Malek Spinning profit rises by 10% on back of associate firms

Malek Spinning Mills Limited posted a 10 per cent increase in consolidated net profit in the fiscal year 2021-22, thanks to the associate firms that helped it secure year-on-year profit rise.

The company registered Tk 72 crore in consolidated net profit in FY22 versus Tk 65 crore in the previous fiscal.

The publicly traded company’s earnings per share also surged by 10 per cent to Tk 3.72 in fiscal 2021-22, against Tk 3.36 in the previous year.

According to the company’s disclosure posted on the website of the Dhaka Stock Exchange (DSE) on Wednesday, the key reason for the increase in its consolidated net profit and EPS was the soaring sales from subsidiaries that helped it log booming earnings.

Syed Saiful Haque, company secretary of Malek Spinning Mills, told The Business Post, “We could not earn much from spinning mills because of production cut owing to the shortage of industrial gas supplies. The lion portion of our revenue was generated from subsidiaries involved in the garments and fabrics business.”

The board of directors of the company recommended a 10 per cent cash dividend to its shareholders for the fiscal year ended in June 2022. The company, however, has been disbursing 10 per cent cash each year since 2016.

The company is scheduled to hold a virtual annual general meeting (AGM) on December 27 this year. The company reported a consolidated net asset value (NAV) per share of Tk 48.91 and consolidated net operating cash flow per share (NOCFPS) of Tk 0.10 for the year ended in June 2022 against Tk 46.27 and Tk 2 respectively for the same previous year.