Cost escalation hits Maksons Spinning, widening losses
It incurs Tk83cr losses in July-December
Losses of Maksons Spinning Mills – a concern of Maksons Group – widened further in the first half of the current fiscal year due to rising costs and a decline in overall sales.
According to a stock exchange filing, the company incurred a per-share loss of Tk3.49 during the July-December period, amounting to a total loss of Tk83 crore, compared to
In the same period of the previous fiscal year, its loss was Tk45.74 crore, with a per-share loss of Tk1.92.
Regarding the deviation in its financials, the company stated that its earnings per share (EPS) decreased due to a decline in turnover.
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Additionally, raw material costs, salaries and wages, and utility expenses increased, while financial charges rose significantly due to higher interest rates, the disclosure reads.
The spinner, which was listed on the bourses in 2009, has been struggling amid a business downturn and has incurred substantial losses for two consecutive fiscal years, FY23 and FY24.
Over these two years, it reported a total loss of Tk181 crore, according to its annual report.
The loss-making trend has continued into the current fiscal year, with significant losses. In the second quarter, Maksons Spinning incurred a loss of Tk42.16 crore, translating to a per-share loss of Tk1.77.
In the same period of the previous year, its loss was Tk20.48 crore, with a per-share loss of Tk0.86.
Its net operating cash flow per share stood at a negative Tk4.50 for the July-December period, compared to a negative Tk2.82 in the same period of the previous fiscal year.
Meanwhile, its net asset value per share stood at Tk8.81 as of December 31, 2024, down from Tk12.29 as of June 30, 2024.
The company attributed the decline in net operating cash flow to increased costs and other expenses compared to the previous year. It also stated that losses from operations resulted in a decrease in net assets during the period.
In November last year, the Dhaka Stock Exchange (DSE) downgraded the spinner to the Z category due to its failure to declare dividends for shareholders for two consecutive years amid substantial losses.
On Thursday, its shares closed below the face value at Tk6.90 each on the DSE, marking a 1.43% decrease from the previous trading session.
