Evince Textiles returned to profit in January-March 2023 while Argon Denims' profit slumped 55 per cent year-on-year in the quarter ended in March due to a decrease in export revenue.
Both Evinces Textiles and Argon Denims are concerns of Evince Group.
The struggling Evince Textiles made a profit of Tk 24.85 million in January-March 2023 after suffering losses of Tk 38.15 million in the same quarter last year.
On the other hand, Argon Denims' net profit dropped to Tk 29.44 million in the January-March quarter due to the latest gas and electricity price hikes and decrease in export revenue.
Evince Textiles
Though the company made a profit in the latest quarter, its sales revenue declined 12 per cent year-on-year to Tk 667 million. Its cost of production also plummeted 12 per cent to Tk 580 million.
The company returned to profit as other income (interest income) added Tk 4.10 million to its earning.
However, the company incurred a consolidated loss of Tk 23.12 million in the nine months through March 2023 as against profit of Tk 67 million in the same period last year.
Company secretary Md Sabbir Hasan Mahmud said higher raw material prices and gas and electricity price hikes impacted the company's earnings.
Besides, the company could not generate expected export revenue due to the unstable world market, which hit the company's profit in the nine months.
However, Mr Mahmud said the company's expansion and modernisation work would continue and the company would be able to earn more in future.
In December 2022, Evince Textiles decided to invest Tk 204 million to buy capital machinery in order to raise its manufacturing capacity.
It produces woven fabrics for renowned international brands and retailers. Its subsidiary Evitex Fashions manufactures and exports readymade garments.
Listed in 2016, Evince Textiles is also in the process of merger with not-listed subsidiary company Evitex Fashions.
The company secretary said the process of merger was at the final stage as the High Court had already given its verdict in favour of the merger.
The merger will help reduce the management cost and corporate tax, and accounting will be easier, he said.
As the company's business deteriorated in the last nine months, Evince Textiles' stock witnessed high volatility.
Its stock price peaked at Tk 10.70 on April 21 last year, and then slumped to Tk 8.80 on May 5. After that the stock rose to Tk 10.50 on August 7.
The company's share price has been languishing at the floor price of Tk 9.40 each since November 9 last year.
The stock falls under category 'B' as the company declared only 2 per cent cash dividend for FY21 and FY22 each.
Argon Denims
Its profit dropped in the third quarter through March but its nine-month profit soared by 10 times to Tk 62.05 million.
Lower costs of production and reduction in finance expenses helped the company make higher profits in the nine months through March, said Company secretary Md Moniruzzaman Bhuiyan.
The company's sales revenue dropped 7.62 per cent year-on-year to Tk 3.15 billion in the nine months through March while costs of sales decreased by 11 per cent to Tk 2.89 billion during the period.
The company's finance expenses dropped 29 per cent year-on-year to Tk 58.11 million in July-March of FY23.
Its stock price hovered between Tk 16.80 and Tk 21.90 in the last one year on the DSE.
The stock has been languishing at the floor price of Tk 18.20 since September 25 last year.
Listed in 2013, the company paid 10 per cent cash dividend for FY21 and FY22 each.
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