Monno Ceramic posts impressive profit despite revenue decline
At the end of September, its net asset value per share stood at Tk81.04
Despite a decline in revenue, Monno Ceramic Industries, a leading tableware ceramic manufacturer and exporter in the country, reported impressive profit growth in the first quarter of the current fiscal year.
In a disclosure, the company reported that its profit increased due to reduced operational expenses and adjustments to deferred taxes.
In the July-September quarter, the net profit after tax stood at Tk2.81 crore, which was only Tk16 lakh in the same period a year ago.
However, revenue dropped by 22% year-on-year to Tk18.44 crore. Its earnings per share stood at Tk0.74, up from Tk0.04 a year ago.
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At the end of September, its net asset value per share stood at Tk81.04.
Monno Ceramic claims to be the oldest porcelain and bone China tableware manufacturer and exporter, with clients including some of the largest retailers in the US, Europe, and Australia, as well as domestic buyers.
Its production capacity is two million pieces per month, as well as 75,000 porcelain and 15,000 bone China pieces per day.
The company was listed on the Dhaka Stock Exchange in 1983.
Its net operating cash flow per share has decreased due to the reduction in cash collection from customers and others during the period.
Besides, its net asset value per share has increased as capital work-in-progress has increased during the period.
According to the disclosure, its deferred tax income stood at Tk1.07 crore. In the previous year, the company had to pay Tk4.85 crore to the tax authority. Moreover, the company will be able to minimise its administrative expenses from Tk1 crore to Tk44 lakh compared to the same period of the previous year.
Recently, Monno Ceramic's share price has risen 16% to Tk116 in the past few trading days. But on Sunday, the share price dropped by 4.91% to Tk110.40 on the Dhaka Stock Exchange.
As of 30 November, sponsors and directors jointly held 42.47% of shares, institutions 12.97%, foreign investors 0.14%, and general investors 44.42% of the company.
