Written by The Banking Post
Genex Infosys posted another year of weaker earnings, with profit falling 17.18 per cent year-on-year to Tk 261.38 million in FY25, dragged down by rising costs from its aggressive diversification drive.
The listed BPM and IT services company reported earnings per share (EPS) of Tk 2.17, down from Tk 2.62 in the previous fiscal year. The full-year result came as a surprise to investors, as the company had already booked Tk 252.95 million in profit in the first nine months, reflecting only 3.33 per cent year-on-year growth in the final quarter.
Genex’s profitability has been weakening for two consecutive years. Net profit dropped 21.7 per cent in FY24, followed by this year’s 17.18 per cent decline. Industry analysts say the company is still expanding its business, but profit is slipping because the expansion has become increasingly expensive and risk-heavy.
Genex initially built a strong position in IT outsourcing and call-centre operations, generating stable revenue. But its rapid push into infrastructure projects, telecom-related ventures, and other new areas has brought higher upfront costs, rising debt, and execution challenges. These pressures are now eroding the benefits of revenue growth, resulting in lower net profit despite expanding operations.
Reflecting the weaker earnings, Genex declared only a 1 per cent cash dividend for general shareholders—its lowest payout since listing.
The company, however, improved its cash generation. Operating cash flow rose to Tk 6.87 per share in FY25, up sharply from Tk 3.85 a year earlier.
Genex shares closed at Tk 24.50 on Thursday on the Dhaka Stock Exchange. Based on audited earnings, the company’s price-to-earnings ratio stood at 11.29, while its dividend yield was 0.63 per cent on the FY24 payout.
