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Sonali Paper & Board Mills on Tuesday reported a 959.34 per cent or 10.59 times rise in its profit in the first quarter of the current fiscal year compared to the same period a year ago.
The paper boards and writing papers manufacturers logged a net profit to Tk 12.19 crore from July through September of fiscal 2021-22, which was Tk 1.15 crore in the same period of the last fiscal year.
“The company’s sales and other income increased while operational cost decreased, boosting the net profit,” said its Company Secretary Md Rashedul Hossin told The Business Post.
However, the company’s revenue did not rise at a similar pace as it witnessed in net profit. Its revenue registered only 1.2 times rise during the period.
The revenue stood at Tk 39.73 crore in the quarter, which was Tk 31 crore in the corresponding period a year ago. The company’s earnings per share (EPS) was Tk 6.66, up from Tk 0.63 during the period.
Besides, it reported net asset value (NAV) per share of Tk 290.99 as of September 30, 2021.
The company’s net operating cash flow per share declined to Tk 2.51 from Tk7.26, however.
“The company invested in purchasing a considerable volume of raw materials during the period, leaving an impact on the operating cash flows,” said the company secretary.
Sonali Paper, a subsidiary of business conglomerate Yunus Group, has decided to pay 20 per cent cash and 20 per cent stock dividends to the shareholders for the year ending on June 30 of FY21.
After remaining in the over-the-counter (OTC) market for 11 years, the company was shifted to the DSE mainboard in July last year following its financial improvement.
The company mainly produces white and printing papers, simplex papers and duplex papers at its Narayanganj’s Rupganj plant. On Tuesday, Its share price rose 3.3 per cent to Tk 528.70, which was Tk 197 on July 27 when it was brought to the main trading board.
Listed in 1985, Sonali Paper planned to raise capital by issuing rights shares for business expansion. It proposed to issue one rights share for every two ordinary shares at Tk 10 to raise about Tk 11 crore. The date for the extra general meeting is scheduled for November 11.
The company started its business in 1977.
