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In the second quarter of the new financial year, profits of listed companies in the service and housing sectors have decreased by 75 percent. Among the four companies in this sector, three experienced a decline in profits during this period of 2023 compared to the October to December period of 2022.
Amidst the backdrop of a global economic recession and the ongoing dollar crisis, one company has bucked the trend by experiencing an increase in profits during this period. Specifically, while 75 percent of companies in the sector witnessed a decrease in profits, this particular company managed to defy the odds and report an increase in profitability. This insight was gleaned from the financial report of the second quarter.
According to Investopedia, earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability. It is common for a company to report EPS that is adjusted for extraordinary items and potential share dilution.
Eastern Housing Limited (EHL), a Services & Real Estate company listed in 1994, has maintained a consistent dividend payout, with the lowest dividend being 20 percent from 2016 to 2023. However, recent financial data reveals a slight decrease in profitability for the October-December 2023 quarter compared to the same period in 2022. The earnings per share (EPS) for this quarter stood at Tk. 2.07, down from Tk. 2.09 in October-December 2022, indicating a decrease in profit by Tk. 0.02.
Looking at the broader picture, the data for the period of 2023-24 shows improvement in the company's performance. The EPS for July-December 2023 was Tk. 3.25, up from Tk. 3.13 in July-December 2022, reflecting an increase in profitability over the year. However, there is a notable decline in the Net Operating Cash Flow Per Share (NOCFPS), which was Tk. 4.29 for July-December 2023 compared to Tk. 15.10 for July-December 2022.
In response to the fluctuations in performance, Company Secretary Salim Ahmed informed The Daily Messenger that Eastern Housing Limited (EHL) encountered a unique revenue pattern in the previous year. The company received Tk. 30 crore from the sale of a single apartment project, a departure from its usual collection pattern. However, collection against plot sales experienced a significant decline due to registration difficulties.
Ahmed's statement sheds light on the irregular revenue sources and challenges faced by EHL in its sales transactions. Despite these challenges, the company's Net Asset Value (NAV) per share has shown a modest increase.
Samorita Hospital Limited (SAMORITA): EPS was Tk. 0.06 for October-December 2023 as against Tk. 0.18 for October-December 2022; EPS was Tk. 0.90 for July-December 2023 as against Tk. 0.31 for July-December 2022. NOCFPS was Tk. 1.97 for July-December 2023 as against Tk. 1.20 for July-December 2022. NAV per share was Tk. 50.24 as on December 31, 2023 and Tk. 43.99 as on June 30, 2023.
Company Secretary, Shariful Islam said, EPS has increased due to increase of revenue, decrease in cost of direct materials and administrative expenses as compared to previous corresponding period. NOCFPS has increased due to increase in cash receipts from customers. NAVPS has increased due to revaluation gain on land and usual business activities of the company.
SAIF Powertec Limited, another company in the sector, witnessed a notable decrease in its Consolidated Earnings Per Share (EPS) compared to previous periods. In the October-December 2022 quarter, the company reported an EPS of Tk. 0.19, a significant decline from Tk. 0.50 in the same period in 2021. Similarly, for the July-December 2022 period, the EPS stood at Tk. 0.34, down from Tk. 0.99 in July-December 2021.
Consolidated NOCFPS was Tk. (0.28) for July-December 2022 as against Tk. 1.07 for July-December 2021. Consolidated NAV per share was Tk. 15.83 as on December 31, 2022 and Tk. 17.91 as on June 30, 2022.
But consolidated EPS of Summit Alliance Port Limited was Tk. 0.56 for October-December 2023 as against Tk. 0.42 for October-December 2022; Consolidated EPS was Tk. 0.92 for July-December 2023 as against Tk. 0.88 for July-December 2022. Consolidated NOCFPS was Tk. 1.27 for July-December 2023 as against Tk. 1.28 for July-December 2022. Consolidated NAV per share was Tk. 32.81 as on December 31, 2023 and Tk. 33.11 as on June 30, 2023.
Messenger/Fameema
