Pen makers hit hardest by coronavirus

GQ Ball Pen Industries Ltd—the country’s pioneer manufacturer of ball pens—has witnessed a sharp fall in sales due to the Covid-19 pandemic.

The company has been facing a severe blow from coronavirus as the demand for pens plunged because of the closure of educational institutions and the work-from-home concept, according to sources familiar with the company’s operation.  

The company reported its negative earnings widened further, as its first-quarter (July-September) negative earnings (EPS) stood at Tk 4.72, a steep drop of a staggering 883 percent from Tk 0.48 seen in the same period a year earlier, it said in a filing with the Dhaka Stock Exchange on Wednesday.

The net operating cash flow per share was negative Tk 0.80 from Tk 0.64 during the period.

Its share price fell more than 6 percent to Tk 147 a share after the news. 

“The ball pen makers have been going through tough times ever due to the corona,” said an analyst of the industry asking not to be named.

“The industry witnessed a significant fall in demand as the educational institutions remain closed and many have opted for the work-from-home concept,” he said.

Nobody from the company was immediately available for comments.

GQ Ball Pen Industries Limited—a subsidiary of GQ Group of Companies—started manufacturing ball pens in 1981. In 1986, it got listed on the stock market.

The company grabbed most of the attention after coming up with its own ECONO brand ball pens. Its ECONO DX ball pen soon became favourite among the students for its cheap price and ink quality. The brand became almost a household name.