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HeidelbergCement relegated to ‘Z’ category

  • Published at 02:51 pm May 31st, 2020
Heidelberg Cement Bangladesh Ltd

With the new inclusion, the number of total companies in ‘Z’ category stood at 51 on the country’s prime bourse DSE

HeidelbergCement Bangladesh Limited, a publicly traded multinational company, has been relegated to 'Z' category from ‘A’ category with effect from today (Monday) as the company recommended no dividend for the year ended 2019.

The Dhaka Stock Exchange (DSE) on Sunday announced its decision on its website.

With the new inclusion, the number of total companies in ‘Z’ category stood at 51 on the country’s prime bourse DSE.

The DSE requested the stock brokers and merchant bankers for not providing any loan facilities to their clients for purchasing the shares of the company.

HeidelbergCement Bangladesh for the first time since its enlistment in the Dhaka Stock Exchange in 1989, declared no dividend for 2019 as the company incurred Tk18.64 crore loss.

According to the disclosure, HeidelbergCement’s earnings per share (EPS) plunged to negative Tk3.30 in 2019.

In 2018, it made Tk80.97 crore in net profit, EPS was Tk14.33 and disbursed 75% cash dividend.

Taking to Dhaka Tribune, a high official of the company said the 5% advance income tax on imports of raw material imposed in the current budget was the main reason behind the loss. The tax, however, was reduced to 3% on January 1, he informed.

HeidelbergCement Bangladesh Limited is a sister concern of Germany-based multinational company Heidelberg Cement.

The annual general meeting (AGM) of HeidelbergCementwill be held on June 24 at 11:00am in Rupgonj, Narayangonj. The record date is June 14.

Z-category Companies’ are those who fail to hold annual general meetings (AGMs) or fail to declare any dividend based on their annual performances or which are not in operation continuously for more than six months.

The principal activity of the company is manufacturing and marketing of gray cement under the brand name of “Ruby Cement” and “Scan Cement”.