FE Report
The earnings of many listed companies of the textile sector declined in the last fiscal year that ended on June 30, 2017.
The companies' dividends recommended for the last financial year have also declined.
Of nine companies of textile sector which recommended dividend last week, eight witnessed fall in earnings for the same time.
Abdus Salam Murshedy, Managing Director of Envoy Group, said the companies' earnings indicate the sluggish growth of textile sector.
"The sales rates of products have declined amid competitive world market. Secondly, the utility bills of the factories have also increased significantly, leaving impact on earnings," Murshedy said.
He also said the production capacities of many factories have declined amid their failure to fulfill requirements of Accord and Alliance. In the last fiscal year, the country's export earnings from the apparel industry observed the lowest growth of 0.20 per cent to $28.15 billion in the last one and a half decades.
The companies which recommended dividends last week are Envoy Textiles, Modern Dyeing & Screen Printing, Stylecraft, Shasha Denims, Shepherd Industries, Metro Spinning, Maksons Spinning Mills, Simtex Industries and Far East Knitting & Dyeing Industries.
Besides, The Peninsula Chittagong, ACME Laboratories, JMI Syringes & Medical Devices and IT Consultants have also recommended dividend.
According to Dhaka Stock Exchange (DSE), Modern Dyeing & Screen Printing reported EPS (earnings per share) of Tk 1.35, NAV (net asset value) per share of Tk 4.74 for the year ended on June 30, 2017 as against Tk 1.49 and Tk 7.84 respectively for same period of the previous year. The company recommended 8.0 per cent cash dividend for the year ended on June 30, 2017 against 10 per cent cash dividend issued in previous year.
The Envoy Textiles recommended 7.0 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2017 against 12 per cent cash and 3.0 per cent stock dividend of previous year. The company also reported EPS of Tk 2.05 and NAV per share of Tk. 38.51 for the year ended on June 30, 2017 which was Tk. 2.26 (restated) and Tk 37.62 (restated) respectively for the nine-month period ended on June 30, 2016.
The Stylecraft recommended 10 per cent cash and 80 per cent stock dividend against 75 cash dividend disbursed in previous year. The company reported EPS of Tk 52.47 and NAV per share of Tk 508.04 for the year ended on June 30, 2017.
The Shasha Denims reported consolidated EPS of Tk 5.23 and consolidated NAV per share of Tk 47.34 for the year ended on June 30, 2017 as against Tk 4.99 and Tk 44.86 respectively for the same period of the previous year. For the year ended on June 30, 2017 the company has recommended final 12.50 per cent cash and 6.0 per cent stock dividend for the year ended on June 30, 2017 (total 31 per cent dividend i.e. 25 per cent cash dividend and 6.0 per cent stock dividend including 12.50 per cent interim cash dividend which was already paid).
The Shepherd Industries recommended 10 per cent stock dividend for the year ended on June 30, 2017 against no dividend of previous year. The company reported EPS of Tk 1.14 and NAV per share of Tk. 18.34 for the year ended on June 30, 2017 as against Tk 1.76 and Tk 18.70 respectively for the same period of the previous year.
The Metro Spinning recommended 2.0 per cent cash dividend for the year ended on June 30, 2017. The company recommended no dividend in the previous year. The company also reported EPS of Tk (0.64) and NAV per share of Tk 15.88 for the year ended on June 30, 2017 as against Tk 0.18 and Tk 15.93 respectively for the same period of the previous year.
The Maksons Spinning Mills recommended 5.0 per cent cash dividend for the year ended on June 30, 2017. The company reported EPS of Tk 0.33 and NAV per share of Tk 19.55 for the year ended on June 30, 2017 as against Tk 0.44 and Tk 19.21 respectively for the same period of the previous year.
The Simtex Industries reported EPS of Tk 2.52 and NAV per share of Tk 23.73 for the year ended on June 30, 2017 as against Tk 2.15 and Tk 23.29 respectively for the same period of the previous year. The company recommended 2.0 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2017.
The Far East Knitting & Dyeing Industries reported EPS of Tk 2.16 and NAV per share of Tk 21.14 for the year ended on June 30, 2017 as against Tk 1.82 and Tk 19.43 respectively for the same period of the previous year. The company recommended 10 per cent stock dividend for the year ended on June 30, 2017.
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