BSRM Steels to invest Tk 700cr for new plant

The board of BSRM Steels Ltd has approved an investment of 700 crore taka (estimated) to set up a new steel plant to raise capacity by another 5 lakh metric ton mild steel (MS) products per annum to cater the market demand.

The new plant is expected to start its operation by the middle of 2023, as said on the website of the Dhaka Stock Exchange (DSE) Sunday.

The board of directors of the company also has recommended a 15 per cent cash dividend for the year ended on June 30, 2020.

The final approval will come at the annual general meeting (AGM) scheduled to be held at 10:30am on December 24 through a digital platform. The record date is November 15.

The company has also reported earnings per share (EPS) of 1.97 taka, net asset value (NAV) per share of 56.84 taka and net operating cash flow per share (NOCFPS) of 5.81 taka for the year ended on June 30, 2020, as against 4.60 taka, 55.58 taka and 12.43 taka respectively for the same period of the previous year.

According to the DSE website, reasons of the company’s less earnings per share (EPS) compared to last year are—(1) less production and fewer sales due to pandemic Covid-19, (2) considering deduction of all types of taxes as a minimum tax of (as per sec 82C imposed specifically on steel industry by the government), tax paid is 781 million taka which is much higher than the regular tax of 25 per cent of 213 million taka had there been no such minimum tax law and (3) increase of deferred tax due to addition to fixed assets of new melting unit 3

There will be no price limit on the trading of the shares of the company today following its corporate declaration. However, as per a BSEC order issued on March 19, 2020, the floor price will be applicable accordingly.