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Ten publicly traded companies have suffered losses in the first half (July-December’21) of this fiscal year, though they were in profit in the same period a year ago.
The negative earnings were mainly attributed to decrease in their sales due to different sorts of adversities, according to the Dhaka Stock Exchange (DSE) data.
Of the companies, four came from the textile sector while the remaining ones are from the power, chemical, food, and engineering sectors.
The loss-making companies are - Khulna Power Company, Rahima Food, Saiham Cotton Mills, National Feed, Delta Spinners, Argon Denims, Central Pharma, Global Heavy Chemical, Zaheen Spinning, and Oimex Electrode Limited.
Khulna Power Company Limited (KPCL) incurred a loss of Tk 7 crore in July-December period of fiscal year 2021-22 when its loss per share stood at Tk 0.18.
The KPCL had bagged a profit of Tk 62 crore in the first half of the previous fiscal. Its earnings per share (EPS) were Tk 1.57 during the period.
Two of its power plants have been shut since May last year as per instruction of the Bangladesh Power Development Board, which forced it to suffer loss, it said in a DSE filing.
The power company’s revenue was zero during the July- December period, against Tk 341 crore of previous year’s corresponding period, according to the company.
Rahima Food reported loss per share of Tk 0.03 for the first half of this fiscal, against its earnings per share of Tk 0.08 in the same period a year ago.
The significant deviation in earnings is due to less income received from the bank as interest on deposits at a lower rate, the company said.
Besides, Saiham Cotton Mills’ per share loss stood at Tk 0.02 in the first six months in FY22, when its earnings per share were Tk 0.37 in the corresponding period in FY21.
The company, in a DSE filing, blamed the destructive fire accident it suffered at its raw cotton warehouse on October 15, 2020. Saiham Cotton faced losses worth Tk 12.69 crore in the accident.
In July-December period of FY22, Argon Denims reported a per share loss of Tk 0.48, against an EPS of Tk 0.64 in the same period of FY21.
Delta Spinners reported an EPS of negative Tk 0.05 for the July-December period, which was Tk 0.07 a year ago.
Its earnings decreased due to the Covid-19 pandemic as the factories remained closed for months as per government directives. Moreover, the supply of raw cotton was disrupted due to the pandemic-induced restrictions, the company said.
National Feed’s per share loss was Tk 0.01 in Jul-Dec’21, against earnings per share of Tk 0.55 in the same period a year ago.
The adaptation of new sales strategy of focusing on cash sales and strictly monitoring credit sales resulted in declining revenue growth during the period.
Moreover, the substantial increase in the price of maize, Soybean meal and other raw materials amid the pandemic expedited the negative run of its EPS.
The increase in factory overhead costs, selling and marketing expenses, and finance expenses were also responsible for the poor performance, it added.
Cental Pharma’s loss per share was Tk 0.18 in July-December’21. It reported earnings per share of Tk 0.16 for the same period in FY21.
Global Heavy Chemical reported loss per share of Tk 0.48 in the first half of this fiscal, against earnings per share of Tk 0.39 for July-December’20 period.
Decrease in sales was held responsible for the poor performance.
Meanwhile, Zaheen Spinning’s loss per share stood at Tk 0.44 in July-December period this fiscal, against an EPS of Tk 0.02 a year ago.
According to the company, its sales reduced due to production disruption, increase in administrative expenses, fire accident, renovation works, installation of new machinery, and other adversities.
All these factors caused a massive loss after tax, and its EPS decreased significantly during the period, it said.
According to the Dhaka Stock Exchange (DSE) data, more than 200 companies out of 345 listed firms disclosed their financial reports for July-December period of the fiscal year 2021-22.
