Pen manufacturer GQ Ball Pen Industries Limited's loss in the first quarter of the current fiscal year increased by 883% compared to the same period of the previous financial year.
Due to this huge loss, investors were disappointed and the company's share price fell by more than 6%.
In fiscal year 2019-20, GQ Ball Pen incurred a loss of Tk6.82 crore, which was 346% higher than the previous fiscal year.
The loss was the highest in the last five years.
On Wednesday, the company announced its financials for the July-September 2020 quarter on the main bourse.
In the first quarter of the current fiscal year, GQ Ball Pen lost about Tk4.21 crore while its loss per share stood at Tk4.72.
Its loss in the first quarter of the previous fiscal year was Tk42.85 lakh while loss per share was Tk0.48.
Company officials said due to the ongoing novel coronavirus pandemic, pen sales had drastically declined as educational institutions remained closed since March.
Even though product sales fell, the company's expenditures remained unchanged and thus it was unable to recover from losses, they said.
The company is now thinking about new initiatives, including introducing more new products, to grow its income.
GQ Ball Pen, which was established in 1981, popularised Econo brand pens in the country. It was listed in 1986.
Recently, the company's auditor said, "Due to the pandemic, all educational institutions were closed for most part of this year and will remain shut for the foreseeable future."
"However, the company has other earnings as well as a 14-storey commercial building under construction. 50% of the building is owned by the company, and revenues from rents will be sufficient to give adequate returns to shareholders."
Although the company had seen good business for a long time since its inception, its earnings began to fall after 2012 because of competition.
Now it makes profits as well as faces losses.