Maksons Spinning Mills PLC's losses surged in the first quarter of the current fiscal year due to escalating raw material costs and financial charges. 

The company reported a loss of Tk 40.75 crore, a 61 percent increase year-on-year. 

Shares of Maksons fell by 1.39 percent to Tk 7.1 as of midday trading at the Dhaka Stock Exchange.

The loss per share for July-September of 2024 was Tk 1.71, compared to Tk 1.06 for the same period in 2023. 

The company's financial statements cited increased raw material costs, higher salaries and wages, utility costs, and elevated interest rates and financial charges as major factors behind the decline in earnings per shares.

Sales for the first quarter amounted to Tk 95.77 crore, down 19 percent year-on-year. 

Maksons attributed the decrease in sales revenue to lower sales volume in terms of both quantity and price. 

The net operating cash flow per share (NOCFPS) was Tk 3.51 in the negative for July-September 2024, compared to Tk 0.74 in the negative in the previous year, which the company attributed to increased costs and other expenses.

The net asset value (NAV) per share was Tk 10.62 as of September 30, 2024, down from Tk 12.29 on June 30, 2024. 

The company stated that losses from operations led to a decline in NAV.

Maksons Spinning Mills, incorporated in 2003, and converted into a public limited company in 2005, operates with 100,680 spindles using machinery from countries, including Japan, China, India, Italy, USA, Germany, Switzerland, and Taiwan. 

The company produces quality yarn for export, with an annual production capacity of 21.25 million kgs, typically producing counts of 20/1 to 80/1 in 100 percent cotton yarn, organic yarn, combed yarn, Supima yarn, and high-quality compact yarn.