Shasha Denims incurs Tk122cr losses for closed power plant
Shasha Denims Limited incurred losses worth Tk122 crore in fiscal 2021-22 due to the shutdown of its power plant despite making a profit of Tk40 crore in its clothing business.
Finally, the company's net loss in the last financial year stood at Tk81 crore, with earnings per share (EPS) turning negative to Tk5.75, according to the auditor.
However, the company's consolidated profit was Tk1.02 per share in the previous financial year.
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The company had reported that its net profit stood at Tk14 crore in the financial year of 2020-21.
Sources said Energis Power Corporation Ltd, a subsidiary company of Shasha Denims, signed an agreement with the Bangladesh Power Development Board (BPDB) on 28 December, 2008 for a three-year term to provide 55MW of net electricity.
Commissioned on 10 January 2010, the 55-megawatt (MW) power plant started commercial operations from 6 May of the same year and supplied power to the national grid.
The plant has remained closed since July 2019 after the expiration of its power purchase agreement with the government. So, the company wants to sell the power plant as per its net asset value. For this, Shasha Denims, in its next annual general meeting, will take approval from its shareholders.
Despite the loss, the company has decided to give 10% cash dividends to its shareholders in the last financial year.
Shasha Denims convened the Annual General Meeting virtually on 20 December to get approval for the annual audit report for the year ended 2022 and declared a 10% cash dividend for the shareholders.
Meanwhile, the company's share price has been stuck at the floor price on the Dhaka Stock Exchange since 15 September. The price of its shares now stands at Tk27.
