Maksons Spinning Mills PLC saw its losses surge in the first quarter of the current fiscal year due to escalating raw material costs and finance charges, according to the company's financial statement.

Maksons Spinning reported losses of Tk 40.75 crore for the first three months of fiscal 2024-25, up 61 percent year-on-year.

Besides, the company's share value decreased 1.39 percent to Tk 7.1 at the Dhaka Stock Exchange yesterday.

The loss per share of Maksons Spinning stood at Tk 1.71 in the July-September period of the ongoing fiscal compared to Tk 1.06 during the corresponding months of FY24.

Sales of Maksons Spinning slipped by about 19 percent year-on-year to Tk 95.77 crore in the July-September period

As per the company's financial statement for the first quarter, increased spending on raw materials, salaries and wages, utility bills and elevated interest payments were the main culprits that dragged down its earnings per share.

Sales of Maksons Spinning slipped by about 19 percent year-on-year to Tk 95.77 crore in the July-September period, it said.

The company attributed the decline to lower sales in terms of both quantity and value.

Its net operating cash flow per share was Tk 3.51 in the negative for the first quarter of the year compared to Tk 0.74 in the negative during the same period last fiscal. Maksons Spinning attributed this rise to increased costs.

The company's net asset value (NAV) per share was Tk 10.62 on September 30 this year, down from Tk 12.29 on June 30 last year. It said that operational losses were behind the lower NAV.

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

With an annual production capacity of about 21.25 million kilogrammes, the company makes quality yarn typically of the 20/1 to 80/1 thread counts for export from 100 percent cotton yarn, organic yarn, combed yarn, Supima cotton and high-quality compact yarn.