83 local businesses declare higher dividends as pandemic eases

Sign of recovery from Covid-19 shock is evident in many business performance

November 21, 2021, 9:15 p.m.

Last modification: November 21, 2021, 10:12 PM

Infographic: SCT


Infographic: SCT

Bangladesh Lamps Limited, a manufacturer of light bulbs, declared a 10% cash dividend for fiscal 20 as it suffered losses from the raging pandemic, but the company declared a cash dividend of 20. % for fiscal year 21 as it returned to profit.

Like Bangladesh Lamps, 83 local publicly traded companies in the manufacturing and service sectors reported higher dividends for FY21 compared to the previous fiscal year.

According to the Dhaka Stock Exchange (DSE), 180 of the local companies that maintain the July-June fiscal year have released financial statements for fiscal year 21 through mid-November.

Thirty-five of these companies declared lower dividends because they posted lower profits compared to the previous year, while 32 declared zero dividends due to their fragile financial situation. The other companies declared a dividend amount similar to that of the previous year.

Financial sector such as banks, non-bank financial institutions and insurance companies, mutual funds and foreign companies are not included in these companies because they maintain a different period for a fiscal year.

After encountering problems last year, most local businesses have rebounded by beating the pandemic shock, industry insiders have said.

The situation has not returned to pre-pandemic levels, but a sign of recovery from the shock of Covid-19 is evident in many business performance.

Mr. Mazedul Islam, general secretary of Bashundhara Paper Mills, told TBS: “The (paper) industry has faced a crisis due to declining demand for products, but now sales and business have dramatically. increased after the reopening of the economy.

“After the reopening of educational institutions, the paper industry made a comeback as demand increased,” he added.

United Power to pay highest dividend among locals

Of the local companies that have so far released their financial statements for FY21, 118 have declared dividends of up to 20%, while 21 companies have declared dividends between 21% and 49%.

Only two local companies declared more than 100% dividends: United Power Generation and Distribution Company (UPGDC) and Renata Limited.

United Power declared a 170% cash dividend – the highest among local companies – for fiscal 21. In fiscal 20, their dividend was 155% – 145% in cash and 10% in shares. .

Drugmaker Renata Limited will pay the second highest dividend for fiscal 21. It will pay 155% dividends – 145% in cash and 10% in shares.

In the previous year, it declared a dividend of 140% – 130% in cash and 10% in shares.

Meanwhile, seven companies declared a 50% to 100% dividend for FY21: ACI Limited, Square Pharmaceuticals, MJL Bangladesh, Olympic Industries, Aramit Ltd, Kohinoor Chemicals and Pharma Aid.

In FY20, only five companies paid more than 50% dividends, while 127 companies declared less than 50% dividends. Of these, 114 companies declared up to 20% and 13 companies declared 21-49% dividends.

Thirty-nine companies paid no dividends in fiscal year 20 because they suffered losses.

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