Shares of Fortune Shoes up 32% in three days
In the January-March quarter, the company has returned to profit from losses
The share price of Fortune Shoes Limited, a 100% export oriented footwear manufacturer, has increase 32% in the last three consecutive trading sessions.
On Monday, the share price rose 9.79% to Tk28.60, a jump from Tk21.60 on Thursday.
In response to a Dhaka Stock Exchange (DSE) query, the company said there was no undisclosed price sensitive information for the recent and unusual share price hike, and the increase in trading volume of shares.
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Fortune Shoes, listed on local stock exchanges in 2016, has posted a moderate profit growth at a time when its peers in the country's footwear industry are still hurting in the Covid-19 pandemic.
In the third quarter of the outgoing fiscal year, the footwear maker returned to profit from losses in the previous year.
Sources at the company said, due to the pandemic, it suffered losses in the third quarter of fiscal 2019-2020 due to halt in exports and lower sales orders from foreign buyers.
Consequently, it incurred a loss of Tk6.65 crore in the January-March quarter of that fiscal year.
But in the third quarter of the current fiscal year, it managed to return to profit as sales and exports increased.
In this period, the company posted a profit of Tk6.34 crore while its EPS stood at Tk0.41.
In the July-March period of FY21, it reported a profit of Tk16.25 crore with earnings per share (EPS) at Tk1.05.
In the same time frame of the previous year, it had a profit of Tk9.44 crore with EPS of Tk0.61.
Amid the pandemic, the company reported a profit of Tk11.72 crore in fiscal year 2019-2020.
It declared a 10% dividend – 5% in cash and 5% in stock – for its shareholders.
