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Square Textiles posts 27pc revenue growth

The company to invest Tk 916m to enhance production capacity

Babul Barman | March 04, 2019 00:00:00

Square Textiles has posted a 27 per cent growth in revenue year-on-year in 2017-18 due to increase of production capacity.

At standalone level, the company's revenue stood at Tk 6,367.12 million in the fiscal year 2017-18 compared with Tk 5,020.43 million in the previous fiscal.

The company installed 4,500 tonnes per year production capacity yarns machinery and commenced its commercial production from July 2018, according to its latest annual report.

The annual report noted that this will generate additional turnover around Tk 1.0 billion for the current financial reports of 2018-19 with additional profit, said the company.

The company's operating profit stood at Tk 444.19 million in the FY 2017-18 as against Tk 344.37 million in the previous fiscal, an increase by 28.99 per cent.

The net profit increased by 15.22 per cent to Tk 290.91 million in the FY 2017-18 which was Tk 252.49 million in the previous fiscal.

The board of directors of the company has recently approved an investment plan to further increase production capacity of the factory through building yarn production and fiber dyeing facility.

Square Textiles will increase its production capacity of 3,000 tons per year and estimated project cost will be Tk 916 million.

"Expected date of completion of the new project is March, 2019," the company said in its latest annual report for the fiscal year (FY) 2017-18.

The company expects that an amount of Tk 720 million will be added in the turnover per year and profit contribution 10 per cent of the turnover after completion the new project.

The company disbursed 20 per cent cash and 5.0 per cent stock dividend for the year ended on June 30, 2018.

The company has also reported consolidated earnings per share (EPS) of Tk 2.43, consolidated net asset value (NAV) per share of Tk 39.63 and consolidated net operating cash flow per share (NOCFPS) of Tk 0.29 for the year ended on June 30, 2018 as against Tk 2.19, Tk 39.10 and Tk 1.23 respectively for the same period of the previous year.

The board has also approved Tk 850 million for BMRE, and purchase of land for further expansion.

In six months for July-December, 2018, its consolidated EPS was Tk 1.17 as against Tk 1.0 for July-December, 2017.

The consolidated revenue from operations for FY 2017-2018 was Tk 9,411.87 million which was Tk 7,758.88 million in the previous year, registering a growth of 21.30 per cent.

The consolidated profit from operation was Tk 672.26 million in the FY 2017-18 as against Tk 551.43 million in the previous fiscal.

The consolidated net profit for the year stood at Tk 457.06 million in FY 2017-18 against Tk 411.39 million in the previous fiscal.

The consolidated profit from operation and net profit increased by 21.91 per cent and 11.10 per cent respectively during the year 2017-2018.

Officials of the company said the cost of goods sold has increased during the year under review due to increase in cost of raw materials, fuel/power and factory overheads which were beyond the control of the management.

Each share of the company, which was listed on the Dhaka bourse in 2002, closed at Tk 46.50 on Wednesday last at the Dhaka Stock Exchange (DSE).

The company's paid-up capital is Tk 1.97 billion and authorised capital is Tk 3.0 billion while the total number of securities is 197.25 million.

The sponsor-directors own 61.83 per cent stake in the company, while institutional investors own 19.77 per cent, foreign 5.20 per cent, and general public 13.20 per cent as on January 31, 2019, the DSE data shows.

Square Textiles has over 21 years of experience in yarn spinning. The industry is one of the largest producers of knitting and weaving yarns in Bangladesh.

Square Textiles focus on more sustainable and eco-friendly product i.e. Organic, BCI, Tencel, Re-cycle (cotton and Polyester) etc.

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