Matin Spinning Mills Limited

FE Team | Published: May 25, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Company Profile
Matin Spinning Mills Limited (MATINSPINN) is a manufacturer and marketer of combed and carded yarn, made from raw cotton. The company was incorporated in 2002. It started its commercial operation four years later in 2006. Later in 2010, MATINSPINN was converted into a public limited company. The company was listed both in DSE and CSE in 2014.
MATINSPINN operates as a backward linkage of garments manufacturing units of DBL Group, which is a business group consisting of 18 different companies.
Key Revenue Drivers & Company Insight
The company produces manufactures and markets cotton yarn. Its product is used in the fabric and apparel manufacturing counterparts within DBL Group. Sales of MATINSPINN are considered 'Deemed Export', as its product is ultimately used in export oriented garments industry.
MATINSPINN procures its raw cotton from countries in Asia, Africa and North America. Whereas, its final products are exported all over the world, with significant concentration in Europe.
Business growth was slow in recent years, due to shift in customers' demand to lower price products. Besides, high capacity utilization constrained volume growth opportunity. Together, these caused business to shrink by 1% in last two years. However, the company has raised BDT 1.3 bn in its IPO to implement a Mélange yarn producing unit, which is expect to be completed by 12 months of receiving the IPO proceeds. The unit is expected to produce 10 ton Mélange yarn/day increasing the company's business growth. In addition, due to the premium nature of the product compared to cotton yarn, profit margin may boost, as well.
Financial Performance
Gross and Operating Profit Margins remained relatively stable at around 19% and 18%, respectively, in last two years. However, Net Profit Margin improved to 11% in 2013, compared to 8% in 2012, due to reduced interest burden. Consequently, both ROA and ROE improved to 6% and 12%, respectively. During Q3, 2014, interest income from IPO application money caused a 44% growth in Net Profit, while Revenue remained in downbeat trajectory.
Recently, the company has reported consolidated net profit after tax (excluding non-controlling interests) of Tk. 226.42 million with consolidated EPS of Tk. 3.41 for the period of nine months (Jul'13 to Mar'14) as against Tk. 156.72 million and Tk. 2.36 respectively for the same period of the previous year.