Most listed steel makers report strong profits in FY21

The majority of listed steel companies reported higher profits in the last fiscal year compared to the previous fiscal year as demand surges and prices rise.

On-going mega projects, cost-cutting measures, innovation, high prices, and stimulus packages helped make the steel makers strong profits, according to their annual reports.

Five out of eight companies gained profits during the period, according to their annual reports. However, the annual report of Appollo Ispat was not available.    

BSRM Ltd, one of the country’s steel giants, posted a Tk 497.04 crore in profit, resulting in record profit, more than five times higher compared to the last fiscal year, said the annual report.

Likewise, BSRM Steels, another subsidiary of BSRM Group, made profits of over Tk 304 crore in FY21, four times higher than the profit of Tk 74.23 crore made in FY20. 

“Most of the steel-consuming sectors rebounded with support from government spending, pent-up demand and easing liquidity,” said BSRM Steels Managing Director Aameir Alihussain in the annual report,

He also mentioned the low-cost loans, which also helped the company to reduce the financial costs. 

“The government declared stimulus loan package for working capital financing of industries amid the pandemic. Average interest expense of this year also decreased by 4-5 per cent compared to last year which increases our net earnings,” he said.

Another steel manufacturing giant GPH Ispat gained 5.5 times more profit to Tk 166.09 crore in FY21, up from almost Tk 30 crore recorded in FY20.

GPH Ispat Managing Director Mohammed Jahangir Alam, in the company’s latest annual report, said, “In 2020-21, GPH Ispat has delivered a solid performance both in operational and ­financial business segment despite high competition in local market and raw materials price volatility in the international market.”

GPH Ispat also makes its presence globally by starting the export of MS Billet to China. If new players in the steel manufacturing market come in, the steel market will become more competitive and the industry will become export-oriented, the annual report mentioned.

Dominage Steel, a prefabricated steel structure building maker, made Tk 10.69 crore in profits, up from more than Tk 9 crore during the period.

On the flip side, Bangladesh Building Systems and Ratanpur Steel (RSRM) incurred losses during the
period.

The local steel manufacturers believe the steel industry might continue to grow above 10 per cent in the next few years, riding on the government’s mega projects in line with its vision 2041.