SS Steel sees sharp profit decline in Oct-Dec

SS Steel Limited's profit declined by 97.10 per cent year-on-year in the first quarter of the current financial year because of a spike in the prices of raw materials caused by the unprecedented depreciation of the local currency against the US dollar.

The steel manufacturer made a profit of Tk 65.73 lakh in October-December 2022-23, way down from Tk 22.68 crore in the same period a year ago.

Thus, consolidated earnings per share were Tk 0.02 in the October-December quarter of FY23 against Tk 0.69 in the identical quarter of 2021-22, according to the unaudited financial statements.

SS Steel's Company Secretary Md Mostafizur Rahman blamed the fall of the taka against the US dollar for the higher raw material prices.

"When we opened letters of credit, the US dollar traded at Tk 88-92. But when we settled it, the dollar cost us Tk 108-Tk111," he said.

The profit plummeted to Tk 65.73 lakh in the first half of FY23 from Tk 45.02 crore in July-December of FY22. So, the consolidated EPS was Tk 0.02 for July-December against Tk 1.37 in the first half of FY22.