Bangladesh Export Import Company (Beximco) dropped to 'floor price' on Sunday after it declared a growth acceleration in fiscal year 2021-22 to double the profit it made in the previous fiscal year.
The share price closed at Tk 115.60, having lost 2.61 per cent.
The stock has been declining in the last few months after it reached an all-time high at Tk 185 on November 11, 2021.
Despite a stellar profit growth, the company recommended 30 per cent cash dividend this year, less than expected.
"Lower than expected dividend might have disappointed the investors," said Mir Ariful Islam, managing director of Sandhani Asset Management.
Beximco, the flagship company of the Beximco Group, has reported net profit of Tk 12.55 billion for the year ending on June 30, 2022, up by a whopping 91 per cent, from last year's.
The profit was driven by a wide range of business portfolio including a significant growth in textile division.
As a result, the company's earnings per share (EPS) climbed up to Tk 14.32 this year from Tk 7.53 in the previous year.
"Beximco witnessed a steady profit growth due to new investments and strategy," said a top official of the company, requesting anonymity.
He said a major expansion of the textile division and information technology helped achieve commendable growths in both sales and profit.
The flagship platform now has operations and investments across a wide range of industries including textiles, pharmaceuticals, PPE, ceramics, real estate development, construction, trading, marine, food, information and communication technologies, media, DTH, financial services, and energy.
The group sells its products and services in the domestic market as well as in international markets. Yellow is one of the leading retail fashion clothing brand owned by Beximco.
"We have upgraded our production facilities at a huge cost…This process will continue to ensure further profits and dividends," the company official said.
Beximco established a 600,000 square feet new six-storied garment factory to expand its export capacity as well as to meet the domestic demand.
The company official said the state-of-the-art washing plant in Gazipur for Denim fabric, using green technology, the first of its kind in Bangladesh, has started production this year.
Last year, Beximco raised Tk 30 billion by floating asset-backed Green-Sukuk (an Islamic Bond) mainly to finance two solar power projects and an expansion of the Textile division.
By exploring new markets and product lines in textiles, the company executed more orders during the year.
A majority of its plants are in the BEXIMCO Industrial Park, a vertically integrated self-contained facility in Gazipur. This facility provides ready access to captive power generation, water purification, liquid nitrogen, waste water treatment and other key infrastructure.
Beximco is the largest employer in the private sector in Bangladesh and employs over 70,000 people worldwide.
The company's net operating cash flow per share stood at Tk 1.56 for the year ending on June 30, 2022, recovering from Tk (2.03) in the previous fiscal year, as collection from customers increased.
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