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Aziz Pipes Limited has announced resumption of production from October, after being closed for around Ten months.
The announcement came as a boon for the listed company as it turned out the top gainer at the Dhaka Stock Exchange (DSE) on Sunday.
The share price of the company jumped 10 per cent to close at Tk 130.9.
In a corporate declaration to the DSE on Sunday, the PVC pipe manufacturing company said that the board of directors decided to go back to production from next October.
Earlier on January 10, the company announced a halt in production in the face of skyrocketing price of raw materials amid the Covid-19 pandemic.
The PVC supplier informed the DSE that they were not receiving raw materials on time due to coronavirus situation and their stock had already dried out.
Besides, the prices of raw materials in the local market rose abnormally.
Against the backdrop, the company’s board of directors decided to stop production from 10 January.
Despite not being in production since January, Aziz Pipes witnessed steady uptick in its share price until March.
After recording sharp fall from May to July, the price returned to the upward trend at the end of July and retained it till now.
According to the company sources, production will be resumed as the raw material market has stabilized again.
The Business Post contacted Aziz Pipe Company Secretary AHM Zakaria, but he declined to comment in this regard.
The company has been facing losses since last fiscal year. In the first nine months (July-March) of FY2020-21, it incurred a loss of over Tk 25 lakh, which is Tk 0.47 per share.
In the same period of FY2019-20, the company’s profit after tax was around Tk 13.77 lakh, while earnings per share were Tk 0.26.
In the fiscal year 2018-19, the profit after tax was Tk 48.62 lakh, which came down to Tk 13.91 lakh in the fiscal year 2019-20.
The company was listed in the stock market in 1986 and does not provide dividends regularly.
It paid only one per cent cash dividend last year.
