Energypac Power Generation PLC reported a substantial decline in revenue and profit for Q1 of FY24, citing a raw materials crisis that led to a 62% drop in revenue to Tk69.78 crore and a 47% decrease in net profit to Tk0.99 crore compared to the same period last FY2023.
The company’s production suffered due to difficulties in importing raw materials, leading to a working capital shortage exacerbated by overdue government payments. To safeguard investor interests, the CFO mentioned divesting from a loss-making subsidiary. In FY23, the company incurred a consolidated loss of Tk68.94 crore, resulting in a dividend reduction and a downgrade in the stock category. Recognizing potential further losses, Energypac Power sold Energypac Power Venture, a subsidiary with a 99% stake.
The company, listed in 2021, raised Tk150 crore through an IPO for business expansion. Shares closed at Tk34.5 each. Energypac Power engages in diverse businesses, including trading generators, automobiles, agro machinery, construction machinery, CNG stations, and aftermarket services.