Active Fine Chemicals and AFC Agro Biotech – two companies of the AFC Group – posted a staggering increase in profits in the first quarter of the current fiscal year.
Both companies posted significant growths in revenue, thanks to the export incentives of Active Fine Chemicals and the sales from a big order of AFC Agro to the government.
Active Fine Chemicals
The net profit of Active Fine Chemicals - a chemical reagent and active pharmaceutical ingredients (API) maker - increased 745% to Tk6.34 crore in the July to September quarter of the current fiscal year, compared to the same period the previous fiscal.
During the period, the company earned Tk41.88 crore revenue, which was Tk38.67 crore in the same period the previous year.
Its earnings per share (EPS) was Tk0.26, and net asset value (NAV) per share was Tk22.27 in the first quarter of FY22.
Md Mahbubur Rahman, company secretary of Active Fine Chemicals, said the addition of cash incentives on exports in this quarter's sales helped the increase in net profit.
The last trading price of each share of the company at the Dhaka Stock Exchange (DSE) was Tk23.80 on Monday.
AFC Agro Biotech
The net profit of AFC Agro Biotech increased 192% to Tk3.36 crore in the July to September quarter of the current fiscal year, compared to the same period of the previous fiscal.
During the period, the company earned Tk38 crore revenue, which was Tk13 crore in the same period the previous year.
Its EPS was Tk0.29, and NAV per share was Tk18.30 in the first quarter of FY22.
Md Mahbubur Rahman further said a remarkable Tk37 crore sale to the government has helped the surge in total revenue.
Earlier, the company declared that it will supply a total of 5 lakh RT-PCR Covid-19 testing kits worth Tk43.45 crore to the government.
The Centre for Advanced Research in Sciences (CARS) of Dhaka University (DU) also collaborated with AFC Agro Biotech to develop and produce a Covid-19 vaccine named DUBD-vac.
According to the deal, CARS and AFC Agro Biotech will jointly work for the innovation of various vaccines including the development and production of the Covid-19 vaccine.
The last trading price of each share of the company at the DSE was Tk32.30 on Monday.