Ring Shine Textiles’ losses widen

Ring Shine Textiles Ltd incurred a loss of Tk 74 crore in the July-March period of the current financial year as its utility and net interest costs surged.  

This means the loss of the listed textile maker widened by 58 per cent compared to the same period a year ago.

Thus, its earnings per share stood at Tk 1.49 in negative during the nine-month period, which was Tk 0.94 in negative in July-March of 2021-22.

The EPS declined because of the increase in net losses, highly impacted by the spike in utility overhead and financial expenses, Ring Shine said in its financial report.

Shares of the textile company traded at Tk 9.80 on the DSE yesterday, unchanged from a day earlier.

Ring Shine Textiles raised Tk 150 crore in 2019. But its performance has deteriorated since then.

In August 2020, the management decided to close the factory for a month due to the coronavirus pandemic-induced shortage of imported raw materials. However, the company was unable to return to operation.

This prompted the Bangladesh Securities and Exchange Commission to restructure the board of Ring Shine in January 2021 as the regulator looks to reverse the course of the company, protect the interests of the investors, and restore confidence in the market.

Meanwhile, Wise Star Textile Mills Ltd is going to buy the shares of the directors of Ring Shine Textiles, according to a previous disclosure.

The board of directors of Ring Shine has decided to hold an extraordinary general meeting on 20 June to approve the takeover.