Maksons Spinning Mills loss more than double in Q2 of FY25

Maksons Spinning Mills saw its losses more than double in the second quarter through December last year of FY25, owing to a significant year-on-year reduction in revenue.

The loss per share jumped to Tk 1.77 in the quarter from Tk 0.86 in the corresponding period of the previous year, according to a stock exchange filing on Thursday.

The company in its earnings disclosure said that while its revenue shrank, its cost went up eating into its income. Expenses on raw materials, salary and wages and utilities increased in the quarter, compared to the same period the year before. At the same time, interest expense rose with the surge in interest rates.

However, Maksons Spinning is yet to release its full financial statement.

In the six months through December last year, the company's loss climbed to Tk 831 million, nearly double the previous year's loss of Tk 457 million.

After the earnings disclosure, the stock of Maksons Spinning Mills closed at Tk 6.90 per share on the Dhaka Stock Exchange on Thursday, having lost 1.43 per cent over the previous day.

The consolidated net operating cash flow per share, a measure of a company's ability to generate cash from its operations, fell to Tk 4.50 in the negative in July-December last year from Tk 2.82 in the negative in the same period a year ago.

According to the company, the cash flow deteriorated due to a year-on-year increase in expenses.

The net asset value, which refers to the excess of total assets over total liabilities, came down to Tk 8.81 per share in 2024 from Tk 12.29 per share a year ago. Operating losses resulted in a decline in NAV.

Once a profitable company, Maksons Spinning Mills started showing losses in FY23. It has not paid any dividend for FY23 and FY24.

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