Higher sales boost profits of Square Textiles, Matin Spinning
Thanks to more sale orders, two textile firms – Square Textiles Ltd and Matin Spinning Mills Ltd – have registered massive growth in their annual profits for the fiscal year that ended on 30 June 2022 compared to the previous year, as per the earnings posted on the Dhaka Stock Exchange (DSE) website on Sunday.
Square Textiles
The earnings per share (EPS) of Square Textiles jumped by a staggering 191% to Tk9.39 in FY22, from Tk3.41 in the previous fiscal year.
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An official of the company, seeking anonymity, said the company received more orders and exports increased in FY22, compared to FY21 when the business was affected by the pandemic.
The company recommended a 35% cash dividend for FY22.
Also, its board of directors approved a Tk38 crore investment plan for Balancing, Modernising, Rehabilitation and Expansion.
Square Textiles has six units of spinning mills and a twisting mill. It mainly manufactures and markets yarns.
Matin Spinning Mills
The EPS of Matin Spinning increased 71% to Tk10.79 in FY22 from Tk6.31 in the previous fiscal year.
The company said its EPS increased because of an increase in revenue. Also, there was no significant increase in the company's expenditures.
Moreover, the company said it had purchased raw materials at a reasonable price, which helped it to achieve the extra profit margin.
It recommended a 50% cash dividend for FY22.
Matin Spinning Mills manufactures and sells all types of cotton, viscose, polyester, CVC, melange, and vortex yarns.
Two more firms
Queen South Textile Mills Limited and Rahim Textile Mills Limited also published their earnings on the DSE website on Sunday.
Queen South's EPS increased by 31.2% to Tk1.64 in FY22, compared to FY21. The company recommended 6% cash and 6% stock dividends for FY22.
Rahim Textile Mills reported a 30% decline in EPS to Tk1.54. It recommended a 10% cash dividend for FY22.
According to the company's stock exchange filing, EPS decreased because of the rising cost of raw materials, as well as an increase in gas and electricity charges.
