SK Trims reports Tk10.8cr loss in H1 of FY25 as revenue plunges 58%
Company officials said production has resumed and efforts are underway to recover lost foreign orders, which are showing signs of gradual improvement
SK Trims and Industries Ltd, a publicly listed firm in the miscellaneous sector, has reported a Tk10.80 crore loss in the first half of the 2024-25 fiscal year, following a sharp 58% drop in revenue.
After missing the deadline for publishing half-yearly financial statements, SK Trims released its results yesterday, which had been approved by the board on Wednesday.
The 100% export-oriented company was forced to shut its factory for about a week in mid-2024 after all its bank accounts were frozen in connection with a corruption case involving former National Board of Revenue (NBR) official Motiur Rahman.
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As a result, the company faced significant order cancellations from foreign buyers, leading to a sharp decline in revenue and turning its profits into losses, according to company sources who requested anonymity.
Company officials said production has resumed and efforts are underway to recover lost foreign orders, which are showing signs of gradual improvement.
In a price-sensitive information (PSI), SK Trims reported that its revenue plunged to Tk19.38 crore, which was Tk45.96 crore in the first half of the previous fiscal year.
It incurred a loss of Tk10.80 crore with a per share loss of Tk1.31. During the same time of the previous fiscal year, it made a profit of Tk7.37 crore with an earnings per share (EPS) of Tk0.87.
Net operating cash flow per share also turned negative at Tk0.73 in H1, from a positive Tk0.98 in the same period of FY24, according to its financial reports.
In the second quarter (October–December), revenue nearly halved to Tk11.20 crore from Tk23.71 crore in Q2 FY24. The company posted a quarterly loss of Tk6.64 crore, or Tk0.78 per share, compared to a profit of Tk3.05 crore and EPS of Tk0.36 in the same quarter last year.
SK Trims raised Tk30 crore from the capital market through an initial public offering (IPO) under the fixed price method.
The company, which began operations in 2014, produces sewing thread, elastic, poly, cartons, photo cards, back boards, bar codes, and other accessories for the export-oriented garment industry.
In FY24, it reported a Tk4.55 crore profit and paid a 1.75% cash dividend. The previous year, its profit stood at Tk7.97 crore.
