Crust and finished leather manufacturer Samata Leather Complex Ltd posted an 8% growth in revenue year-on-year in the first three quarters of the 2020-2021 fiscal year, although the pandemic caused disruptions to its business activities and decreased sales.
Nonetheless, the company incurred a consolidated loss of Tk2.99 lakh in the period as its administrative expenses increased significantly.
According to the financial statements of the company, its revenue stood at Tk5.68 crore in July-March of FY21, up from Tk5.25 crore in the same period a year ago.
Meanwhile, its administrative cost increased by 46% in July-March last year, compared to the same period a year ago.
During the first nine months of FY21, its administrative expenses rose to Tk58.81 lakh from Tk39.22 lakh in the same period of the previous year
In the third quarter alone, its revenue stood at Tk70.82 lakh and net loss amounted to Tk1.87 lakh.
In this period, its administrative expenses almost doubled to Tk13.40 lakh from Tk6.43 lakh in the January-March period of FY20.
During the July-March period of FY20, the company made a profit of Tk4.05 lakh.
On the other hand, its revenue decreased by 29% year-on-year in the January-March period of 2021.
On Sunday, Samata Leather's share price at the DSE decreased by 5.2% to Tk100.3 from Tk105.8 on Thursday.
Earlier, its share price rose abnormally to Tk122.7 on 8 September this year from Tk85.9 on 26 August.
Samata Leather Complex doing business in the leather tanning industry since 1990. It produces quality leather for gloves, shoes, handbags, and garments.
The company also makes products for buyers from China, Taiwan, Japan, America, and Europe by processing rawhide.
According to the company's financial statements, the company incurred a loss in the first and third quarters in the first nine months of FY21. It made a profit in the second quarter of the fiscal.
Samata Leather Complex was listed on the stock exchanges in 1998. In FY20, it made a profit of Tk9.8 lakh but did not pay any dividend.
In FY19, it made a profit of Tk29 lakh and paid 2% cash dividend.
As of August 2021, sponsors and directors of the company held 33.86%, institutional investors held 4.86%, and the general public held 61.28% shares of the company.