Miracle Industries soared after negative earnings disclosure for 3 yrs

Miracle Industries soared 10.74 per cent on the Dhaka Stock Exchange (DSE) on Tuesday, becoming the day's top gainer, despite reporting losses for the last three years through FY23.

The board of directors recommended no dividend for the years as it made pending earnings disclosure, according to a stock exchange filing on Tuesday.

The plastic packaging product manufacturer reported a loss of Tk 88 million for FY23. It suffered losses in the previous three fiscal years as well, leading to a cumulative loss of Tk 413 million between FY20 and FY23.

Miracle Industries was founded in 1995 as a joint venture of state-owned Bangladesh Chemical Industries Corporation (BCIC) and four individual entrepreneurs.

The entrepreneurs -- Asadur Rahman Mirza, Md Wahiduzzaman Chowdhury, Rafiqul Murshed and Pavarton Securities -- sold their entire stake [10 per cent] to Mehmood Equities in July.

After the selloff, they resigned from the board.

Mehmood Equities, the new owner, nominated three directors to the board and pledged to invest funds necessary to resume operation of the company on September 30.

Miracle Industries paid only 1 per cent cash dividend for 2019 after securing a profit of Tk 7.71 million in the year.

Though the business performance is not promising, the stock has made it to the top gainer's list frequently at a time when investors turned away from good-performing peers and other companies.

As per the latest data, the BCIC holds a 20 per cent stake while the general public own 70 per cent of the firm.

The company, which used to manufacture different types of bags for cement, fertiliser, salt, feed, sugar, food grains, and chemicals, suspended its production in July last year due to working capital shortage.

Company secretary Omar Faruk said the factory was ready to restart production on September 30. .

He said the BCIC had once been the main customer of the products but it stopped buying directly from Miracle Industries from 2008 as the contract ended.

"If we get an order, we will start production as per the declaration."

Earlier, bags needed to market BCIC fertiliser were purchased from Miracle Industries. Currently, the purchase takes place through open tenders.

The company was profitable until FY19. It earned the highest, Tk 36.58 million, in FY17.

babulfexpress@gmail.com