Square Pharma’s profits up 22pc

Profits of Square Pharmaceuticals and its subsidiaries surged 22 per cent in the first nine months of the current financial year of 2021-22 due to higher sales.

The local drug maker's profit stood at Tk 1,421 crore in the period from July 2021 to March 2022 whereas it was Tk 1,163 crore in the same period the previous year.

As a result, its earnings per share (EPS) rose to Tk 16.03 whereas it was Tk 13.12.

The consolidated EPS of the company increased due to higher sales revenue along with proficient usage of materials that led to increased gross profit for the reporting period, the company said in a disclosure posted on the Dhaka Stock Exchange (DSE) website yesterday.

The drug maker witnessed net sales of Tk 4,372 crore in the nine-month period of the current financial year, around 16 per cent higher year-on-year.

Square Pharmaceuticals' exports were also higher in the current year. Its export earnings amounted to $1.47 crore in the last three quarters whereas it was $1.31 crore in the nine months of the previous year.

Favorable movements in foreign exchange transactions also added to the increased net operating profit, said the company.

Reduction of the corporate tax rate for the period resulted in the increment of the EPS, added the disclosure.

Profits from other associates also rose and it helped to increase the profits of Square Pharmaceuticals.

Profits from associate undertakings rose 75 per cent to Tk 145 crore in the current year. Of it, Tk 61 crore was of Square Textiles, Tk 70 crore of Square Fashions and Tk 13.65 crore of Square Hospitals.

Yesterday, stocks of Square Pharmaceuticals dropped 0.09 per cent to Tk 225.5 at the DSE.