Sonali Paper sees 235% profit hike in pandemic

Sonali Paper & Board Mills has registered a 235 per cent hike in its profit in the financial year 2020-21, defying the adversities inflicted by the Covid-19 pandemic.

The publicly traded company posted a net profit after tax of Tk 8.95 crore for FY21, which was Tk 2.67 crore in the previous year.

However, the company’s revenue did not increase at similar pace as it registered only 0.43 per cent rise in revenue for the year. The revenue, which was Tk 140.86 crore in FY 20, stood at Tk 141.47 crore in FY21.

Talking to The Business Post, Md Rashedul Hossin, company secretary of Sonali Paper, said attributed the profit hike to a handsome gain from the capital market.

Meanwhile, the board of directors of Sonali Paper has decided to pay a 40 per cent dividend - 20 per cent cash and 20 per cent stock - to the shareholders for the year ending on June 30.

The company disbursed a 15 per cent dividend - five per cent cash and 10 per cent stock – for the shareholders for FY20.

The company’s earnings per share (EPS) stood at Tk 4.89 in FY21, against Tk 1.46 of the previous fiscal year.

Besides, it reported net asset value (NAV) per share of Tk 284.33 for the year.

The recommended dividend is expected to get final approval at the company’s annual general meeting (AGM) slated for November 11. The record date was set on October 7.

After carrying out share trading at the over-the-counter (OTC) market for 11 years, the company was shifted to the DSE main board in July last year.

Sonali Paper & Board Mills mainly produces white and printing papers, simplex papers and duplex papers at its factory in Narayanganj’s Rupganj.

The company started its business in 1977 and got listed on the stock exchanges in 1985.

Its share price, which was Tk 197 on July 27, stood at Tk 474 at the Dhaka bourse on September 15. The price increased by 140 per cent during the period.