Monno Agro's profit jumps 82pc on higher sales

Monno Agro & General Machinery, a subsidiary of Monno Group of Industries, witnessed a record profit in the fiscal year ending June 2023, thanks to a surge in net revenue and the effective management of operational costs.
For FY23, the agricultural machinery and spare parts producer reported a profit of Tk 7.92 million, marking an impressive 82 percent increase compared to the previous fiscal year's profit of Tk 4.34 million.
Consequently, the company's earnings per share (EPS) for FY23 soared to Tk 2.90, up from Tk 1.59 in the year before, according to a stock exchange filing on Wednesday.
Following the earnings growth news, the stock jumped more than 3 per cent to close at Tk 861.70 on the Dhaka Stock Exchange on Wednesday.
Company Secretary Benoy Paul said that higher revenue played a pivotal role in the remarkable profit.
Additionally, effective cost control measures significantly contributed to the overall growth, he said, adding that the company is trying to minimise costs under the prevailing circumstances while focusing on boosting sales.
Although Mr Paul did not disclose the exact revenue figure for FY23, he said the company's revenue surpassed Tk 120 million in FY23, while the previous year's revenue was Tk 115.95 million.
Based on the profit growth, the board of directors of the company declared 3 per cent cash and 32 per cent stock dividend for FY23.
The company said in its earnings notes that the bonus shares will be entitled to modernisation, utilising such retained amounts as capital of the company.
The bonus share has been declared out of accumulated profit, not from capital reserve or revaluation reserve or any unrealised gain, added the company.
Monno Agro has also reported net asset value (NAV) per share of Tk 174.39 for FY23, up from Tk 173.97 due to increased net profit.
Its net operating cash flow per share (NOCFPS) also improved to Tk 3.11 in the negative from Tk 3.67 in the negative as cash receipts from customers have increased and payments to employees and others have declined.
Incorporated in 1978, Monno Agro & General Machinery, formerly Monno Jute Stafflers, is also producing various types of machinery and spare parts for different industries.
Due to the current demand for agricultural machinery in Bangladesh and other countries, it is now manufacturing and fabricating agricultural machinery of their own with their previous experience.
Recently, the company launched Maize Sheller, Seeder Machine, Rice & Wheat Reaper, Power Thresher Machine and agro-related spares.
Listed in 1982, the company's authorised capital is Tk 1.0 billion and paid-up capital is Tk 27.32 million while the total number of securities is 2.73 million.
Its sponsor-directors own 35.66 per cent stake in the company while institutional investors own 6.24 per cent, foreign investors 0.05 per cent and the general public 58.05 per cent as on September 30 this year, the DSE data show.
Monno Group's two more subsidiaries, Monno Ceramic Industries and Monno Fabrics, are also listed on the stock market.
Monno Ceramic's stock has remained stuck at floor price of Tk 97.90 for more than two months while Monno Fabrics' stock has been languishing at the floor price of Tk 24.10 since September last year.

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