Bangladesh Submarine Cables PLC's profit declined 20 percent year-on-year in the first quarter of the current financial year as revenue fell while costs went up.

Profit of the company slumped to Tk 48.06 crore in the July-September quarter.

Diluted earnings per share (EPS) dropped to Tk 2.57 from Tk 3.22 in the same quarter last year, according to a disclosure on the website of Dhaka Stock Exchange.

Basic EPS is calculated by dividing net income by the number of outstanding shares. In contrast, diluted EPS considers the potential dilution from convertible securities.

The company said the EPS was impacted for a decrease in revenue generated from international private leased circuit (IPLC) rent and IP transit services, coupled with increased operational and maintenance costs.

An IPLC offers organisations continuous bandwidth that is both private and secure, providing end-to-end connectivity, and IP transit is where an internet service provider allows traffic to cross its network to reach a destination.

The issuance of 22.1 million new shares to the government of Bangladesh in September also contributed to the diluted EPS, said Bangladesh Submarine Cables.

Its net operating cash flow per share (NOCFPS) saw a significant drop, hitting Tk 1.91 compared to Tk 5.23 in the previous year, which the company cited was mainly due to lower customer onboarding and the recent share issuance.

Shares of the company fell by 2.41 percent to Tk 117.2 as of yesterday noon.