BM Desk : The January-March period of this year showed a decline in the profitability of the majority of listed companies as sluggish consumer demand restrained sales growth and stubbornly high inflation drove up corporate costs.

As of right now, 309 publicly traded companies—including banks—have released their quarterly financial results. 177 of them stated that their profits were lower than those of the same time last year. Their combined earnings dropped by 25%, indicating a tumultuous business environment at the time. Of the 177 businesses, 27 reported losses even though they had made money during the same time frame the previous year.

According to Humayun Rashid, former president of the International Business Forum of Bangladesh (IBFB), the country’s inflation has been above 9% for 37 consecutive months, the longest period of high consumer prices in four decades. As a result, consumer spending has decreased, negatively impacting company sales and profits. He also stated that the overall cost of conducting business has increased due to inflationary pressures. At the same time, Rashid reported that business sentiment had weakened.
“Entrepreneurs feel uneasy, thus they are hesitant to invest. Public investment has also stalled. When both private and public investment is limited, business suffers,” said the Energypac Power MD. Geopolitical conflicts, such as the ongoing Russia-Ukraine war and the Middle East conflict, have exacerbated the situation.

According to market data research, listed corporations’ total profits decreased more than 25% to Tk 4,238 crore in January-March, down from Tk 5,665 crore the previous year.
Although combined profits improved in 2024 compared to the previous year, earnings remained much lower than the Tk 6,613 crore generated in the first quarter of 2022.
According to Sandhani Asset Management, the total January-March profits of the same listed corporations have decreased by 36% over the last three years.

“This year’s overall business was bad due to slower sales growth and greater costs,” said Md Kyser Hamid, executive member of the Bangladesh Association of Publicly Listed Companies (BAPLC).Manufacturers who delayed letters of credit (LC) payments were heavily hurt by the steep depreciation of the local currency, while finance costs increased as bank interest rates surged, he noted. Grameenphone had the greatest quarterly profit of Tk 633 crore, followed by Square Pharmaceuticals at Tk 605 crore and United Power at Tk 417 crore.

However, Grameenphone’s profit plummeted by more than half due to lower data prices, weaker customer spending, and continued macroeconomic challenges.Top profit-makers, such as British American Tobacco and Walton Hi-Tech Industries, also saw earnings fall.
British American Tobacco had fewer sales, while Walton’s profits fell due to increased costs, particularly rising finance charges.
Some banks performed better between January and March, benefiting from higher government bond yields.Brac Bank, Jamuna Bank, Pubali Bank, and Eastern Bank all reported strong profit growth in the quarter.
Many banks, however, performed poorly. First Security Islami Bank reported the greatest loss of Tk 575 crore, followed by IFIC Bank at Tk 499 crore and AB Bank at Tk 255 crore.
Since the governmental changeover on August 5 of last year, the banking industry has undergone significant restructuring.