Dacca Dyeing attributes increased FY24 loss to gas line disconnection

The Dacca Dyeing and Manufacturing Company, one of the oldest home textile manufacturers in the country, faced a significantly larger loss in the fiscal year 2023-24 compared to the loss it reported in the previous fiscal year.

The company has attributed the loss to a decreased turnover caused mainly from the suspension of the factory's gas line connection.

The company could not recommend any dividend for their shareholders for FY24. 

In FY24, the company reported a loss of Tk22.49 crore, up from the Tk5.05 crore loss incurred in the previous year.

It's per-share loss also rose to Tk2.58 from Tk0.58 a year ago. Its net asset value per share stood at Tk31.51 at the end of June 2024.

The annual general meeting (AGM) has been fixed for 30 January, and to identify shareholders of the company, the record date has been fixed on 7 January 2025.

On 4 August this year, its share price closed at Tk8.40, which reached Tk14.4 within six trading days. The share price of the company decreased by 3.08% to Tk12.60 on the Dhaka stock exchange on Wednesday.   

The company explained in its statement that the drop in profit for the year ending 30 June 2024 was mainly due to a reduced turnover caused by the factory's gas line being disconnected by Titas Gas Transmission and Distribution Company Ltd.

Furthermore, the management decided to set aside provisions for doubtful debts, including amounts owed by customers (receivables) and for advances and prepayments, which also impacted the financial results. 

As of 30 November 2024, the sponsors and directors jointly hold 30.10% of the company's shares, while institutes 18.60%, foreign investors 0.55% and general investors hold 50.75%.   

The company was listed on the bourses in 2009. In FY22, the company recommended a 0.25% cash dividend for its shareholders.