Earlier in June of this year, GPH Ispat began commercial production at its new factory which was built using quantum technology – the first in Asia and the second in the world – at Tk2,500 crore.

The annual production capacity of the plant is 840,000 tons of billets and 6,40,000 tons of rod and medium section products, such as BIM steels, angles, profiles, flat bars, etc.

With this, the annual production capacity of the company oscillates around 10 08,000 tons of billets and 7,60,000 tons of bar and medium section products.

The increase in production at the plant is expected to increase GPH’s market share in the steel industry to around 10%, from 3-4% currently.

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