An official of Monno Group says there is no certainty about when the situation will change
Three companies of Monno Group, listed with the stock exchanges, have faced a massive reduction in business in the third quarter of the 2019-20 fiscal year due to the Covid-19 pandemic.
The three companies are Monno Ceramics – which is the country's leading ceramics manufacturer – Monno Jute Stafllers and Monno Fabrics Limited.
An official of Monno Group told The Business Standard, on condition of anonymity, "Right now the company is facing a big economic loss. There is no guarantee when the situation will change."
The company exports ceramics to several countries.
In the third quarter of the current financial year, the net profit of the company dropped by 56 percent. At this time, earnings per share of the company stood at Tk0.08.
The official said, "Most of the export orders of ceramics are cancelled in the third quarter. Some revenues were earned from the local market. That's why the company made some profit during the time."
"The production of the company was stopped during the nationwide general holidays. Currently, there is almost no business. That is why it will see big losses soon," he added.
The closing price of the company's share was Tk126.80 on Thursday at Dhaka Stock Exchange (DSE).
The highest share price of the company's share was Tk242.90 in September last year.
Currently, the company has been relegated from the main board to the over-the-counter board of the Dhaka Stock Exchange (DSE) – because of underperformance or nonperformance in business due to a gas and electricity shortage.
However, in the last few years, the company had come back with good business performance. Now it is trying to get back to the main trading board of the DSE.
The company is facing a tough time amid the Covid-19 pandemic.
The net profit of the company declined 90 percent in the third quarter of the current financial year. At that period earnings per share of the company was Tk0.02.
According to the official, "The company had some default loans. The loans were regularised later. That is why, in the third quarter, the financial cost of the company increased. Additionally, Covid-19 also affected business."
Monno Jute Stafllers
Monno Jute Stafllers primarily sells industrial machinery. It has been facing economic losses after the first three months of the current fiscal year.
In the third quarter of the current financial year, the net profit of the company dropped by 20 percent. At that time earnings per share of the company stood at Tk3.76.
The closing price of the company's share was Tk794.80 on Thursday on the Dhaka Stock Exchange (DSE).
The highest share price of the company was Tk2,032 in September last year.