Covid-19: Dulamia cotton factory shut operations indefinitely
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The board of directors of Dulamia Cotton Spinning Mills Ltd has decided to shut the operation of the factory for an indefinite period due to the ongoing Covid-19 pandemic.
“The board of directors in a meeting held on Saturday, under compelling current circumstances, decided to close down the operation of the factory until further notice,” said an official disclosure on Sunday.
The deadly Covid-19 virus continued spreading across the country and many other countries, disrupting global supply chain, export and import activities which prompted many listed companies to close their factory for the time being.
Market analysts said the coronavirus pandemic is affecting almost all the listed companies due to the shortage of raw materials that come from external sources.
“This will hurt earnings of the companies in the next quarter,” said a leading broker.
Each share of the Dulamia Cotton, which was listed on the Dhaka Stock Exchange in 1989, closed at Tk 48.10 on Thursday.
Its shares traded between Tk 34 and Tk 66.90 in the last one year.
The company has reported earnings per share of Tk 0.45 in the negative for January-March 2020 as against negative Tk 0.93 for January-March 2019.
Its EPS was negative Tk 1.52 for July 2019- March 2020 as against negative Tk.3.21 for July 2018- March 2019.
The company was trading in the ‘Z’ category as it failed to pay any dividend to its shareholders in the past few years.
The company’s paid-up capital is Tk 75.57 million and authorised capital is Tk 300 million, while the total number of securities is 7.55 million.
The sponsor-directors own 33.16 per cent stake in company, while the institutional investors own 3.40 per cent, and the general public 63.44 per cent as on February 29, 2020, the DSE data showed.
Earlier, four listed companies Tallu Spinning Mills, Usmania Glass Sheet Factory, Monno Ceramic Industries and Monno Stafflers- ‘temporary’ shutdown their factories due to Covid-19 pandemic.
The factory of Usmania Glass remained shut from March 29, Tallu Spinning from April 7 and Monno Ceramic and Monno Stafflers temporary shutdown from April 10.
However, company officials said, the factories will resume production once the pandemic situation would become normal.