Envoy Textiles profit dips 17% in Jul-Mar FY23

Envoy Textiles Limited, a cent per cent export-oriented denim manufacturer, posted a 17.45 per cent year-on-year plunge in its net profit to Tk 29.35 crore in the first nine months of the current financial year.

The textile manufacturer made a net profit of Tk 29.35 crore in the July-March period of the fiscal year 2022-23, against Tk 35.55 crore in the same period the year before.

The publicly traded firm’s earnings per share (EPS) dipped to Tk 1.75 for the July-March period of FY23 from Tk 2.12 for the same period last fiscal.

Its EPS was Tk 0.53 for January-March quarter this fiscal, which was Tk 0.75 for the same quarter last fiscal, as per a filing posted on the Dhaka Stock Exchange (DSE) on Wednesday.

The denim manufacturer also published its unaudited financial statements for the first two quarters of the current financial year, and the annual report for the fiscal year 2021-22.

Envoy Textiles in the fiscal year 2021-22 had posted a 433 per cent year-on-year surge in net profit to Tk 50.15 crore. It had a profit of Tk 9.39 crore in the previous fiscal.

The textile manufacturer reported earnings per share of Tk 2.99 for the fiscal 2021–22, much higher than the EPS of Tk 0.56 it had clocked for the previous fiscal.

The company’s net asset value per share rose to Tk 38.21 in the last financial year from Tk 37.79 in the year before.

Meanwhile, its net operating cash flow per share returned to the positive territory at Tk 3.43 in FY22 from Tk 2.25 negative in the previous fiscal. The board of directors of Envoy Textiles recommended a 15 per cent cash dividend to its shareholders for the fiscal year 2021-22.

Meanwhile, the company saw its net profit decreased by 30 per cent year-on-year to Tk 8.89 crore in the January-March quarter of the fiscal 2022-23.

Its third quarterly profit was Tk 12.58 crore in the financial year 2021-22. The company’s EPS fell to Tk 0.53 for January-March of FY23 from Tk 0.75 for the same quarter of FY22.

In April this year, Envoy Textiles had announced that its new spinning unit went into commercial production.

The unit, with an annual production capacity of 4,200 metric tonnes of yarn, went into production on April 1.

Although the listed textile firm said the unit was scheduled to be completed by July 2022, it came online a bit late due to the delay in shipments of machinery by the suppliers caused by the Russia-Ukraine war, said the company.

The project is configured with European and Japanese machineries to have a state-of-the-art ring spinning production facility.