Energypac Power Generation announced that its profits tumbled found in the July-September quarter of 2020 ahead of its trading debut found in the Dhaka STOCK MARKET (DSE) today.
Energypac's profits dropped 98 % year-on-year to Tk 6.64 crore in the time as a result of the ongoing coronavirus pandemic.
Humayun Rashid, managing director of Energypac Power Generation, said they produce professional products and their sales declined as private investment slowed up amid the Covid-19 fallout.
"As the pandemic hit the private sector through the July-September period, our profits dropped," he said.
"Our profits will jump with the revival of the economy, as our products happen to be directly linked to industrialisation," Rashid added.
Energypac Power Generation raised a good fund of Tk 150 crore through its initial public offering (IPO), the proceeds that will be used to create liquid petroleum gas (LPG) more available as a primary fuel source for vehicles in Bangladesh and repay the business's bank loans.
The applications for the business's shares had been oversubscribed by 10.76 times. Pursuing bidding from institutional investors, its cut-off price for primary shares was place at Tk 35 per share.
At the end of fiscal 2019-20, the business's consolidated earnings was Tk1,097 crore, that was 24 per cent lower compared to the previous year. However, its net profit grew by 21 per cent to Tk 58.18 crore.
Founded in 1995, Energypac can be a significant supplier of bottom load and standby gas and diesel generators and solar panels and its own accessories, operates and keeps independent power crops, CNG transmitting, distribution, refueling stations and alteration kits, importing and promoting JAC automobiles, machinery and resources, spare parts, set up and service.
The country has around 20 companies that sell around 10,000 buses and commercial vehicles a year and the marketplace is growing by 10 to 15 % annually, based on the company's IPO prospectus.
Bangladesh's LPG demand is merely 2 % of its total oil demand and significantly less than 0.01 % of the total energy demand. However, LPG demand is likely to grow significantly as an alternative to household cooking fuel and transportation petrol, it said.
The energy engineering company, which is certified by the International Organisation for Standardisation, introduced its G-Gas LPG brand as part of its efforts to meet the country's growing demand for clean energy.
G-Gas LPG currently gives household, industrial, bulk LPG and auto-gas solutions in the united states.
Around 26 km from Khulna city, the G-Gas plant was established found in Dacope upazila in 2011.
At present, G-Gas offers fuel services to 3.5 lakh customers and according to the business's calculations, they currently have market share of 9 per cent.