SS Steel Ltd, one of Bangladesh’s leading steel manufacturers, has achieved impressive financial results in the first quarter of the current financial year. The company’s profit surged by 50%, reaching Tk 98.58 lakh, a substantial improvement over the same period last year. This jump in profit, combined with a noticeable increase in its cash flow, signals a strong recovery and enhanced operational effectiveness for the company. The growth in profit is largely attributed to improved customer cash collections, more efficient management of receivables, and a reduction in inventory levels.
One of the key factors contributing to SS Steel’s success in Q1 is the company's ability to boost its consolidated earnings per share. The EPS for the July-September period increased to Tk 0.03, up from Tk 0.02 during the same period last year. This reflects a solid increase in profitability and provides investors with greater confidence in the company's ongoing performance. The notable rise in cash flow was further highlighted by the company’s consolidated net operating cash flow per share, which rose sharply to Tk 3.51, compared to a negative Tk 0.17 in the same quarter the previous year. This drastic improvement underscores SS Steel’s ability to convert its revenues into actual cash, a critical indicator of financial health.
The steel manufacturer attributed its strong performance to a combination of strategic measures aimed at improving liquidity and reducing operational costs. A significant part of the improvement was linked to more effective management of receivables, ensuring that payments from customers were collected more efficiently. Streamlined receivables management, coupled with reduced inventory levels, allowed the company to lower its working capital requirements. This has not only improved cash flow but has also allowed SS Steel to make better use of its resources and reinvest in the business.
Another crucial factor in the company’s improved performance was its cost control measures. SS Steel focused on tightening its control over operational expenses, which helped mitigate rising production costs. By reducing prepayments and cutting unnecessary expenditures, the company was able to maintain a leaner cost structure. The result has been a stronger bottom line, with the company managing to improve both its profitability and cash flow despite potential external challenges like rising raw material costs or inflationary pressures in the local economy.
This financial upturn is also reflected in SS Steel’s stock performance. The company’s shares saw a rally of 6.67%, closing at Tk 9.6 on the Dhaka Stock Exchange. This surge in share price indicates strong investor confidence in SS Steel’s current and future prospects. Positive market sentiment, coupled with the company’s robust financial results, has attracted more investors, driving up the demand for the company’s stock.
