Bangladesh's Corporate World

Beximco Limited has posted another stellar growth in sales and profits in the October to December quarter of 2021. Its total sales grew to Tk1,913 crore in the three months, against Tk1,003 crore over the same period a year ago, the company said in its quarterly financial statement. As sales revenue outgrew the company's various costs, the conglomerate registered even higher growth in its net profits for the three months. In the October-December quarter, the company's net profits increased to Tk399 crore, from Tk157 crore a year ago. Beximco Ltd, holding a wide range of businesses including textile, personal protective equipment manufacturing, IT, trading, power, and services, has been enjoying a very high growth even amid the pandemic as almost all of its businesses are seeing rapid growth. Its quarterly earnings per share (EPS) rose to Tk4.56 from Tk1.78 and the net asset value (NAV) per share stood at Tk83.72. In the first half of the financial year 2021-22, the revenue of t...

The Bangladesh Bank reduced the single borrower exposure limit to 25 per cent of a bank’s capital from 35 per cent as part of its measures to contain the concentration of loans among a small group of people. Even though the total limit, including funded and non-funded ones, was reduced to 25 per cent, the funded loan portion was kept unchanged at 15 per cent of a bank’s capital. ‘The aggregate principal amount of funded and non-funded exposure to a single person or counterparty or a group shall not exceed 25 per cent of the capital at any point of time,’ said a BB circular issued. Besides, the central bank also withdrew the extra non-funded borrowing limit for exporters. Earlier, banks were allowed to extend credit up to 50 per cent of their capital to the exporters but, the facility was withdrawn in the latest BB circular. As a result, the exporters, like other bank borrowers, would get loans up to 25 per cent of a bank’s capital — 15 per cent funded and 10 per cent non-funded. An off...

Fortune Shoes brought the biggest fortune for stock investors in the Dhaka Stock Exchange (DSE) in 2021. The Barishal-based synthetic footwear exporter, growing in significance in export markets while eyeing a slice of the rapidly expanding local market, saw its share price appreciate 390% in a year, from 15 December, 2020 to 15 December, 2021. This was even before considering the 5% stock and 10% cash dividend it announced for its shareholders.The company announced slightly higher dividends and has been posting both higher sales and profits in recent quarters. Hot on its heels was conglomerate Beximco Ltd, the stock of which was the second best performer in the DSE, registering a price appreciation of 373%. Beximco Ltd has been reporting increasingly rising earnings since the first wave of the pandemic as almost all its business divisions -- textile, IT, healthcare, and especially its new line of personal protective equipment (PPE) -- showed high revenues, while repeatedly securing ne...