Written by The Banking Post
SK Trims and Industries Ltd, a listed company in the miscellaneous sector, has slipped into the red in the first half of FY25, posting a Tk10.80 crore loss after revenue plunged 58% year-on-year.
The 100% export-oriented accessories maker reported revenue of Tk19.38 crore for July–December 2024, down from Tk45.96 crore in the same period a year earlier. The company posted a loss per share of Tk1.31, compared to earnings per share (EPS) of Tk0.87 in H1 FY24, when it booked Tk7.37 crore in profit. Net operating cash flow per share fell to a negative Tk0.73 from a positive Tk0.98.
The downturn followed a one-week production halt in mid-2024, when all company bank accounts were frozen in connection with a corruption case involving former National Board of Revenue (NBR) official Motiur Rahman. The disruption triggered order cancellations from foreign buyers, severely impacting sales.
In the second quarter (October–December), revenue nearly halved to Tk11.20 crore from Tk23.71 crore in the same quarter last year. The company posted a quarterly loss of Tk6.64 crore, or Tk0.78 per share, versus a profit of Tk3.05 crore and EPS of Tk0.36 a year ago.
Despite the setback, company officials say production has resumed and overseas orders are gradually recovering.
SK Trims, which raised Tk30 crore through an IPO in 2021 under the fixed price method, manufactures sewing thread, elastic, cartons, photo cards, back boards, barcodes, and other garment accessories.
The company earned Tk4.55 crore in profit in FY24, paying a 1.75% cash dividend, down from Tk7.97 crore in FY23.
