Home ›› 16 Nov 2021 ›› Stock
Shares of Square Textile hit the upper circuit limit on Thursday after the company reported a strong set of numbers in the first quarter of 2021.
The textile maker reported a more than 945.45 per cent jump in net earnings per share (EPS) to Tk 2.30 in the quarter ended on September, as against the earnings of Tk 0.22 in the year ago quarter, according to a filing of the company with the Dhaka Stock Exchange on Sunday.
“During the period, EPS shot up due to increased production and sales price of yarn,” it said.
Shares of Square Textile surged 10 per cent, its daily circuit limit, to Tk 55 on the DSE.
The company’s consolidated net operating cash flow per share was Tk 5.23 as against Tk 2.55 during the period. Its NAV per share was Tk 40.99 as of September 30, 2021, and Tk 38.69 as of June 30, 2021.
Furthermore, the reduced corporate tax rate to 22.5 per cent from 25 per cent for listed firms in fiscal 2021-22 helped the company cut tax expenses, contributing to the jump of EPS, according to a top executive of the company.
Sales price increased due to the reasons, including rising demand for the product both locally and internationally, he said.
Square Group, one of the largest business conglomerates in Bangladesh, set up its textile unit in 1997. A year later, it stepped on to its second unit. In the same premises, Square established its third unit in 2000.
It invested $20 million in the first unit, $13.50 million in the second unit, and $12 million in the third unit, according to its website.
The first unit has 36,288 spindles with a daily production capacity of 20,000 kg, the second unit 23,184 spindles with a daily production capacity of 12,000 kg and 768 rotors with a daily production capacity of 8,000 kg and the third unit 3,192 open-end heads with a daily production capacity of 20,000 kg.
