Monospool, Paper Processing profits multiply in FY22

Two publicly traded paper and printing companies – Paper Processing and Packaging Limited, and Bangladesh Monospool Paper Manufacturing Co Limited – performed very well in the fiscal year 2021-22, thanks to hefty work orders from the government for textbooks and from banks for banking papers.

The board of directors of Bangladesh Monospool Paper recommended a 10 per cent cash and a 10 per cent stock dividend for its shareholders for the FY22 Thursday.

Meanwhile, the board of Paper Processing proposed an 8 per cent cash dividend and a 7 per cent stock dividend for its shareholders for the same fiscal year.

Bangladesh Monospool Paper registered a landmark rise in earnings per share (EPS) of 343 per cent in FY22.

At the end of the year, the company’s EPS stood at Tk 5.45 against Tk 1.23 in the previous fiscal year.

In the same way, Paper Processing’s earnings per share (EPS) surged by 245 per cent on a year-on-year basis.

The company’s EPS stood at Tk 4.62 in FY22 against Tk 1.34 in the previous year.

Mustafizur Rahman, who is serving both companies as company secretary, told The Business Post that at the end of the last fiscal year, they had no losses because their businesses had expanded significantly that year.

Paper Processing’s profit soared manifold mainly due to the increased work orders from the government for printing the primary school textbooks availed through tender bidding.

On the other hand, Monospool Paper’s revenue multiplied owing to the soaring work orders from banks for supplying deposit slips, cheque books, and other banking papers.

At the end of FY22, Monospool Paper’s net profit stood at Tk 5.11 crore against Tk 1.15 crore in the previous year.

On the other hand, Paper Processing posted a net profit of Tk 4.82 crore in the same fiscal year, compared to Tk 1.40 crore in the previous year.

Paper Processing and Packaging Ltd is owned by Magura Group, which holds an 8.2 per cent stake on the board of the company. Besides, the group has a nominated director on the board of Bangladesh Monospool Paper Manufacturing Co Limited.

Magura Group Chairman Mustafa Kamal Mohiuddin, who is the key owner of both companies, sold 1,00,980 shares out of his holdings from Paper Processing and Packaging and 18,684 shares from Bangladesh Monospool Paper in June this year for the repayment of loans taken out from several banks.

Bangladesh Monospool Paper Manufacturing currently has a long-term loan of Tk 42.91 crore and a short-term credit of Tk 30.76 crore, according to data available on the Dhaka Stock Exchange (DSE) website.

Meanwhile, Paper Processing and Packaging has a long–term loan of Tk 7.78 crore and a short-term credit of Tk 19.64 crore. Bangladesh Monospool Paper, which went public in 1989, paid an 8 per cent bonus and a 9 per cent cash dividend to its shareholders for the fiscal year 2019-20. For FY21, it paid a 10 per cent cash dividend.

On the other hand, Paper Processing and Packaging, which went public in 1990, paid an 11 per cent cash dividend and an 11 per cent bonus dividend for FY20. It paid a 10 per cent cash dividend for FY21.