Salvo Chemical, a company specializing in the production of sulfuric acid, sulfate, battery-grade water, and glucose, experienced a significant decline in profits during the third quarter (January to March) of the current fiscal year. The company’s profit decreased by 63% compared to the same period last year, primarily due to the rising production costs. In the January to March quarter, the company’s earnings per share (EPS) amounted to Tk0.42, a decline from Tk1.14 in the previous year. Similarly, for the period from July to March of FY22, the EPS was Tk1.42, compared to Tk2.49 in the previous year.
The company’s net asset value at the end of March 2023 stood at Tk14.79. The decline in profits can be attributed to increased costs resulting from higher raw material prices, both domestically and in imports, currency devaluation, increased energy prices, and a significant reduction in non-operating income. Furthermore, the net operating cash flow per share decreased due to higher payments made to suppliers, employees, and operating expenses compared to collections from customers.
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