Bashundhara Paper incurs loss of Tk31cr in Jul-Sep

Bashundhara Paper Mills, a concern of the Bangladeshi conglomerate Bashundhara Group, which manufactures paper and diversified tissue products, reported a loss of Tk31 crore in the July-September quarter of the current fiscal year.

According to the company's price-sensitive statement, its loss per share stood at Tk1.80 during the quarter.

The company's revenue dropped by 21.59% to Tk267 crore in the first quarter of FY25 compared to the same period last year. Increased finance costs due to higher interest rates and a significant debt burden contributed to the loss, as per the unaudited financial statement.

The report further highlighted an 85% increase in interest expenses, which rose to Tk61.77 crore during the quarter, compared to the same period last year.

Bashundhara Paper said in its report that rising utility costs, exchange rate fluctuations, a hike in raw material prices, and increased borrowing interest rates collectively led to the loss.

The company's share price closed at Tk32.10 on Thursday at the Dhaka Stock Exchange.

Meanwhile, Bashundhara Paper's sister concern, Meghna Cement, also reported a loss of Tk10.39 crore in the first quarter of this fiscal year.

During the quarter, Meghna Cement's revenue declined by 48% to Tk16.56 crore, compared to the same period last year.

In its unaudited financial statement, Meghna Cement attributed the loss to political unrest and extended general holidays, which delayed the opening of letters of credit (LCs) and caused a significant dollar shortage.

The company attempted to open LCs, but the bank required a 120% margin. Additionally, the interest rate increased from 9% to 14.50%, and raw material prices rose substantially, further contributing to a decline in profit, the report added.