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Square Hospitals Limited, a tertiary private healthcare service provider, reported a 20.25 per cent year-on-year drop in net profit in the fiscal year 2012–22 despite an uptick in the overall revenue.
The hospital posted Tk 33.08 crore in net profit in FY22 against Tk 41.48 crore in the previous fiscal year.
The associate company of Square Pharmaceuticals Limited, the country’s largest drug maker, however, witnessed a 14.46 per jump in revenue to Tk 502.35 crore in the fiscal 2021–22 versus Tk 438.87 crore in FY21.
Square Hospitals Ltd, a non-listed company, is a modern tertiary care hospital with 400 beds and the leading contributor to private healthcare services in Bangladesh.
It is a private limited company and is fully operational.
According to Square Pharmaceuticals’ latest annual report, the leading hospital did not declare any dividend due to new expansion plan, up-gradation, and replacement of the existing equipment with modern ones.
Square Pharma holds 199,750 ordinary shares with a value of Tk 1,000 each, or 49.94 per cent stake in Square Hospitals Limited.
Square Hospitals is Dhaka-based a tertiary care hospital and this has been made possible only through a consistent commitment to improving the lives of people through utmost service excellence since its inception in December 2006, according to company sources.
Square Pharma’s other associate company – Square Textile – is a cent per cent export-oriented yarn manufacturer.
Square Textile which is also a publicly listed company remains fully operational and a profitable concern of the parent company Square Pharmaceutical Limited.
Square Pharma holds 91,436,679 ordinary shares with a value of Tk 10 each including bonus shares.
The textile maker declared a 35 per cent cash dividend for the fiscal year 2021–22.
Square Pharma’s consolidated revenue from operations surged by 13.81 per cent to Tk 6,641 crore in FY22 from Tk 5,835 crore in the previous year.
Moreover, its net profit grew by 13.98 per cent to Tk 1,818 crore in the last fiscal year from Tk 1,595 crore in the previous year.
Its earnings per share (EPS) stood at Tk 20.51 at the end of fiscal 2021–22 from Tk 17.99 in the previous fiscal.
Tapan Chowdhury, managing director of Square Pharma, dedicated this success to its employees, who worked hard even in tough times like the coronavirus pandemic and Russia- Ukraine war.
The ongoing global economic turbulence created many challenges, including currency crises, oil price hikes, and food crises, consequently causing a rise in production costs for drug makers, he added.
The board of directors of Square Pharma recommended a 100 per cent cash dividend for the year ended on June 2022, the highest in the company’s history.
The final approval regarding the dividend payout is expected to come from its annual general meeting (AGM), which is scheduled to be held on December 24.
The company reported a consolidated net asset value (NAV) per share of Tk 116.7 and a consolidated net operating cash flow per share (NOCFPS) of Tk 14.52 for FY22, compared with Tk 102.54 and Tk 12.38, respectively, in the previous year.
In fiscal 2020–21, the pharma company disbursed a 60 per cent cash dividend to its shareholders.
Square Pharma is the biggest drug manufacturer in Bangladesh, with a 17.2 percent market share in the country’s $3.2 billion pharmaceutical market.
The drug maker put a hefty investment of Tk 1,050 crore in BMRE (balancing, modernisation, rehabilitation, and expansion) to materialize the procurement, setting up new machinery, and land purchase for further expansion in four years.
A top official at Square Pharma told The Business Post, “Investment is a part of our regular operations and expansion plan. We allocate a substantial slice of our profit for the investment plan because old machinery needs to be upgraded while new equipment is also needed for further advancement.”
Meanwhile, the drug maker posted substantial growth in its business, riding on the unveiling of new drugs as well as its strong marketing strategy.
Listed in 1995, the company’s shares closed at Tk 209.8 per share on the DSE trading floor on Wednesday.
