Higher costs throw Alhaj Textile into losses
Alhaj Textile Mills has incurred a loss of Tk47 lakh in the October to December quarter of the ongoing 2022-23 fiscal year owing to the economic adversities and an increase in the costs of production.
In the same quarter of the previous fiscal year, the company made a profit of Tk20 lakh.
The company's revenue, however, increased by 36% year-on-year and stood at Tk13.35 crore in the second quarter of FY23.
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Despite the revenue growth, Alhaj Textile turned a loss because of its increased cost of production and administrative expenses.
During the quarter, its cost of goods sold surged by a staggering 68% and stood at Tk13.11 crore, from Tk7.8 crore a year ago.
Alhaj Textile manufactures cotton yarn for both local and foreign markets.
Recently, the Bangladesh Securities and Exchange Commission (BSEC) appointed a special auditor for the company to review its financial statements for the 2018-19 and 2019-20 fiscal years.
According to BSEC sources, the company is yet to resolve an old issue with the Agrani Bank regarding a fixed deposit receipt (FDR), which is also relevant to the interest of investors.
The auditor will review the company's balance sheets, assets, liabilities, and other parts of the financial statements, and related party transactions, and investigate its procurement of raw materials and PPE, and costs of goods sold.
The company was incorporated in 1961. In 1972, the government nationalised it and entrusted its management to Bangladesh Textile Mills Corporation (BTMC).
In 1982, Alhaj Textile was privatised and it was handed over to its previous owners. In 1983, it was listed on the bourses.
The last share price of the company was Tk132.10 at the Dhaka Stock Exchange on Wednesday.
