Standard Ceramics extends factory closure for third time

Due to the shortage of raw materials and the problems in product distribution, Standard Ceramic Industries Ltd has extended its factory closure for a third day.

The company, which has been listed in the stock market for more than two decades, took the decision on April 9.

It said that the factory will remain closed till April 30 and then go back to production from May 2 if the overall situation becomes normal.

Sources at the company said they cannot collect raw materials due to the ongoing countrywide lockdown enforced to stop the coronavirus spread.

The company cannot even deliver the products manufactured at the factory. In such a situation, it is an emergency to close the factory.

Earlier, the company closed the production from March 26 to April 4 in the first phase and again from April 5 to April 11 in the second phase.

Standard Ceramics closed a part of the factory from August 14 to October 14 of last year for carrying out renovation work.

The closed part was the main production unit of the factory. Also, due to the partial closure of the factory for two months, the company had to face losses in both quarters of the current financial year.

According to the financial report of the first half of this year, the company’s net loss was Tk2.97 crore. It had a net profit of Tk0.52 crore during the same period of the previous financial year.

At the same time, the company’s earnings per share (EPS) was Tk4.60 negative.

Its net asset value per share was Tk11.27, which was Tk16.37 in the previous year.

The company recommended a 2 percent cash dividend for fiscal year 2018-19 for its shareholders.

The company’s sponsors and directors jointly own 28.50 percent shares, institutional investors own 6.50 percent, and general investors own 65 percent.

The last trading price of each share of the company at the Dhaka Stock Exchange was Tk13.60.

Standard Ceramic Industries was incorporated as a public limited company in 1984 and went into operation in 1993.

The company produces ceramic stone wares and tablewares for local and foreign markets.

It was listed in the country’s both stock exchanges in 1996.