Standard Ceramic shares surge despite losses in first nine months of FY25

Shares of Standard Ceramic Industries Ltd surged by 5% on Wednesday, even though the company reported a loss for the first nine months of the fiscal year 2024–25.

According to the Dhaka Stock Exchange (DSE), the company's shares gained Tk3 or 5%, closing at Tk63.

In a disclosure filed with the DSE, the company reported a net loss of Tk8 crore for the July–March period of FY25, down 20% from the same period a year earlier. Loss per share stood at Tk12.28 at the end of March, compared to Tk15.31 during the same period last year.

The company's net asset value (NAV) per share was negative Tk50.12 as of March 2025.

In a price-sensitive statement, Standard Ceramic attributed the continued losses to several compounding factors, including a sharp rise—around 60%—in gas prices, high costs of imported raw materials, and irregular gas and electricity supply with low pressure. These challenges have significantly impacted production costs, sales, and profitability.

Due to these operational constraints, its board of directors suspended production in January 2024. The company noted that it has continued to incur losses due to unavoidable fixed costs and interest on bank loans.

It also stated that the temporary factory shutdown has rendered some vehicles idle, leading to rust and depreciation. Consequently, the board has approved the sale of the vehicles, with proceeds to be used for settling liabilities.

Additionally, Standard Ceramic disclosed that it owns 111 decimals of land in a hilly area of Sherpur, which has not yet been officially mutated with the assistant commissioner (land). As the land provides no operational benefit, the board has decided to dispose of it. Funds from the sale will also be used to repay outstanding dues.

Due to the suspension of operations, Standard Ceramic was reclassified from the "B" category to the "Z" category in February 2024.