Meghna Cement incurs Tk78cr loss in nine months
During the same period of the previous fiscal year, it had made a profit of Tk1.53 crore
Meghna Cement Mills, a concern of Bashundhara Group, incurred substantial losses in the first nine months of FY25, with most of the losses occurring in the third quarter (January to March), according to its financial statement.
The company's unaudited report shows that during the July to March period of the current fiscal year, the company incurred a loss of Tk79 crore, while the per-share loss was Tk24.95.
During the same period of the previous fiscal year, it had made a profit of Tk1.53 crore.
Keep updated, follow The Business Standard's Google news channel
In the last three months during the January to March quarter, the company recorded a loss of Tk49 crore, with the per-share loss at Tk15.48.
The cement maker said due to various unavoidable circumstances, it refrained from importing or procuring available materials in accordance with their machine capacity.
On the other hand, though the company and Bashundhara Ready Mix Industries reached an agreement on contract manufacturing, they were unable to open a letter of credit (LC) on time because of a significant amount of dollar crisis.
While they seek to initiate an LC, the bank mandates a 120% margin as a prerequisite, said the cement maker.
The increased interest rate from 9% to 14.50%, coupled with the rise in raw material prices, has resulted in a decrease in both profit and earnings per share (EPS) as well, it added.
Its net operating cash flow per share stood negative at Tk7.75 from July 2024 to March 2025. It remained negative at Tk7.99 during the corresponding period of the previous fiscal year.
On Sunday, its shares price declined by 0.26% to Tk39 each at the Dhaka Stock Exchange (DSE).
