BSCCL declares 37% cash dividend

The Bangladesh Submarine Cable Company Limited (BSCCL) has declared a 37 per cent cash dividend for its shareholders for the financial year 2020-21, thanks to good earnings.

This is the highest ever dividend to be disbursed by the state owned listed company. It disbursed 20 per cent cash dividend in the previous year.

The latest dividend was recommended at a meeting of the company’s board of directors on Thursday. It is scheduled to be approved in a virtual annual general meeting (AGM) slated for December 7 while the record date is fixed as November 11.

According to its financial statement, the BSCCL’s net profit rose 110 per cent to Tk 191 crore in FY21, while the revenue rose 40 per cent to Tk 345 crore in FY21. BSCCL Managing Director Mashiur Rahman attributed the good profit to the handsome revenue it bagged in the year. “The net profit increased to a great extent thanks to good revenue and unchanged expenses,” said the BSCCL MD.

Mashiur Rahman further said his company was instrumental in boosting revenue as the demand for internet usage increased manifold amid the pandemic. The BSCCL has been successful to retain its market share which helped it to thrive defying the pandemic-induced adversities, he added.

He in particular noted that the pandemic-induced restrictions came as a boon for the company as people were compelled to stay home and carry out official activities through virtual platforms.

It gave a boost to the internet demand and put a positive impact on the balance sheet of the state-run submarine company. According to the Bangladesh Telecommunication Regulatory Commission (BTRC) data, the number of internet subscribers jumped around 14 per cent and stood at 12.95 crore at the end of June this year. The BSCCL’s share price increased 4.12 per cent to Tk 212.5 on Thursday at the Dhaka bourse.

The market capitalization of the company is Tk 3,365 crore while its paid-up capital is around Tk 165 crore.

The ‘A’ category company was listed with the exchanges in 2012. The government holds 73.84 per cent shares of the company, while institute 14.44 per cent, foreign 2.68 per cent and public 9.04 per cent.