Global Heavy Chemicals incurs Tk6cr loss in Q1 of FY26

Global Heavy Chemicals Limited has incurred a loss of Tk6.10 crore in the first quarter of the current fiscal year due to a sharp decline in sales and increasing fixed and financial expenses.

However, the net loss for the July–September 2025 quarter narrowed compared with the same period of the previous fiscal year. In the first quarter of FY25, the company posted a loss of Tk7.92 crore, according to disclosures.

In a filing with the stock exchanges today (14 December), the company said the continued losses stemmed from a steep fall in net sales to Tk2.19 crore from Tk17.13 crore a year earlier, while fixed costs and financial expenses rose to around Tk3 crore.

That is why, the company reported a net loss of Tk6.1 crore keeping earnings per share (EPS) negative despite a marginal improvement, it said.

Its net asset value per share stood at Tk71.05, and net operating cash flow per share at Tk0.85 in Q1 of FY26, compared with Tk71.89 and Tk0.61 respectively in the same time of the previous fiscal year.

The company said that the net asset value dropped slightly primarily due to the net loss and a reduction in retained earnings, while share capital, share premium, and reserves remained unchanged.

Despite the loss, cash flow from operations improved, supported by effective working capital management, including lower receivables and inventories and higher payables. These measures increased net cash from operating activities to Tk6 crore from Tk4 crore year-on-year.

In the last fiscal year, the company incurred a loss of Tk15.76 crore and, due to the continued losses, did not recommend any dividend for shareholders for FY25.