Shinepukur Ceramics posts stellar growth in Q1

The profit of Shinepukur Ceramics Limited, a publicly traded company, grew more than four times in the first quarter (July-September) of the current fiscal year 2022–23 on a year-on-year basis.

The porcelain tableware maker posted Tk 1.47 crore in net profit in the July-September period of the current fiscal year against Tk 0.27 crore in the same period last year.

Company sources said they could restore the footprint in the global market again which had slumped exponentially during the pandemic, the reason playing a key role to boost the earnings.

The company, according to its latest quarterly report, registered export receipts worth Tk 24.1 crore in Q1 of FY23 against the figure of Tk 21.2 crore in the corresponding period last fiscal.

The listed company had fetched export earnings worth Tk 17.9 crore in the first quarter of the fiscal year 2020–21.

The ceramics manufacturer’s domestic sales stood at Tk 23.48 crore in the July-September period of the current fiscal against Tk 13.07 crore in the same period last fiscal.

This trend refers to that the company witnessed stellar progress both in the domestic as well as global fronts.

The company, however, saw a 12.40 per cent year-on-year slump in exports in the first quarter of fiscal 2020–21, as the Covid-19 pandemic had hit the US and the European countries, its key export destinations, the hardest that time.

The listed firm at the same time had witnessed a fall in domestic sales as well due to the massive fall in demand amidst the mighty grip of the pandemic in Bangladesh.

The porcelain tableware manufacturer’s earnings per share (EPS) stood at Tk 0.10 for July-September of FY23 against Tk 0.02 for July-September of FY22.

Mohammad Asad Ullah, company secretary at Shinepukur Ceramics Limited said its earnings were booming in recent quarters riding on the growing surge in demands after overcoming the Covid backlash both on the domestic and global fronts.

The company’s revenue increased by 35 per cent year-on-year in Q1 of the current fiscal, while its production cost also went up by 32 per cent compared to that in the same period of the last fiscal.

Mohammad Asad Ullah blamed the strong dollar against the taka and the massive hike in raw material prices in the global market caused by the Russia-Ukraine war for the staggering rise in its production cost.

With an authorised capital base of Tk 500 crore the ceramics maker has a paid-up capital worth Tk 146 crore, while the total number of its securities is 14 crore.

Sponsors and directors own a 50 per cent stake in the company, while institutional investors hold 6.66 per cent and the general public represent 43.34 per cent till October 2022, according to DSE data.

The board of directors of the company declared a 3 per cent cash dividend to its shareholders for the fiscal year 2021–22.

Shinepukur Ceramics has a very strong footprint in the global tableware market with its world-class products reaching the markets in the USA, Canada, the UK, Germany, France, Italy, Japan, Sweden, Norway, Denmark, Finland, Spain, Poland, Mexico, Brazil, Chile, the UAE, Australia, New Zealand, Turkey, India, Egypt, Russia, and many other countries.