Quasem Industries Limited recorded 107% profit growth, generating capital gains in fiscal year 2020-21 amid the pandemic.
Half of the profits came from government compensation for the acquisition of land in Tangail.
In FY21, the country’s largest dry cell battery maker made a profit of Tk 9.16 crore; of which, Tk4.59 crore came from government capital gains.
In the previous year, its net profit was Tk 4.41 crore.
In addition to a variety of dry cell batteries, Quasem Industries manufactures battery operated products, flashlights, air fresheners, shaving foam and aerosols.
Officials said the company has done better business despite the disruption due to the pandemic. Overall, government compensation contributed to an increase in profits.
Although the profit has increased significantly, the company recommended a 10% stock dividend, and after issuance of free shares, the retained earnings will be used as capital.
He said these free shares will be issued upon approval by the Bangladesh Securities and Exchange Commission (BSEC).
During this fiscal year, the company terminated its commercial relationship with its sister company Quasem Lamps.
Parent company Quasem Industries will benefit from the services of its sister companies.
For these reasons and the pandemic, which erupted in March of last year, his income fell 22% in the July-March period.
Industry sources said that due to the expansion of technology in the country, the demand for dry cell batteries has declined in recent years.
With this in mind, Quasem Industries has diversified its activity and is entering the consumer products sector.
An official, seeking anonymity, said the company would expand its business portfolio by diversifying its products.
During the period considered, dry cell battery sales increased compared to the previous year, he said.
On Tuesday, the company said its board of directors recommended 10 free shares for every 100 shares.
In the previous year, it paid 5% in cash and 5% in stock dividends.
Earnings per share (EPS) amounted to 1.39 Tk in financial year 21, compared to 0.67 Tk the previous year.
To have the dividends and annual accounts approved, the Annual General Meeting (AGM) will be held on November 25 while the registration date has been set for November 3.
The net asset value (NAV) was 201.32 Tk crore, compared to 195.29 Tk crore the previous year.
The company also said it plans to start commercial production of export-oriented 100% artificial quartz products in the 2021-22 fiscal year.
In addition, it will introduce new products in the box manufacturing units to increase the sales of existing products.
In the future, the company will build and operate a modern hospital in the city of Dhaka.
Quasem Industries began its journey in the 1980s as the first ISO certified dry cell manufacturer.
Today it is the market leader with the popular brand – Sunlite – with 75% market share.
It was listed on the Dhaka Stock Exchange (DSE) in 1989.
In fiscal year 2019-2020, its net sales decreased by 26% and its net profit by 9.44% compared to the previous year.