Factory relocation drags Far Chemical’s Q2 revenue to zero
The process of amalgamation of the company with SF Textile is underway
Publicly listed company Far Chemical Industries earned no revenue in the October-December quarter (Q2) of fiscal 2021-22 due to a halt in operation owing to its factory relocation from Cumilla EPZ to Rupganj in Narayangonj, according to its latest financial statement.
Besides, the chemical supplier incurred a Tk3.52 crore loss in the first half of fiscal (July-December), the statement said, and its revenue dropped by 89% to Tk3.48 crore during the period.
"Our sales were nil as we started shifting our factory during the second quarter," the statement reads.
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Far Chemical officials believe the process of factory relocation would be completed within June of this year and it would help make a change. "Shifting to our owned premises will bring a positive future," Shirazul Haque, managing director of the company, said earlier.
Far Chemical paid a 1% cash dividend for the year ending on 30 June 2021, although it incurred a Tk3.49 crore loss in the fiscal. The loss was Tk7.21 crore in the previous fiscal (FY20).
The paid-up capital of the company is Tk218.09 crore. As of 31 January 2022, the sponsors and directors jointly held 30.24% of shares, while institutions held 13.73% and the general public 56.03% of shares of the company.
The last trading price of each share at the Dhaka Stock Exchange was Tk12.10 on Thursday.
Amalgamation with SF Textile underway
Far Chemical Industries is a concern of Far Group that was established in 1993. The group late last year decided to merge its non-listed firm SF Textile Industries with Far Chemical Industries to produce better outputs.
SF Textile Industries is a 100% export-oriented spinning mill that has been in operation since 2016.
The shareholders of Far Chemical also approved the merger proposal in the annual general meeting held in December 2021. Afterwards, the company applied to the Bangladesh Securities and Exchange Commission (BSEC) seeking approval for the amalgamation.
Instead of direct approval, the BSEC decided to investigate the textile factory first. For this purpose, the securities regulator formed a three-member committee headed by its deputy director Mohammad Ratan Mia.
The committee was supposed to visit the SF Textile factory on 3 March and to submit the report within the next seven days.
Far Group has two other firms – ML Dyeing and RN Spinning Mills – listed in the capital market.
