Most listed textile firms’ Q3 earnings up

Most of the listed spinning and textile millers witnessed a jump in their earnings in the third quarter of the last fiscal year, thanks to spiraling yarn prices and surging apparel exports.

Of the 58 listed companies, 34 logged higher earnings growth, 19 faced negative earnings growth and five are yet to disclose the earnings from January through March of fiscal 2021-22 compared to the corresponding period a year ago, according to the regulatory filings.

EPS is a company's net profit divided by the number of common shares it has outstanding.

However, the ongoing power crisis and recent fuel price hike might have a negative impact on the sector's earnings in the coming quarter, analysts have said.

The wild swings of US dollar against the taka might also have a significant adverse impact on the sector's exports, according to them.

Tamijuddin Textile EPS shot up 446 per cent in the third quarter of FY22 compared to the same period a year earlier.

Monno Fabrics Limited came second, posting a 400 per cent growth in earnings. Its EPS stood at Tk 0.05, which was Tk 0.01 during the period.

“Higher sales, and lower operational and other expenses upped the EPS,” Monno Fabrics Company Secretary Jishan Ahmed Siddiquee told The Business Post.

After Tamijuddin and Monno, other top textile companies that saw higher EPS growth during the period are Simtex Industries, Envoy Textiles, Toshrifa Textiles, Square Textile, Tosrifa Industries, Safko Spinnings Mills, and Mozaffar Hossain Spinning Mills.

The top five companies that saw negative earnings are Anlimayarn Dyeing, Evince Textiles, Hamid Fabrics, Prime Textile Spinning and Alltex Industries.

A week back, the government raised fuel oil prices by a huge margin, citing a global hike. The prices of diesel and kerosene have been increased by 42.5 percent to Tk 114 per litre. Petrol prices have been fixed at Tk 130 a litre, a 51.16 percent jump. Octane will cost Tk 135, or 51.68 percent higher than the current rate.

Export earnings from the RMG sector in July 2022 grew by 16.61 percent to $3.36 billion from $2.88 billion in the same month of 2021, According to the Export Promotion Bureau.

Among the listed companies in the textile sector, four companies have not published their financial reports. They are C & A Textiles Limited, Familytex (BD) Limited, Mithun Knitting and Dyeing, Regent Textile Mills and Ring Shine Textiles.