Bashundhara Paper suffers Tk249cr loss amid raw materials crisis

Bashundhara Paper Mills, a listed company on the stock exchanges, incurred a Tk249 crore loss in the first half of the current fiscal year due to raw material shortages and price hikes, as well as rising utility and borrowing costs.

In last fiscal year, it faced a blow with incurring loss of Tk330 crore.

During the July to December, Bashundhara Paper Mills reported a loss per share of Tk14.34, which was Tk5.84 at the same time of the previous fiscal year. 

In H1 of FY25, it incurred a loss of Tk101 crore. 

Explaining the sharp fall in earnings per share (EPS), the company said operating profitability declined due to raw material shortages, higher utility expenses, a steep increase in raw material prices, and rising borrowing costs following interest rate hikes.

"As a consequence, the company's EPS decreased significantly," it said. 

According to its half-yearly financial statements, the company's revenue plunged by 72% to Tk113 crore in the first half (H1) of FY26, down from Tk410.47 crore in the same period of the previous fiscal year—a decline of about Tk297 crore.

The report showed that its finance cost soared by 31% to Tk204 crore. As of December, long-term loans of Bashundhara Paper Mills stood at Tk2,118 crore, and short-term borrowings Tk581.85 crore.

In the second quarter, its revenue plunged to Tk81 crore, and incurred a loss of Tk134.59 crore, which was Tk143.22 crore and Tk70 crore respectively. 

The net operating cash flow per share increased to Tk6.90 during the July to December against Tk5.41 at the same time of the previous fiscal year while its net asset value per share declined to Tk43.52, which was Tk57.82 as of 30 June 2025, its report showed. 

The company said cash flow improved primarily due to a decrease in payments made to suppliers and other operating creditors, which positively impacted the company's overall operating cash position.