BSRM Steel’s earnings decline 57%

Dhaka (Oct 18, 2020): BSRM Steel has recommended 15 percent cash dividend for the year ended on June 30, 2020, the company said in a statement posted on the Dhaka Stock Exchange on Sunday.

The company’s earnings per share, a key indicator has gone down by over 57 percent to Tk 1.97 for the year compared to that of a year ago.

Net asset value per share also declined slightly to Tk 55.58 from Tk 56.84 in the previous year.

BSRM Steel blamed less production and lower sales due to the Covid-19 pandemic and minimum taxes imposed by the government for a nosedive in its earnings.

The company said it paid minimum tax worth Tk 78.1 crore, much higher than Tk 21.3 crore if there had been no such minimum tax law.

The other two reasons BSRM put for its sorry business are: increase of deferred tax due to addition to fixed assets of new melting unit and increase of finance expenses due to setting up a new steel plant for billet production.