Standard Ceramic to borrow Tk 15cr to meet working capital

Standard Ceramic Industries Ltd will borrow Tk 15 crore from a bank as the prices of raw materials hiked in the international markets due to the ongoing war in Ukraine and the crisis of working capital.

“The company’s board of directors has decided to take bank loans valued at Tk 15 crore as additional working capital loan to solve the working capital crisis,” said the bank in a filing with the Dhaka Stock Exchange on Sunday.

The company also disclosed several factors that went into the loan application. They are; In 2019-20, their Glost Kiln was re-built and factory was partially laid off for 3 months, industry was closed down for 3 months due to pandemic , Currently Russia and Ukraine war pushed cost of all raw materials and recent flood also affected the market immensely.

In 2020, the company closed the production from March 26 to April 4 in the first phase and again from April 5 to April 11 in the second phase.

In 2019, Standard Ceramics closed a part of the factory from August 14 to October 14 for carrying out renovation work.

According to the financial report of the Q3 of this year, the company’s net profit was Tk 6.24 lac. It had a net profit of Tk 55.87 lac during the same period of the previous financial year same period.

At the same time, the company’s earnings per share (EPS) were Tk 0.10.

Its net asset value per share was Tk 7.42 as on March 31, 2022 and Tk 9.72 as on June 30, 2021.

The company recommended a 1 per cent cash dividend for fiscal year 2020-21 for its shareholders.

The company’s sponsors and directors jointly own 30.50 percent shares, institutional investors own 3.97 percent, and general investors own 65.53 percent.

Standard Ceramic Industries was incorporated as a public limited company in 1984 and went into operation in 1993. The company produces ceramic stone wares and tableware’s for local and foreign markets.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk160.40. It was listed in the country’s both stock exchanges in 1996.