5 poorly performing firms asked to explain their operational status

The Dhaka Stock Exchange (DSE) has asked five poorly performing companies to inform the bourse as to whether their factories are in operation or not.

The companies are: Mozaffar Hossain Spinning Mills, Khan Brothers PP Woven Bag Industries, Indo-Bangla Pharmaceuticals, Nurani Dyeing and Sweater, and Western Marine Shipyard.

On Monday, the exchange issued letters to the firms as it suspects that some of them might have already stopped operations due to a lack of orders from buyers.

Sources at the country's premier bourse said the companies were badly affected by the Covid-19 pandemic and they have not been able to rebound yet.

The stock exchange will share the report with Bangladesh Securities and Exchange Commission (BSEC) after receiving the latest status of the poorly performing companies, the sources added.

Khan Brothers PP Woven Bag Industries was listed on the stock exchanges in 2014. The export-oriented company produces mainly polypropylene woven bags.

The company has recommended a 2% cash dividend for its shareholders for the last fiscal year ending on 30 June, 2020.

From July to December 2020, the revenue of the company was Tk10.11 crore and the profit was Tk0.84 crore.

Tapan Kumar Sarker, company secretary of Khan Brothers PP Woven Bag Industries, said the company is not getting orders from foreign buyers during the pandemic. As a result, the company's operations are almost closed.

He said the company produces export-oriented products upon receiving orders from buyers.

The operational cost has increased amid the pandemic due to fewer orders from buyers, he added.

Mozaffar Hossain Spinning Mills, which was listed on the stock exchanges in 2014, recommended a 1% cash dividend for its shareholders for the immediate past fiscal year that ended on 30 June, 2020.

From July to December 2020, the revenue of the company was Tk35.42 crore and the profit was Tk3.90 crore.

Haris Alam, company secretary of Mozaffar Hossain Spinning Mills, said the company is in operation now but the woven unit business is not going well.

"We are trying to overcome the pandemic's effects," he added.

Indo-Bangla Pharmaceuticals, which was listed on the stock exchanges in 2018, recommended a 4.5% cash and a 2% stock dividend for its shareholders for the year ending on 30 June, 2020.

From July to December 2020, the revenue of the company was Tk41.93 crore and the profit was Tk7.53 crore.

Md Faruque Hossain, chief financial officer of the company, said the company is in non-stop production.

The company made a positive business during the pandemic, he added.

On the other hand, Nurani Dyeing and Sweater, which raised capital from the stock market in 2017, recommended a 10% stock dividend for its shareholders for the last financial year ending on 30 June, 2020.

From July to December 2020, the profit loss of the company was Tk8.09 crore and the earnings per share were Tk0.66 crore.

Additionally, Western Marine Shipyard was listed on the stock exchanges in 2014.

The company has recommended a 0.5% cash and a 2.5% stock dividend for its shareholders for the last fiscal year.

From July to December 2020, the revenue of the company was Tk144.96 crore and its profit was Tk21.75 crore.