Linde Bangladesh reported a dramatic profit increase of 264 times in the third quarter of 2024, primarily due to the sale of its welding business, earning Tk 7.72 billion despite an operational loss of Tk 267 million. Although revenue rose 3% to Tk 1.68 billion, this did not translate into operational profits, with costs surging 228% to Tk 430 million due to retirement benefits paid post-sale.
Following the announcement, Linde’s stock jumped 7.5% on the Dhaka Stock Exchange. The sale also significantly boosted its nine-month profit to Tk 6.28 billion, though investors were advised to be cautious about the sustainability of this profit surge. The company declared an unprecedented 4,100% interim cash dividend, totaling Tk 6.24 billion, primarily benefiting its major shareholders. However, Linde’s profits have been declining, from Tk 883 million in 2022 to Tk 525.68 million in 2023, raising concerns about future profitability after the sale of a key revenue-generating business.
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