Lower sales sink Energypac Power’s profits by 50%

Energypac Power Generation PLC, a publicly traded company in Bangladesh, has suffered a significant year-over-year (YoY) fall in both its sales and in its profits in the July–September quarter of FY24 due to lower sales.

The company's unaudited Q1 financial statement was released during a board meeting on January 4.

Due to a decrease in sales, the company's profits have declined by 50 per cent when compared to the same period of the previous year.

Energypac’s earnings per share stood at Tk 0.05 for the July-September period of 2023 against Tk 0.10 for the same period of 2022.

The financial statement reveals that in comparison to the same quarter of the previous fiscal, Energypac Power's revenue decreased by 62 per cent to Tk 69.78 crore and its net profit decreased by 50 per cent to some Tk 0.99 crore in Q1 of FY24.

Meanwhile, net operating cash flow per share (NOCFPS) stood at Tk 0.01 for July-September of 2023 against Tk 3.24 for the same period of the previous fiscal. Additionally, the company’s net asset value per share stood at Tk 42.97 as of September 30, 2023, and at Tk 43.18 on June 30, 2023. 

Energypac stated on the Dhaka Stock Exchange’s (DSE) website that the NOCFPS has been decreased due to a slowdown of sales along with credit recovery and an increase in operational gearing.

The power engineering company had enlisted on the stock exchange in 2021 by offloading shares through an initial public offering (IPO) under the book-building method and raised Tk 150 crore through the IPO. This was mainly to expand its liquefied petroleum gas business. 

The engineering company’s shares closed at Tk 34.5 each on Thursday at the DSE.

Energypac has a diverse business portfolio comprising of trading of standby and base load generators, JAC branded automobiles, John Deere branded agro machinery and equipment, JCB branded construction machinery and material handling equipment, and it also divulges in the operations of CNG refuelling stations along with aftermarket services.

The company recorded a Tk 68.94 crore combined loss in FY23, however, it achieved Tk 14.34 crore in profits on an individual basis through its diverse businesses. Additionally, its consolidated sales fell to Tk 800.83 crore, a 60.61 per cent YoY reduction.

Due to this significant loss, the company paid a five per cent cash dividend to its general shareholders for FY23 exclusively and cut its payouts in half from the previous fiscal. This resulted in Energypac's stock being downgraded at the DSE from the 'A' category to the 'B' category.