Matin Spinning Mills, one of the largest textile companies in Bangladesh, secured a 7.15 per cent year-on-year growth in profit to Tk 102 million in January-March this year, driven by higher sales.
Earnings per share (EPS) stood at Tk 1.05 for the quarter, increased from Tk 0.98 in the same quarter of the previous year, according to a stock exchange filing on Sunday.
The Spinning Mills registered a 16 per cent sales growth year-on-year to Tk 2.04 billion in the quarter through March this year, the highest Q3 sales revenue in its history.
The company also saw costs of sales, comprising mainly expenses on raw materials, fall by three percentage points year-on-year to 83 per cent of its total revenue in the third quarter to March. The cost cuts boosted profits.
However, its operating expenses rose due to higher wages. Finance costs also grew because of high interest rates on bank borrowing, impacting the bottom-line growth.
Martin Spinning's short-term and long-term borrowings stood at Tk 5 billion as of March this year, down from Tk 5.47 billion in June 2024.
The Bangladesh Bank has limited the money supply in order to reduce inflationary pressure, making financing more expensive for businesses.
Accordingly, the finance cost of Matin Spinning soared 50 per cent year-on-year to Tk 102 million in the third quarter through March this year.
However, the company reported a remarkable growth in profits in the nine months through March this year, compared to the same period a year ago, indicating resilience in the face of challenges.
The nine-month revenue grew 17 per cent year-on-year to Tk 6.50 billion through March this year while profit jumped 135 per cent year-on-year to Tk 366 million during the period.
Matin Spinning Mills attributed the nine-month revenue growth mainly to a rise in average selling prices and sales volume.
Higher export earnings positively impacted profits of Matin Spinning.
Matin Spinning Mills, a concern of DBL Group, is an export-oriented company. It manufactures a wide range of yarns and provides backward linkage to garment units under the DBL Group.
babulfexpress@gmail.com
© 2025 - All Rights with The Financial Express
