Business Report :
Struggling Ring Shine Textiles has reported a loss of Tk 396 million for July-September quarter this year, despite a rise in revenue.
The company also suffered a loss of Tk 430 million in the same quarter last year, according to a filing with the stock exchange on Thursday.
As a result, the company’s earnings per share (EPS) were negative Tk 0.79 for the quarter this year, as against negative Tk 0.86 in the corresponding period of 2023.
The company explained that the EPS has improved due to 137 per cent growth in exports during the July-September period compared to the same quarter last year.
The company’s revenue also grew 137 per cent year on year to Tk 645 million for July-September quarter this year. However, the company’s production costs surged by 55 per cent to Tk 761 million, resulting in higher production expenses than sales during the period.
The higher production costs were primarily attributed to challenges in securing essential raw materials, stemming from difficulties in opening letters of credit (LCs).
The company has been incurring losses for more than four years. Over the past four financial years — FY21 to FY24 — the company accumulated a total loss of Tk 4.45 billion.
