Dacca Dyeing declares dividend after 4 years
It recommends 1% cash dividend for 2019-20 fiscal year
After a gap of four years, the Dacca Dyeing and Manufacturing Company has recommended a 1% cash dividend for its shareholders for the 2019-20 fiscal year.
It also returned to profit that year after incurring losses for four years.
According to the Dhaka Stock Exchange (DSE), the company last made profits in the 2014-15 fiscal year. It declared and paid a 10% stock dividend for that year.
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On Monday, Dacca Dyeing said it would not pay any dividend for FY18 and FY19.
Although it declared a dividend for FY20, its share price decreased by 5.57% to Tk16.4 each on the DSE from Tk17.4 on Monday.
According to the DSE, the company's share price rose by 129% in the last three months to Tk17.4 each from Tk7.6 on 22 March.
According to the company's disclosure on DSE, its earnings per share stood at Tk0.13 in FY20, which was a loss per share of Tk4.10 in the previous year.
Besides, the net asset value per share stood at Tk8.36, which was Tk8.21 a year ago.
The annual general meeting of the company will be held online on 30 July.
In October last year, the company won a Supreme Court order to have its disconnected gas lines restored.
Listed in 2009, it had not paid any dividends since 2016, the year when it filed a writ petition seeking restoration of gas lines. It had not published its financial updates since 2018.
The DSE put it in the Z category.
According to the DSE website, Dacca Dyeing, a Tk87 crore paid-up capital company, made Tk8.6 crore in net profit in 2015.
But it began losing money following the gas line disconnection. Annual losses in 2016 and 2017 fiscal years greatly surpassed the 2015 profit.
In 2016, the company posted losses of nearly Tk29 crore, which increased to more than Tk34 crore the following year.
Dacca Dyeing was incorporated in 1963 as a public limited company.
It was nationalised in 1972 and returned to previous shareholders in 1977.
Saifuddin Quader Chowdhury, a Chattogram-based businessman, is the chairman of the company and Giasuddin Quader Chowdhury is the managing director.
