Financial performance analysis of IT and telecom companies in the Dhaka Stock Exchange

Abstract

Standard Chartered Bank (SCB) was established in 1905. However, it established its first branch in Chittagong in 1948. It is the largest international bank in Bangladesh with 26 Branches, 57 ATMs and 7 Financial Kiosks and is the only foreign bank in the country with presence in 6 cities including the country's only offshore banking units inside Dhaka Export Processing Zone (DEPZ) at Savar and Chittagong Export Processing Zone (CEPZ). It has its worldwide presence in Asia, Europe, Africa, Middle East, Australia and Latin America. The organizational chart of SCB follows a top to bottom hierarchy and it provides a huge range of services ranging from Green banking to Islamic banking. in the market HSBC and SCB are having head on head competition but SCB is standing strong due to its efficiency and well utilization of opportunities against the threats. Among a long list of department there is a department called Global markets department of SCB which has a main unit called Financial market sales (FM Sales). FM Sales mainly buys and sales currencies to the corporate clients. They also offer financial derivatives and do swap contracts. The Environment in the head office is very reserved and the access to different information is being secured through a number of measures like intranet cctv and card lock doors. But the best thing about SCB is their collaboration and teamwork. They are not only working effectively but also are increasing their efficiency through continuously upgrading their system and automating the repetitive works. They have fine dining facilities and indoor gaming facility to find recreation after working for long hours. SCB also facilitates a fine balance between work life and family life by offering paid mandatory leaves and annual countryside and abroad family picnics. For helping SCB to make decision on investing on the IT industry a comparative analysis is done on the financial performance of IT (Information Technology) and Telecom sector in the Dhaka stock Exchange. There are four companies which are AAMRATECH, INTECH, GP and BDCOM and their performance is being measured based on four dimensions which are liquidity, efficiency, profitability and solvency. Among the chosen companies INTECH is performing better than all other companies and BDCOM is having the second position.GP and AAMRATECH needs improvement in their performance and incase of GP it has faced a loss in year 2011-2012, which seemed to be recovered in the forwarding years. That gives an indication that GP is actually performing well but just fall behind due to one year's loss.