Production cost eats up 90% of Aramit’s revenue in H1

Aramit Limited, a publicly traded company, had to spend 90 per cent of its revenue for production cost in the first six months of the current fiscal year, thanks to a staggering price hike of raw materials.

The listed company in the July-December period of FY23 generated revenue of Tk 14.74 crore, while its manufacturing cost stood at Tk 13.12 crore, according to a filing posted on the Dhaka Stock Exchange (DSE) website recently.

The company posted a profit after tax of Tk 1.33 crore in H1 of the fiscal 2022-23, down from the profit of Tk 1.87 crore in the same period last fiscal.

The company’s earnings per share (EPS) also fell to Tk 2.23 for H1 of the current fiscal from Tk 3.12 for the same period last year.

There had been a very negative impact on the company’s earnings during the current fiscal’s first half due mainly to soaring production cost, caused by an unusual hike of raw materials prices in the global market, as per the DSE filing.

The company produces large-section and lightweight corrugated sheets, flat sheets, moldings, and pipes. Aramit shares closed at Tk 264.9 per share on the DSE trading floor on Thursday.