RAK Ceramics announces partial production suspension

The United Arab Emirates-based multinational company, RAK Ceramics (Bangladesh) Limited, has announced partial production suspension for 30 days from Monday over its power source RAK power plant maintenance. 

The company in a price sensitive disclosure published in the Dhaka Stock Exchange (DSE) website said its production lines are run by its own power plant named RAK Power Private Ltd.

The power plant will be shuttered for 30 days for maintenance, and ceramics production will also be suspended partially during the period.

The ceramic manufacturer has four tiles plants in the country with an annual production capacity of 12.30 crore square metres. Besides, it has a sanitary ware line with 50 lakh pieces annual capacity.

A senior official of the company said two titles making units of the total four will remain completely shut during the maintenance. The remaining two units will be in operation with 50% and 100% of production capacity respectively.

The sanitary ware line will continue operation with 70% of production capacity. After the completion of the maintenance, the company will resume operations.

Due to the pandemic-led 66-day countrywide shutdown, RAK's revenue came down by 66% to Tk50 crore in the second quarter of 2020 compared to the previous quarter same year. The company also posted Tk19 crore loss in that quarter.

However, the company managed to recover as the shutdown ended, thanks to countrywide construction works resumption.

In the third quarter this year, the company posted a revenue of Tk144 crore and a net profit of Tk8.92 crore.

The company gave a 15% cash dividend to its shareholders in 2019 -- the lowest since RAK got listed on the country's premier bourse in 2010.

The closing price of RAK shares was Tk26.40 per share at the DSE on Monday. In the last year, RAK shares rose to their highest price of Tk35.60 per share.

RAK Ceramics PJSC, UAE holds 68.13% of the company's total shares.