Renata Ltd, experienced a quarterly profit rebound in fiscal year 2023-24, with a 13% YoY revenue growth, totaling Tk 944 crore in the first quarter. However, annual profits saw an 18% decrease, reaching Tk 101 crore in the same period. This decline had been ongoing since fiscal year 2022-23 when profits dropped to Tk 85 crore, later falling to Tk 59 crore. Renata’s recent performance marks a turnaround from the challenges faced the previous year.
To enhance financial stability, the company reduced credit sales to lower bad debt, locked in interest rates by converting short-term loans to long-term debt, and plans to raise up to Tk 850 crore through zero-coupon bonds and preference shares. Renata’s shift to a “cashless” system and price adjustments for 76 of its 671 products in late 2022 are expected to contribute to shareholder value. The profit decline in 2022-23 resulted from a 25% rise in raw material costs due to taka devaluation against the US dollar and increased energy expenses caused by fuel price hikes.
Source for more details:
