Singer Bangladesh Ltd, a prominent home appliance manufacturer in the country, revealed a loss of Tk 21 million in the first quarter of the fiscal year 2024, primarily attributed to escalating finance costs.

The company cited a significant 44.7 percent increase in finance costs during the January-March period, stemming from heightened borrowing expenses resulting from increased interest rates.

The average interest rate surged by more than 3.5 percent compared to last year’s period, exacerbating Singer’s financial challenges. This stark contrast reflects a downturn from the company’s profit of Tk 11.2 crore recorded in the corresponding period of the previous year.

Singer struggled to maintain profitability despite recording a 7.3 percent year-on-year increase in electronics sales, totaling Tk 4 billion in January-March. Gross profit saw a marginal uptick to Tk 1.01 billion from Tk 0.99 billion, representing a modest 1.7 percent increase year-on-year.

Singer attributed the rise in the cost of sales to the devaluation of the local currency, the taka, against the US dollar, coupled with increased sales of trade goods. 

Additionally, the company faced the impact of minimum tax provisions, necessitating a provision of Tk 24.1 million.

However, Singer remains optimistic about its future financial performance, anticipating a considerable decrease in the effective tax rate in the current quarter and improvement in subsequent quarters. 

Despite reporting losses per share amounting to Tk 0.21 in the January-March quarter, the company is poised to navigate through its current financial challenges.

Singer’s shares closed at Tk 138.40 on the Dhaka Stock Exchange yesterday, reflecting a 1.21 percent decline from the previous day’s trading session.