BSRM Steels to invest Tk 1,850cr to boost production

BSRM Steels, the country’s one of the leading steelmakers, has said it will invest Tk 1,850 crore in enhancing its production capabilities over the next two years.

The firm decided to invest the amount, including Tk 700 crore planned last year, as the Covid-19 pandemic situation is improving, said an executive at the company.

“The board approved revised capital investment for setting up of the new bar and wire rolling and expansion of melting unit to enhance the capacity of rolling by 6 lakh metric tonnes per annum and melting 2.5 lakh metric tonnes per annum to cater the growing market demand for quality steel products,” said the company in a filing with the Dhaka Stock Exchange (DSE) on Sunday.

The new units are scheduled to enter commercial operation by 2023, it said adding the business expansion will be financed by the company’s own sources and debt fund.

Meanwhile, the company recommended 40 per cent record cash dividend, including interim 10 per cent cash for the year ended on June 30, 2021.

The company posted a profit after tax of Tk 3,04.7 crore in the last fiscal year, a significant jump from Tk 74.2 crore recorded in the same period a year earlier when every business came to a standstill.

The company reported that an increase in sales, higher prices and decrease in operational expense brought higher profits to the company during the pandemic.

The company’s financial expenses decreased due primarily to the reduction of interest rate and stimulus package offered by the government during the pandemic.

It reported Earnings-per-Share (EPS) of Tk 8.10, and NAV (net asset value) per share of Tk 62.38 for the year ended on June 30, 2021, as against Tk 1.97, Tk 56.84 and Tk 5.57 respectively for the same period of the previous year.