Zaheen Spinning showed a 10-time higher loss in the second quarter of FY25, compared to the same quarter of the previous year, as its production remained closed.
Its losses amounted to nearly Tk 123 million in the October-December quarter of FY25.
A massive fire broke out at Zaheen Spinning at Araihazar in Narayangonj on December 16, 2024. The fire broke out at around 9.00pm "due to electrical short circuit" and engulfed the whole factory very quickly, as claimed by the company.
Operations have remained suspended since then as most of the machineries were burned in the fire, it said.
However, Zaheen Spinning was a losing concern since FY20.
In FY23, it returned to profit only temporarily but plunged back into the red in FY24.
The company has given a clarification as to why losses escalated.
"EPS has significantly deviated on account of decrease in sales volume and increase in cost of goods sold due to production [remaining] shut down since the fire incident," says the company in its financial statement.
In the first six months of FY25, losses jumped to Tk 131 million from Tk 22.77 million in the same period a year ago.
After the latest disclosures, the stock fell 2.41 per cent to Tk 8.1 per share on Thursday on the Dhaka Stock Exchange (DSE).
Before the decline in the share price, Zaheen Spinning climbed more than 60 per cent in less than two months to Tk 8.7 per share on February 24.
Its net asset value per share decreased to Tk 2.78 per share in December 2024 from Tk 3.96 per share a year ago as its retained earnings shrank, according to the company.
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