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Samorita Hospital Limited reported a 96 per cent year-on-year plunge in its net profit in the fiscal year 2021-22, thanks to people who cut their non-emergency medical expenses amid soaring living costs owing to the rising consumer price inflation in the country.
The listed private hospital posted Tk 1.62 crore in net profit in FY22 versus the profit of Tk 42.09 crore in the previous fiscal year.
The publicly traded company’s earnings per share (EPS) also fell subsequently with an EPS of Tk 0.86 for the fiscal 2021-22 against Tk 2.23 for the fiscal 2020-21.
“Our business posted a sluggish progress in the last fiscal year as people curtailed their non-emergency health expenditures amid the inflated consumer prices created by the ongoing Russia-Ukraine war,” Samorita Hospital’s Company Secretary Shariful Islam told The Business Post.
“We had started feeling the pinch right after the breakout of the Russia-Ukraine war that directly hit Bangladesh’s economy as did in many other countries across the globe, exorbitantly pushing up the prices of consumer goods, subsequently forcing people to cut their non-emergency medical expenses,” he added.
“Patients were now avoiding non-emergency medical treatments owing to their gasping amid the exorbitantly soaring living costs,” Shariful Islam continued.
The listed private medical services provider on Wednesday revealed its financial report for the fiscal year 2021-22. It also published the first quarterly (July–September) report of the fiscal 2022-23 on the same day.
In July–September period of FY23, the company’s earnings fell 86 per cent compared to that in the same period last year.
Its earnings per share stood at Tk 0.15 for July–September of 2022 from Tk 1.08 in the same period last year.
The company’s revenue also dropped by Tk 3.70 crore in Q1 of FY23 because its administrative expenses had surged significantly meantime.
Its net operating cash flow per share (NOCFPS) stood at Tk 0.93 for July–September in FY23 versus Tk 1.57 for July–September in FY22.
Besides, its net asset value (NAV) per share stood at Tk 51.47 till September 2022 which was Tk 51.32 as on June 2022.
The company said its net operating cash flow per share plunged due to the poor cash receipts from customers, according to a filing posted on the website of the Dhaka Stock Exchange (DSE) on Wednesday.
The board of directors of Samorita Hospital Limited recommended 5 per cent cash and 5 per cent stock dividend for the year ending June 2022.
It had given a 10 per cent cash dividend to its shareholders for the last fiscal year.
Earlier on July 20 last year, Samorita Hospital Ltd announced an expansion plan with constructing an eight-story building adjacent to the main hospital premises in the capital’s Panthapath area at a cost of Tk 5.5 crore.
The expansion is expected to be implemented by 2023.
