Financial Report Reveals SK's Loss of Tk10.8 Crore in the First Half of Fiscal Year 25, Amidst a Drought in Revenue by 58%
In a surprising turn of events, SK Trims and Industries Ltd, a publicly listed firm in the miscellaneous sector, reported a loss of Tk10.80 crore in the first half of the 2024-25 fiscal year. This marked a significant departure from the profit of Tk7.37 crore the company made in the same period of the previous fiscal year.
The per share loss stood at Tk1.31, a stark contrast to the earnings per share (EPS) of Tk0.87 in the same period last year. The revenue of SK Trims plunged to Tk19.38 crore in the first half of the current fiscal year, a sharp drop from Tk45.96 crore in the same period of the previous fiscal year, indicating a 58% drop in revenue.
The company's factory was shut for about a week in mid-2024 due to all bank accounts being frozen in connection with a corruption case involving a former National Board of Revenue (NBR) official. This incident likely contributed to the significant order cancellations from foreign buyers, leading to lost foreign orders. However, these lost orders are showing signs of gradual improvement.
Production at SK Trims has resumed, and efforts are underway to recover the lost foreign orders. The company faced multiple instances of no dividends declared for the June 2025 period, indicating financial stress or reduced profitability around this time.
The broader Bangladesh economic environment, where SK Trims operates, shows liquidity shortages, rising non-performing loans, slowing credit growth, and a cautious business environment due to political unrest and tightening finance sector reforms in 2024-25. These macroeconomic challenges in Bangladesh’s banking and financial sectors likely impacted industrial firms' access to credit and working capital, which can constrain revenue and exacerbate losses.
In Q2 (October-December) of the 2024-25 fiscal year, SK Trims' revenue nearly halved to Tk11.20 crore from Tk23.71 crore in Q2 FY24. The company posted a quarterly loss of Tk6.64 crore, or Tk0.78 per share, compared to a profit of Tk3.05 crore and EPS of Tk0.36 in the same quarter last year.
SK Trims, which began operations in 2014, produces sewing thread, elastic, poly, cartons, photo cards, back boards, bar codes, and other accessories for the export-oriented garment industry. The company is a 100% export-oriented firm. The company's results for the first half of the 2024-25 fiscal year were approved by the board on Wednesday, and were released on the following day.
The financial struggles of SK Trims and Industries Ltd, a company in the miscellaneous sector, were evident in Q2 of the 2024-25 fiscal year, as their revenue nearly halved and they posted a significant quarterly loss. These macroeconomic challenges in Bangladesh's banking and financial sectors, including liquidity shortages and tightening finance sector reforms, likely impacted the company's access to credit and working capital, contributing to their revenue drop and exacerbating losses. Despite this, efforts are being made to recover the lost foreign orders in the business of producing sewing thread, elastic, and other accessories for the export-oriented garment industry.
