Envoy Textiles' profit falls for higher cost of LC settlement

Envoy Textiles saw a 17 per cent decline in profit in the nine months through March of FY23 to Tk 88.90 million, compared to the previous fiscal year, due to unrealised forex loss and a fall in revenue.
Its profit fell 20 per cent year-on-year in the third quarter through March to Tk 121.92 million.
Company officials said they had to address an unreaslised forex loss of Tk 40 million in Q3, FY23 and that ate up profit of the quarter.
"The unreaslised loss may rise or decline based on the currency exchange rate at the time of settlement," said M Saiful Islam Chowdhury, company secretary of the Envoy Textiles.
He said the company had borne the loss as per a regulatory provision.
Apart from the unrealised forex loss, the company's revenue declined 9.11 per cent to Tk 8.08 billion in July-March, compared to the same period a year ago.
"Responses from the buyers were not as expected during the period and that's why the company's revenue declined marginally," said Mr Chowdhury.
On the other hand, operating expenses rose 2 per cent in the nine months to March, compared to the same period of FY22.

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