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Aziz Pipes Limited is set to resume its production from October 1 after a closure of around 10 months.
The board of directors of the company took this decision in a recently held meeting, said a filing posted on the website of the Dhaka Stock Exchange (DSE) Monday.
Earlier on November 8, 2021, the PVC pipe manufacturer announced the closure of its factory production in the face of skyrocketing prices of raw materials amid the Covid-19 pandemic.
The company informed the DSE that they were not receiving raw materials in time due to the coronavirus situation and their stock had already run out. Besides, the prices of raw materials in the local market had also risen abnormally.
Against this backdrop, the company’s board of directors decided to stop production on January 10.
Despite not being in production since January, Aziz Pipes witnessed a steady uptick in its share price until March.
After recording a sharp fall from May to July, the price returned to the upward trend at the end of July and has retained it till now.
Meanwhile, despite the production halt, the price of each share of Aziz Pipes rose by 46 per cent in the last nine working days to trade at Tk 140.3 on Sunday.
On Monday, its share price fell by 8.55 per cent to Tk 128.30 on the Dhaka bourse.
The Business Post contacted Aziz Pipe Company Secretary AHM Zakaria but he declined to make any comment.
The company has been facing losses since the 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 (EPS) were Tk 0.26.
In FY2018-19, the profit after tax was Tk 48.62 lakh, which came down to Tk 13.91 lakh in FY2019–20.
The company was listed on the stock market in 1986 and does not provide dividends regularly. It paid only one-per cent cash dividend last year.
