MJL Bangladesh Limited reveals Q3 earnings

“MJL Bangladesh Limited (MJLBL) has launched Multi Compartment Delivery Truck for the first time in Bangladesh to deliver lubricating oil to its industrial customers”, said M. Mukul Hossain, Chief Executive Officer of MJLBL while disclosing the Q3 earnings of 2017-18 in a hotel yesterday.

“Being the leading lubricant solution provider of Bangladesh, this shows our commitment towards providing efficiency-enhancing solutions to our customers”, Mr. Hossain added.

The company has signed an agreement for taking over a 53 bigha land including an industrial complex located at the strategic location of Murapara, Rupganj, Narayangonj with a total consideration value of BDT 970 million for its future expansion. The complex is equipped with gas connection and located at the verge of Shitalakshya River with a draft of around 6 to 8 meters. “This will surely keep us ahead of others while making future expansion of MJLBL and its subsidiaries”, said Mr. Hossain.

The company has invested an amount of USD 9.375 million in its subsidiary, Omera Petroleum Limited (OPL) against issuance of right shares by OPL. OPL will make use of the funds toward expansion of its LPG project that includes but not limited to purchasing Cylinders, Storage Equipment, Filling Machinery, Barges, Road Tankers and repayment of high-cost borrowing.

“We will be able to reap the benefits out of it once the expansion is made”, added Mr. Hossain.

“Omera Gas One Limited (OGL), a joint venture between OPL & Japanese top-ranked energy giant, Saisan Co. Ltd has installed its maiden autogas station in March 2018 “, said Mr. Hossain.

Mr. Hossain added that OGL has a plan to install 30 autogas stations throughout the country in 2018 and it will reach to 200 by the year 2020.

Sabbir Ahmed, FCA, Head of Finance & Planning of MJLBL said that the consolidated net revenue of MJLBL surged by 21.59 percent year-on-year to BDT 4,385 million in the third quarter of 2017-18. However, the net revenue of MJLBL on solo basis declined by 1.46 percent year-on-year to BDT 2,136 million in the same reporting period.

The consolidated gross profit was recorded at Tk 1,301 million, up by 29.63 percent compared to Tk 1,004 million in the third quarter of 2016-17 due to 42.81 percent revenue growth of OPL. The gross profit on solo basis surged by 0.35 percent year-on-year to BDT 878 million in the third quarter of 2017-18. The consolidated gross profit margin stands at 29.68 percent, while it was 41.13 percent in case of solo basis.

“The lesser pace of acceleration in the cost of revenue compared to revenue amid increasing pricing of raw materials and capricious foreign exchange market is commendable indeed”, said Mr. Ahmed. “To make such hefty gross profit absorbing those stuns is a testimony of the efficiency and dedication of our human resources showed in a challenging environment”, added Mr. Ahmed.

Net profit after tax of MJLBL on consolidated basis soared by 14.41 percent year-on-year to BDT 678 million in the third quarter of 2017-18. However, net profit after tax of MJLBL on solo basis plunged by 0.96 percent year-on-year to BDT 573 million in the same reporting period.

“Deferred tax of the newly procured ocean-going vessel coupled with the soaring borrowing cost eroded the increased gross profit of MJLBL thereby weakened the solo basis net profit after tax”, said Mr. Ahmed.

The consolidated EPS of MJL Bangladesh Limited (MJLBL) soared by 8.95 percent year-on-year to BDT 2.13 in the third quarter of 2017-18. In the first nine months of 2017-18, consolidated EPS reached to BDT 5.12 against BDT 5.11 of 2016-17.

Mr. M. Mukul Hossain, CEO, Mr. Sabbir Ahmed, FCA, Head of Finance & Planning, Mr. S M Rahmatul Mujeeb, FCA, Senior Finance Controller and Mrs Nagma Mahmood, Head of HR and Company Secretary were present on behalf of MJLBL In the third quarter earnings disclosure.

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