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Eastern Housing posts 25% profit growth in FY23, highest in six years

Staff Correspondent
30 Aug 2023 20:50:14 | Update: 30 Aug 2023 20:50:14
Eastern Housing posts 25% profit growth in FY23, highest in six years

When most companies displayed a sluggish performance owing to the economic crisis both on domestic and global fronts, Eastern Housing Limited (EHL), a publicly traded real estate firm, posted a 25.30 per cent year-on-year profit growth in the fiscal year 2022-23.

The company logged Tk 68.79 crore in net profit in FY23, the highest over six years.

Meanwhile, the board of directors of Eastern Housing decided on Wednesday to pay a 25 per cent cash dividend to its shareholders after reviewing the financial statements for the financial year ended on June 30, 2023, the highest in the last five years.

In FY22, the company’s net profit surged by 48 per cent to Tk 54.9 crore. The listed company’s revenue rose to Tk 331 crore in FY22 from Tk 264 crore in the previous fiscal year.

The listed firm’s earnings per share (EPS) stood at Tk 7.37 for FY23, compared to Tk 5.88 for the previous fiscal year.

Its net asset value (NAV) per share was Tk 80.08, and its net operating cash flow per share (NOCFPS) was Tk 20.56 as on June 30, 2023.

The annual general meeting (AGM) of the company will be held on October 18, this year, to get approval from shareholders on the declared dividend, while September 21 has been set as the company’s record date to identify eligible shareholders for the dividend payout.

Incorporated in 1964, Eastern Housing raised capital with an overwhelmingly subscribed IPO of shares and debentures, with a prospectus issued in July 1994.

The company is a REHAB member and was formed by Jahurul Islam to reduce the housing problems of Dhaka city. It disbursed a 20 per cent cash dividend for the year ended June 30, 2022.

Eastern Housing has undertaken massive development projects, both in Jahurul Islam City (Aftabnagar) and Pallabi. Construction of roads, the installation of electricity lines, and other utility services are visible in Jahurul Islam City, and a good number of customers have already started building in those areas, according to the company’s website.

The company’s share prices closed at Tk 90.10 each on Wednesday on the Dhaka Stock Exchange (DSE). With a market capitalisation of Tk 850 crore, the company has a paid-up capital of Tk 93.3 crore and a surplus reserve of Tk 604 crore.

The company had a total of 24 projects until FY22.

Of them, 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 Center 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 said it availed itself of the primary clearance from the Rajuk to run its second and third phase projects in Jahurul Islam City.

The land purchase was also going on for these projects alongside the first-phase ones. And the firm has 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.