The earnings per share (EPS) of MJL Bangladesh has declined moderately for January-March, 2019 period compared to the corresponding period of the previous year due to currency 'devaluation' while importing raw materials.
MJL Bangladesh, country's largest lubricant company displayed steady growths in financial indicators including the EPS during last five fiscal years.
The officials said the decline in the EPS of January-March, 2019 will not affect the company's growth for the ongoing fiscal year.
The company has reported its consolidated EPS Tk. 1.51 for January-March 2019 against Tk. 2.03 for January-March 2018.
The consolidated EPS was Tk. 4.33 for July 2018-March 2019 against Tk. 4.88 for July 2017-March 2018.
Azam J Chowdhury, managing director of MJL Bangladesh, said the currency devaluation observed during importing synthetic products affected the EPS for January-March, 2019.
"The MJL Bangladesh will be able to continue its remarkable growth as the company's revenue is not dependent on a single operation," Chowdhury told the FE.
He has expressed optimism that nearly 20 per cent of the expected income for the ongoing fiscal year will come from irregular operations.
"The amount of assets contained in a single warehouse of the MJL Bangladesh will be greater than total assets of two or three listed companies. Nevertheless, our company's share price sometimes remains undervalued," said the managing director of the MJL Bangladesh.
He also said the directors of the company never interfere in the share price. "We believe in fair operations."
In last five fiscal years, the MJL Bangladesh registered steady growths in different financial indicators. The growth rates were ranging from 1.88 per cent to 39 per cent in revenue earnings.
For the year ended on June 30, 2018, the company reported a consolidated
net profit of above Tk 2.29 billion, which was 7.0 per cent higher than the revenues calculated in previous year.
Except 2014-15, the company's EPS gradually rose during 2013-14 to 2017-18 riding on increased net profits.
The company's EPS was Tk 3.77 in 2013-14, Tk 3.61 in 2014-15, Tk 5.71 in 2015-16, Tk 6.95 in 2016-17 and Tk 7.0 in 2017-18.
Apart from the EPS, a steady growth was also observed in dividends disbursed in last five years.
The company disbursed 25 per cent dividend in 2013-14, 30 per cent in 2014-15, 40 per cent in 2015-16, and 45 per cent in 2016-17.
Finally, the MJL Bangladesh disbursed 50 per cent dividend (45 per cent cash and 5.0 per cent stock) for 2017-18.
The company possesses significant ownership in two companies, which are its subsidiaries - Omera Petroleum Limited (62.50 per cent share) and Omera Cylinders Limited (98.77 per cent share).
The company's net asset value (NAV) per share also gradually rose during 2013-14 to 2017-18.
The products of MJL Bangladesh, a joint venture between government-owned Jamuna Oil Company and EC Securities, are used in the transport industry, industrial sectors, marine industry and aviation sector.
According to the company's annual report, the MJL Bangladesh has 4,500 active industrial customers, 13,500 active retail customers and above 1,000 digital sales customers.
MJL Bangladesh, presently an 'A' category company, was listed on the stock exchanges in 2011.
The company's sponsor-directors hold 71.53 per cent shares, institutions 18 per cent, foreign shareholders 0.35 per cent, general shareholders 10.12 per cent as of April 30, 2019.
The company's share price closed at Tk 86.40 each on Thursday with a marginal rise of 2.0 per cent or Tk 1.70 on the Dhaka Stock Exchange (DSE).
