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Eastern Housing Ltd (EHL), a publicly traded real estate developer, posted a more-than-expected business growth as the company’s net profit surged by 48 per cent year-on-year in the fiscal year 2021-22.
The firm logged Tk 54.9 crore in net profit in FY22, the highest in five years.
It reported a net profit of Tk 37.15 crore in FY21.
The listed company’s revenue rose to Tk 331 crore in FY22 from Tk 264 crore in the previous fiscal year.
The company had a total of 24 projects until the last fiscal year.
Of them, the Jahurul Islam City (Aftabnagar) alone contributed around 60 per cent or Tk 177.23 crore to its total revenue, according to the company’s latest annual financial statement.
The Eastern Irfan Centre was the second-highest profit-making project for the listed company in fiscal 2021-22.
Besides, EHL earned Tk 15.21 crore from the Eastern Shantineer Project in the last fiscal year.
Sources at Eastern Housing Ltd said it availed of the primary clearance from the Rajuk to run its second and third phase projects in the Jahurul Islam City.
The land purchase was also going on for these projects alongside the first phase ones. And the firm already purchased 65.03 bighas of land for the second and third phase projects, they said.
After the acquisition of the required lands, the project proposals would be submitted to the authorities concerned for final approval, they added.
It also took all necessary steps on a priority basis to clear the housing project in the Amin Bazar area in Savar, the company sources continued.
EHL’s earnings per share (EPS) stood at Tk 5.88 for FY22 versus the EPS of Tk 3.98 in FY21.
Its net asset value (NAV) per share stood at Tk 74.21 till June this year.
The firm’s land sales grew by 8 per cent to Tk 201.48 crore in the fiscal year 2021-22 compared to that in the previous fiscal, while its apartment sales jumped by 67 per cent to Tk 129.79 crore compared to that in the previous year.
According to the real estate firm’s recent price-sensitive information, its profit hit a five-year high in FY22 riding on hefty stock market gains as well as rises in property prices.
The company, however, remained cautious about the ongoing abnormal rise in construction costs because it might harm its future profitability.
It would further expedite its construction projects once the raw material prices cool down, officials said.
The real estate sector is one of the fastest-growing sectors in the country with the urban population expanding rapidly, creating a growing demand for housing, office space, and other commercial properties.
The government is also encouraging private investments in the thriving sector.
The real estate sector offers a wide array of opportunities for investors and the sector is expected to thrive further in the coming years, as quoted EHL Managing Director Dhiraj Malakar in its latest annual financial report.
According to the company’s financial report, the upward trend in property prices was helping its inventory value go up in the last fiscal year.
The board of directors of EHL recommended a 20 per cent cash dividend to its shareholders for the fiscal year 2021-22.
