Profits in most of the textile companies tumbled in the first-half (January-June) of the year compared to the year-ago period as political turmoil and depreciation of the euro hurt earnings.
Of the 41 listed companies in the textile sector that accounts for 3.50 per cent of the total market capitalisation at the Dhaka Stock Exchange (DSE), nearly one-third disclosed their un-audited half-yearly reports.
Among them, consolidated profits of nine companies declined, six showed marginal profits while 26 are yet to publish half-yearly financial reports as they consider June and September to be year-ending.
Textile companies include spinning, knitting, weaving, dyeing, and zipper manufacturing, as well as readymade garments manufacturing units.
The poor performance of the companies is attributed to slowdown in export growth in the US and the EU markets, which weighed on the export earnings of textile makers," said LankBangla Securities, a stockbroker, in an analysis.
Among the companies, consolidated profits of RN Spinning, Argon Denim, Safko Spinning, Square Textile, Tung Hai Knitting and Dyeing, Apex Spinning, HR Textile, Makson Spinning and Familytex (BD) declined in the January-June period in 2015 compared to the same period last year.
The companies whose profits rose are Shasha Denims, CMC Kamal, Generation Next Fashion, Sonargoan Textile, Zaheen Spinning and Envoy Textile in the first half of the year compared to the same period last year.
According to the information from the DSE and LankaBangla Securities, the consolidated profits of RN Spinning fell to Tk 59.48 million with earning per share (EPS) standing at Tk 0.24 in the January-June period as against Tk 339.5 million and Tk 1.37 respectively one year earlier.
Argon Denim's profits dropped to Tk 138.11 million with reporting EPS of Tk 1.39 in the first half as against Tk 191.76 million and Tk 1.93 in the corresponding period last year.
Safko Spinning Mill's profits came down to Tk 13.58 million with EPS Tk 0.50 in the January-June period in the current calendar year, down from Tk 14.40 million and Tk 0.53 respectively in the same period last year.
Square Textile's profits stood at 401.74 million with EPS Tk 2.47 in the first half of 2015 against Tk 473.30 million and Tk 2.91 in the same period last year.
The profits of Tung Hai Knitting and Dyeing fell to Tk 50.24 million with EPS Tk 0.57 which was Tk 62.58 million and Tk 0.72 respectively in the same period in 2014.
Apex Spinning has reported consolidated profits Tk 23.20 million with EPS of Tk 2.27 in January-June period in 2015 as against Tk 18.80 million and Tk 3.35 in the same period last year.
HR Textile's profit shrunk to Tk 10.98 million with EPS of Tk 0.43 in the first half of the year as against Tk 20.40 million and Tk 0.81 in the same period last year.
The consolidated profits of Makson Spinning stood at Tk 39.38 million in January-June period in 2015 as against Tk 109.25 million and Tk 0.48 respectively in the same period last year.
Familytex (BD) has reported net profit after tax (un-audited) of Tk 224.45 million with EPS of Tk 0.81 in the (January-March) in 2015 as against Tk 321.40 million and Tk 1.16 in the same period last year.
On the other hand, Shasha Denim's profits rose to Tk 295.50 million with EPS of Tk 2.62 in the first half as against Tk 7.90 million and Tk 0.07 in the same period last year.
"Shasha Denim's profits rose sharply as profits of Energies Power Corporation, a subsidiary of the denim maker, rose substantially during the period along with steady growth of Shasha Denim," Mohammed Anamul Hasan, an accounts manager of the company told The Financial Express.
"The Energies Power Corporation witnessed around Tk 50 million profits in the first half, which helped us witness impressive growth in profits," said Mr Hasan.
The profits of CMC Kamal stood at Tk 72.61 million with EPS of 0.75 in the first half in 2015, which was Tk 66.80 million and Tk 0.66 respectively in the same period last year.
Generation Next Fashion's profits rose to Tk 264.03 million with EPS of Tk 0.71 in the first half as against Tk 249.16 million and Tk 0.67 respectively in the corresponding period last year.
The profits of Sonargoan Textile stood at Tk 29.91 million with EPS of Tk 1.13 in January-June period in 2015, which was Tk 12.70 million and Tk 0.48, respectively in the same period last year.
The first half profits of Zaheen Spinning stood at Tk 71.54 million with EPS of 0.96 as against Tk 52.91 million and Tk 0.71 respectively in the corresponding period last year.
Envoy Textile's profits rose to Tk 353.73 million with EPS of Tk 2.44 in the October 14 to March 15 period as against Tk 101.19 million and EPS Tk 0.70 in the same period last year.
Top performing company in the textile sector is Envoy Textile with 249.6 per cent growth in the first half of 2015 over the same period last year, said LankaBangla Securities.
"We saw impressive growth during the period due to higher utilisation of expanded capacity in denim fabric unit-2," said Abdus Salam Murshedy, managing director of Envoy Textile.
"We are also expecting better business in the coming years, as buyers from EU and USA are now expressing interest in sourcing more denim products from Bangladesh, bypassing China, India, Pakistan and Vietnam," said Mr Murshedy.
In the last fiscal year, garment export growth was only 4.0 per cent compared to the last fiscal. "Political turmoil in the first quarter and depreciation of the euro affected the sector's earnings," said the analysis of LankaBangla Securities.
The textile and readymade garment is the largest export-earning, accounting for four-fifths of the country's annual merchandise shipment. The textile is the second-largest sector in terms of number of securities in the country's capital market after insurance.
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Unrest, weak euro eat into textile makers\\\' margins
Babul Barman | Published: August 14, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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