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Most of the listed spinning and textile millers witnessed a more than expected jump in earnings in the fiscal year 2021-22, thanks to spiraling yarn prices and surging apparel sales growth and exports.
Despite the electricity and gas shortages on the domestic front as well as a steep rise in fuel oil prices in the global market, they closed the year with positive earnings and profits.
Out of the 58 listed textile sector companies, 45 declared dividends so far after reviewing their FY22’s financials.
According to the filings posted on the website of the Dhaka Stock Exchange (DSE), 28 textiles and spinning firms posted higher earnings growth in FY22 on a year-on-year basis, while 17 companies incurred losses in the fiscal.
Out of the 17 loss-incurring firms, eight did not declare any dividends for the fiscal year 2021-22.
According to the DSE filings, four textile-sector companies returned to positive earnings in FY22, which were loss-making ones in the previous fiscal.
On the other hand, five companies suffered losses in FY22 which were on the list of profit makers in FY21.
However, the ongoing power shortage and a steep rise in fuel prices in the global market might have put an ominous impact on the earnings of these textile and spinning companies in the current fiscal year (2022-23), industry insiders said.
Despite the export receipts of textile and spinning companies surging in FY22, massive production costs ate up a big chunk of their profits and the trend would likely continue in the first quarter of FY23 as well, they commented.
Mozaffar Hossain Spinning Mills Limited posted the highest earnings in fiscal 2021-22 with a 269 per cent jump in its earnings per share (EPS) compared to that of the previous year.
The company’s earnings per share stood at Tk 1.92 for FY22 against Tk 0.52 for the previous year.
The earnings per share (EPS) are a company’s net profit divided by the total number of common shares.
The company declared a 6 per cent cash dividend to its shareholders for FY22.
The earnings of Saiham Cotton Mills Limited also jumped significantly in the last fiscal.
Its earnings per share (EPS) surged by 253 percent to Tk 1.27 in FY22 versus Tk 0.36 for the previous fiscal.
The company declared an 11 percent cash dividend for FY22.
Tamijuddin Textile Mills Limited was a leading profit maker in the fiscal year 2021-22.
Its earnings per share (EPS) stood at Tk 6.61 at the end of FY22, which was up 222 per cent compared to the EPS of 2.05 at the end of FY21.
The board of directors of the firm recommended a 30 per cent cash dividend to shareholders for the fiscal year 2021-22.
“A significant rise in yarn sales pushed up our year-on-year earnings in FY22,” said Sahinur Kabir, company secretary of Saiham Cotton Mills Company, one of the top performers in the sector.
Other top textile companies registering staggering earnings growth in FY22 were Tosrifa Industries Limited, Desh Garments, Al-Haj Textile Mills Limited, Monno Fabrics Limited, Matin Spinning Mills Limited, Hwa Well Textiles (BD) Limited, and Safko Spinnings Mills Ltd.
On the other hand, Shasha Denims limited was the worst sufferer as the company posted a 663 per cent loss in earnings in the fiscal year 2021-22.
The company’s earnings per share (EPS) stood at negative Tk 5.75 at the end of June 2022, which was Tk 1.02 at the end of June 2021.
Stylecraft Limited, Regent Textile Mills Limited, Anlimayarn Dyeing Ltd, Tung Hai Knitting & Dyeing, Zahintex Industries Limited were the remaining companies witnessing losses in earnings.
Among the listed textile sector companies, eight companies did not declare any dividends in fiscal 2021-22.
These firms include Zahintex Industries Limited, Tung Hai Knitting & Dyeing, RN Spinning Mills Limited, Regent Textile Mills Limited, Generation Next Fashions Limited, Dulamia Cotton Spinning Mills Limited, Zaheen Spinning Limited, and Anlimayarn Dyeing limited.
