Due to an increase in exports, Ring Shine Textiles reported a remarkable revenue gain in the second quarter of the current fiscal year. According to firm authorities, it made Taka 67.33 crore in revenue during the October-December quarter, which is 161.27 per cent more than Taka 25.77 crore during the same period last year.
In contrast, the company reported a loss of Taka 35.32 crore during the same time last year, as opposed to Taka 27.72 crore.
The high cost of raw materials, the ongoing weight of accrued losses, and a sharp increase in other financial expenses all contributed to the textile manufacturer’s large loss.
Once a prominent player in the textile industry, Ring Shine Textiles has been grappling with significant financial challenges, including mounting losses and liquidity issues, raising concerns about its future viability in a competitive market.
Despite revenue increases, the company experienced losses for a number of reasons, according to company officials.
The company’s financial performance has been negatively impacted by its continuous carryover of past accumulated losses. The company’s financial burden has been exacerbated by a considerable increase in financial overheads and penalties on overdue dues levied by the Bangladesh Export Processing Zones Authority (Bepza). Additionally, compared to the same time in 2023–2024, the Cost of Goods Sold (COGS) has increased, mostly as a result of increased expenses owing to the acquisition of raw materials. Finally, the company has yet to reach its anticipated and forecasted break-even threshold as of 27th February, which has caused all of its financial indicators to be significantly squeezed.
