HR Textile incurs record Tk57cr loss in FY24
Owing to the substantial losses, the 100% export-oriented knitting, dyeing, finishing, and garments manufacturer decided not to pay any dividends to its shareholders
HR Textile Mills – a concern of Pride Group – incurred a record loss of Tk57 crore in the fiscal 2023-24, representing a loss of Tk19.67 per share.
Owing to the substantial losses, the 100% export-oriented knitting, dyeing, finishing, and garments manufacturer decided not to pay any dividends to its shareholders.
According to data from the Dhaka Stock Exchange (DSE), over the last nine fiscal years, from 2014-15 to 2022-23, the textile sector firm paid dividends ranging from 15% to 5%, in both cash and stock.
As an immediate effect, HR Textile's share fell 5.96% on Tuesday to Tk26.80 each.
Keep updated, follow The Business Standard's Google news channel
An analysis of its four-quarter financials reveals that the company managed to make a profit only in the first quarter, from July to September 2023.
However, it incurred losses in the following three quarters, with substantial losses recorded in the final quarter, from April to June 2024, according to the company.
In the first nine months, up to March 2024, its loss per share was Tk5.89, but for the entire year, the loss per share rose to Tk19.67.
Regarding the losses, the owners and officials could not be reached for comments over the phone.
The annual general meeting of the company is scheduled for 19 March 2025. To identify its shareholders, the record date has been fixed for 22 January.
The company's net asset value per share almost halved to Tk21.43 from Tk41.33 at the end of June 2023 and its negative net operating cash flow per share narrowed to Tk10.90.
Failure to disclose Jul-Sep financials
HR Textile failed to publish its first-quarter financials for the period ended September 2024 within the stipulated time mandated by the listing rules.
On 1 December, the company announced that the Bangladesh Securities and Exchange Commission (BSEC) had granted an extension until 3 January for submitting the first-quarter financial statements.
In November last year, HR Textile's auditor, SK Barua and Co, raised concerns that Fashion Knit Garments, a related party of the publicly listed HR Textile Mills, was utilising the latter's factory premises for business operations without any formal rental agreement.
Additionally, shareholders of HR Textile were left in the dark as the listed firm did not publish any disclosure regarding leasing out its factory to facilitate another company's operations, without any apparent benefits.
Fashion Knit and HR Textile share common directors and have had business relations for several years, with HR Textile supplying fabrics to Fashion Knit.
