Earnings of many listed companies especially in power, cement and textiles sectors declined during January to March, 2017 compared to same period of the previous year because of multiple reasons.
The company owners and market experts said the companies' profits declined during January to March as the sales and price of goods have not risen in tandem with the hike of production cost.
According to information of Dhaka Stock Exchange (DSE), the EPS (earnings per share) of MI Cement, BEXIMCO, Padma Oil, Golden Harvest Agro Industries, Appollo Ispat Complex, Paramount Textile and Pacific Denims declined during January to March, 2016 compared to same period of previous year.
Md. Jahangir Alam, chairman of MI Cement, said the earnings of cement companies declined a little bit as the market price declined in local market.
"The cost of goods also declined and the sale price could not be raised accordingly," said the chairman of MI Cement.
The other companies whose EPS declined are: Tung Hai Knitting & Dyeing, KDS Accessories, Summit Alliance Port, Hamid Fabrics, Khan Brothers PP Woven Bag Industries, Summit Power, Tosrifa Industries, Zahintex Industries, C & A Textile, Salvo Chemical Industries, Far East Knitting & Dyeing Industries and AB Bank.
Abdus Salam Murshedy, managing director of Envoy Group, blamed the rise in cotton price and increased utility charge for declining growth of textile companies.
"The price of RMG products declined in international markets because of different reasons. That's why, the earnings of many companies declined for January to March this year," said Murshedy, also a former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).  
A senior official of IDLC Investments said some newly listed companies are yet to utilise the public funds.
"The companies will be  viable after they will utilize IPO funds. On the other hand, some small cap companies of different sectors had  no credible  financial history. That' why the EPS declined," said the IDLC official.    
The companies which reported increased EPS for January to March, 2017 compared to same period of previous are: Beacon Pharmaceuticals, Legacy Foot Wear, Rangpur Foundry, AMCL (PRAN), Daffodil Computers, Dragon Sweater & Spinning and HR Textiles.
The other companies whose EPS also rose are: BD Autocars, Delta Spinners, Premier Cement, JMI Syringes & Medical Devices, Shine Pukur Ceramics, IFAD Autos, National Feed Mill, ACME Laboratories, Renata, Shahjibazar Power Company, SAIF Powertec, Fortune Shoes, Olympic Industries, Aaramit, Zaheen Spinning, Power Grid Company of Bangladesh, Bank Asia, ACI, Standard Ceramic, Anlima Yarn, Bangladesh Submarine Cable Company, CMC Kamal, AFC Agro Biotech, Sino Bangla Industries and Olympic Accessories.
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Source: The Financial Express