GPH Ispat suffers losses for two quarters straight due to strong dollar

| Updated: February 11, 2023 09:14:06

GPH Ispat suffers losses for two quarters straight due to strong dollar

GPH Ispat Limited has incurred losses for the two consecutive quarters of the ongoing fiscal year 2022-23 despite posting a significant growth in its sales revenue.

The steel manufacturer has reported a loss of Tk 55.88 million in the second quarter (Q2) for October-December of FY23. In the first quarter, the company also suffered a huge loss of Tk 794.07 million.

As a result, the company incurred a loss of Tk 849.95 million in total in the first half of the current FY23. In the same period of the previous FY22, the company made a profit of Tk 949.4 million.

The net revenue grew 44 per cent year-on-year to Tk 14.74 billion in October-December 2022 quarter, thanks to increased production capacity following the completion of a new plant.

And in the six months through December last year, its net revenue rose 42 per cent year-on-year to Tk 27.56 billion.

The company suffered losses due to significant increase of foreign currency conversion rate as well as the shortage of power supply which has disrupted production and also adversely affected production costs, the company said in a stock exchange filing on Wednesday.

Its net operating cash flow per share (NOCFPS) was Tk (2.21) for July-December 2022 as against Tk 0.82 for July-December 2021 as payment to suppliers and others is more than collection against sales proceeds, said the company.

Listed in 202, its share price remained stuck at floor at Tk 44.80 since November 24 last year.

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