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RAK Ceramics’ profit plunged 70 per cent year-on-year to Tk 46.25 million in January-March, owing to the energy price hike and volatile foreign exchange market raising input costs.
The company's net profit was Tk 156 million in January-March quarter a year before, according to its unaudited financial statements published on Tuesday.
Accordingly, the country’s largest and renowned tiles and sanitary ware maker’s earnings per share (EPS) dropped to Tk 0.11 in the first quarter ended in March from Tk 0.37 in the same quarter a year ago.
The company’s sales revenue also saw an 11.5 per cent decrease to Tk 1.77 billion in the quarter.
The cost of sales, which includes all the associated costs to produce products, stood at Tk 1.39 billion in the March quarter this year, which was 78 per cent of total sales, a jump from 72 per cent of total sales in the same period a year before.
Production costs went up due to the gas shortage, electricity and gas price hikes and the stronger dollar while a staggering rise in raw material prices in the global market affected the profit growth.
RAK Ceramics is the market leader in tiles and sanitary in Bangladesh.
Listed in 2010, the stock rose 2.76 per cent to Tk 29.8 on Tuesday.