Maksons Spinning’s losses deepen amid rising costs
Maksons Spinning Mills, a concern of Maksons Group, has reported an amplified net loss in the first quarter of the current fiscal year, driven by rising costs.
During the July to September 2024 quarter, the company's net loss increased to Tk40.74 crore, compared to Tk25.25 crore during the same period of the previous fiscal year.
Regarding the losses, the spinner said that profit declined primarily due to a significant increase in raw material costs, salaries and wages, utility expenses, interest rates, and other financial charges, all of which rose substantially.
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Its loss per share increased to Tk1.71 against Tk1.06 in the same time of the previous year, according to a disclosure published on Sunday. While its net asset value (NAV) and net operating cash flow per share significantly decreased.
Its net operating cash flow was negative at Tk3.51, compared to a negative Tk0.74 during the July to September 2023 period.
It the disclosures, the company said cash flow decreased during the period due to higher costs and increased expenses compared to the same period in the previous year. Operating losses further contributed to a decline in net asset value (NAV) during the period.
The spinner decided not to pay any dividends to its shareholders for 2023-24 fiscal as it incurred significant losses. Owing to failure of paying dividends, the Dhaka Stock Exchange (DSE) downgraded the company to the Z category from the A category.
On Sunday, its shares price declined by 1.39% to Tk7.10 each at the DSE.
In November, Maksons Spinning had decided to increase its ownership stake in its sister company, Maksons Textile Ltd.
To achieve this, the company plans to acquire an additional 2 crore shares of Maksons Textile at Tk10 per share. The total investment for this acquisition is Tk20 crore.
