Home ›› 29 Dec 2022 ›› Stock
Queen South Textile Mills Ltd, an export-oriented backward linkage products manufacturer, has decided to start production using new auto dispensing and modernised salt recovery systems in April next year.
Providing more details, Queen South Textile Mills Company Secretary Massum Rana told The Business Post, “After starting production with the new tech, our cost of using dyes and chemicals will be reduced by 20 per cent.
“We currently spent around $3 million to $3.5 million for this purpose. Besides, this technology will make the reuse of water more affordable. Currently, the company is spending around $1 lakh annually on water consumption. But the auto dispensing and modernised salt recovery systems can reduce the cost of water by 30 per cent to 40 per cent.”
He further said, “The implementation of this technology is already underway. Production using the new tech will begin in April next year. As our cost of dyes, chemicals, and water consumption decreases, profit will also go up.
The company shareholders – in its 20th AGM held on December 22 – had approved the installation of the auto dispensing and modernised salt recovery systems for use, according to information available on the Dhaka Stock Exchange (DSE) website.
On June 6, 2021, the company finished setting up an automated warehouse measuring 7,410 square feet. With the new warehouse, the company’s storage capacity will increase by 2,400 metric tonnes and reach 4,000 tonnes.
The company also invested Tk 4.2 crore to launch a new fibre dyeing factory, with the goal to achieve its target of adding an additional Tk 45 lakh more in profits, insiders say.
Queen South Textile Mills was established in 2003 and started operation in mid-2005 with the capacity to dye 25 tonnes of yarn per day. Subsequently, it increased its capacity to 50 tonnes of yarn per day.
The company got listed on the Dhaka Stock Exchange (DSE) in 2018. Its paid-up capital is Tk 130 crore, which was raised for covering the company’s business expansion, and working capital.
In the July-December period of the current FY, its EPS grew by 3 per cent to Tk 0.33, when compared to the year-on-year figure of Tk 0.32. In FY22, the company made a profit of Tk23.61 crore, compared to Tk16.41cr in profits made during the previous year.
In the FY22 period, its EPS grew by 31 per cent to Tk 1.64 compared to the same period in the previous FY. The EPS was Tk 1.25 in the same period last year.
The company’s Board of Directors has recommended 6 per cent cash and 6 per cent Stock dividend for the year ended June 30, 2022. Queen South Textile Mills Ltd got the BSEC approval to issue a 6 per cent stock dividend for its shareholders on December 26, 2022.
The company is located at the Dhaka Export Processing Zone. It is involved in dyeing cotton, polyester, viscose, acrylic, nylon and blended yarn to market the processed yarn as a deemed exporter.
