Standard Ceramics further extends factory closure till May 31
Company sources say it can neither obtain the raw materials necessary for production nor deliver its already-manufactured products due to the ongoing pandemic
Due to a shortage of raw materials and problems with product distribution, Standard Ceramic Industries Ltd has again extended its factory closure till May 31.
The company, which has been listed on the stock market for more than two decades, took the decision this week.
It said the factory will remain closed till May 31 and then go back to production from June 1 – provided the overall situation returns to normal.
Sources said the company cannot obtain the necessary raw materials for production due to the ongoing Covid-19 shutdown. It cannot even deliver the products it has already manufactured at the factory.
The company deemed the situation an emergency and shut the factory till further notice.
Earlier, in line with the government's shutdown, it closed production from March 26 to April 4 in the first phase, from April 5 to April 11 in the second phase and from April 12 to May 16 in the third phase.
From August 14 to October 14 last year, Standard Ceramics closed its factory's main production unit to carry out renovation work.
Due to the factory's partial closure for those two months, the company faced losses in the first two quarters of the current financial year too.
According to the company's financial report for the first half of the current fiscal year, its net loss was Tk2.97 crore – although it made a net profit of Tk0.52 crore during the same period last financial year.
At the same time, Standard Ceramics' earnings per share were negative Tk4.60 while the net asset value per share was Tk11.27 – down from Tk16.37 last year.
Meanwhile, the company recommended a two percent cash dividend for fiscal year 2018-19 for its shareholders.
The company's sponsors and directors jointly own 28.50 percent of its shares, institutional investors own 6.50 percent and general investors hold 65 percent.
The last trading price of each of its shares on the Dhaka Stock Exchange was Tk13.60.
Standard Ceramic Industries, a local tableware and stoneware manufacturer, was incorporated as a public limited company in 1984 and began operations in 1993.
It was listed on both of the country's stock exchanges in 1996.
