Home ›› 18 Oct 2022 ›› Stock
Far Chemical Industries Limited, a listed company that had been inoperative due to mounting losses for about three months this year, has now announced it would be able to make an earning of Tk 66 lakh per day from the second quarter of the fiscal year 2022-23.
According to this claim, the company would have an earning of Tk 59.4 crore in a quarter from FY23.
According to a disclosure posted on the website of the Dhaka Stock Exchange (DSE) on Monday, the company started a new spinning mill on a trial basis from Monday that would go for commercial production next month.
The company announced the new spinning unit would enable it to log an estimated revenue of Tk 233 crore annually.
According to the company profile, FAR Chemical Industries Limited is a Comilla EPZ-based company manufacturing textile chemicals needed for export-oriented textiles.
The major products it manufactures include softening agents, retarding agents, leveling agents, scouring agents, fixing agents, bleaching agents, anti-foaming agents and stabilisers, and more.
The company posted revenue of Tk 59.16 crore in the fiscal year 2020-21 versus the amount of Tk 75.66 crore in the previous year.
Due to the decreased revenue, the company could not have logged any profit that year.
As per the company’s un-audited third quarter (January-March) report for FY22, no revenue was earned as the company had no production at that time, resulting in a loss in earnings per share (EPS) of Tk 0.17, compared to the loss of Tk 0.02 in the same period of the previous fiscal.
According to the DSE filing, once the spinning unit goes for commercial operation, it would have a capacity to produce 18 tonnes of yarn per day.The company did not respond to phone calls for a comment regarding the matter.
Earlier in November last year, FAR Chemical Industries Ltd announced it was going to acquire SF Textile— a non-listed export-oriented yarn spinning company — with the latter’s all assets and liabilities.
Later in May this year, the company further announced its shareholders had approved the acquisition of SF Textile in an extraordinary general meeting.
The company, however, did not clarify in Monday’s announcement whether it ran the new spinning unit through the acquisition of SF Textile mill.
SF Textile Industries, a Narayanganj-based spinning company, has been in operation since 2016 with a production capacity of 42,250 spindles of cotton, viscose, and CVC yarn.
Despite this big disclosure, the stock price of Far Chemical Industries fell by 1.2 per cent to Tk 12.2 per share on the trading floor of the DSE on Monday.
With a market capitalisation of Tk 292 crore it has a paid-up capital base of Tk 218 crore and a surplus reserve of Tk 80 crore. In the Q3 of FY22, it reported a net loss of Tk 3.69 crore, compared to a loss of Tk 34 lakh in the same period of the previous year.
