For eight companies, Covid-19 restrictions were blessings

Eight listed companies reported significant earnings and profits in the first quarter of the previous fiscal year when the first wave of Covid-19 was still raging, but they have failed to retain the gaining streak and plunged into losses in this year’s first quarter when the pandemic restrictions were lifted.

Of the companies, five came from the textile sector while the other three from the power, chemical, and tourism sectors.

They registered negative earnings per share (EPS) in the July-September period of the ongoing fiscal year, according to reports filed by the companies with the Dhaka Stock Exchange (DSE).

The companies are Anlimayarn Dyeing, Delta Spinners, Hakkani Pulp and Paper Mills, Global Heavy Chemicals, Khulna Power Company, Saiham Cotton Mills, Argon Denims, and Sea Pearl Beach Resort and Spa Limited.

According to the DSE data, the eight companies’ consolidated net losses stood at Tk 68.16 crore in the first quarter of the ongoing fiscal year, when their total net profits were Tk 106.48 crore in the same period a year ago.

The poor performance has been attributed to decreased sale of their products and services.

As per its unaudited report, Anlimayarn Dyeing incurred a loss of Tk 27 lakh in the July-September period of ongoing fiscal. Its net profits were Tk 20 lakh in the same period a year ago.

Its earnings per share stood at negative Tk 0.15 in the first quarter when the EPS was Tk 0.11 in the previous year’s corresponding period.

Delta Spinners reported an EPS of negative Tk 0.04 for the July-September period, which was Tk 0.03 a year ago.

Hakkani Pulp and Paper Mills’s per-share loss stood at Tk 0.49 in the first quarter this year, against earnings per share of Tk 0.022 in the previous year.

The company recommended 1 per cent cash dividend for general shareholders, other than sponsors shareholders, for the year ended on June 30, 2021.

Apart from that, Global Heavy Chemicals’ per share loss stood at Tk 0.21 for in July-September quarter this year, when it reported Tk 0.17 per-share earnings in the previous year’s same quarter.

The company witnessed significant decline in sale during the period, which finally translated into negative earnings, its explained.

At the same time, net operating cash flow per share (NOCFPS) is on the wane due to a decrease in sales collection and increase in gas expenses and party payments, it added.

During the period, Khulna Power Company, the country’s first independent power producer, registered per share loss of Tk 0.10 in the period. Its earnings per share were Tk 0.91 in the same period a year ago.

Two of its power plants have been shut since May as per instruction of Bangladesh Power Development Board, forcing it to incur losses.

Besides, Saiham Cotton Mills’ per share loss stood at Tk 0.46 in the first quarter, when its earnings per share were Tk 0.15 in the corresponding quarter of the previous year.

The company informed the DSE that due to a destructive fire accident in its raw cotton warehouse on October 15, 2020, it sustained a loss of Tk 12.69 crore, resulting in poor performance.

During the period, Argon Denims reported per share loss of Tk 0.57. Its earnings per share were Tk 0.26 in the same period of FY21.

Sea Pearl Beach Resort and Spa, a five-star hotel in Cox’s Bazar, posted Tk 0.09 per share loss in the first quarter when its earnings per share were Tk 0.12 in the previous year’s same quarter.