SS Steel Ltd has witnessed a surge in turnover due to its acquisition spree since 2020, culminating in a 41% year-on-year increase to Tk 1,642 crore in the July-March period of the current fiscal year. However, its net profit margin plunged to 0.23%, the lowest among listed steelmakers, from 12.51% in FY19. Critics question the logic behind these acquisitions, as profits dwindle despite increased sales. The company’s debt-to-equity ratio surged from 0.48 in FY19 to 1.24 in FY22, prompting concerns about its aggressive financing strategy. Rising finance costs, reaching Tk 121 crore in FY23, further strain profitability. While SS Steel’s acquisitions aimed to boost growth, they seemingly led to diminished returns, raising regulatory scrutiny. Despite queries, the company remains silent on its performance, prompting further evaluation by the Bangladesh Securities and Exchange Commission.
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