Beacon Pharmaceuticals, which makes more than 200 generic drugs and 65 oncology products, saw a 7.38 percent decline in profits during the July-March period of 2023-24, owing mainly to a rise in interest rates.

According to the company's unaudited financial statements, it paid Tk 71.80 crore as interest to banks in the first nine months of this fiscal year compared to Tk 16.81 crore in the same period of the preceding year.

Beacon's profit reduced to Tk 54.93 crore in the first nine months of the ongoing financial year.

It was Tk 59.31 crore in the same period of last fiscal year. However, the revenue stood at Tk 773.73 crore whereas previously it was Tk 635.45 crore.

Still, earnings per share amounted to Tk 2.38 whereas previously it was Tk 2.57.

"Our financial expense has increased," said Monjurul Alam, chief executive officer at Beacon Medicare Limited, a concern of Beacon Pharmaceuticals.

"...as the interest rate in banks grew from 7 percent to over 14 percent during last six months, particularly in the third quarter, which contributed to reduced profit margin," he said.

On the other hand, production of life-saving drugs was seriously hampered due to an inadequate supply of gas, he said.

Against this backdrop, although prices of some medicines rose significantly due to a rise in the cost of imported raw materials, revenue did not increase substantially.

Alam said there could have been a significant increase in profit had the interest rate not swelled.

He said the interest rate ballooned immediately after Bangladesh Bank lifted the lending rate cap.

In the January-March quarter of the current fiscal year, the company paid Tk 25.46 crore as interest to banks.

It was only Tk 1.06 crore in the same period of the last fiscal year.

In FY2022-23, the company provided a 16 percent dividend to its shareholders.

Stocks of Beacon Pharmaceuticals closed at Tk 177.90 at Dhaka Stock Exchange yesterday, declining by 2.95