Friday, May 03, 2024
C&A Textiles Ltd, a publicly traded company, returned to profitability in the first half [July-December period] of FY24 after eight years, due to an increase in production thanks to Alif Industries – which had taken charge of the ailing company.
The local textile manufacturer reported a profit of Tk 3.48 crore in the first six months of FY24, compared to a loss of Tk 1.43 crore in the same period last fiscal year.
Meanwhile, the textile company’s earnings per share stood at Tk 0.15 in H1 of FY24, compared to per share year-on-year loss of Tk 0.06, according to a company disclosure on the Dhaka Stock Exchange (DSE) on Tuesday.
The company said earnings have gone up mainly due to an increase in production after Alif Group was acquired and production resumed.
In the second quarter [October-December of 2023] of current FY, the Chattogram-based textile maker made a profit of Tk 1.58 crore, compared to a year-on-year loss of Tk 0.69 lakh. During the period, its EPS was Tk 0.07 against per share loss of Tk 0.03.
C&A Textiles’ net asset value (NAV) per share was negative Tk 3.71 until December 31, 2023, compared to negative Tk 3.81 until June 30, 2023. The net operating cash flow per share (NOCFPS) stood at Tk 0.12 during the period, up from Tk 0.012.
NOCFPS has increased due to the significant amount of sales preceding collection. The NAV per share has gone up due to increased profit, the company said.
In the first quarter [July-September period] of FY24, the local textile manufacturer reported a profit of Tk 1.90 crore, compared to a year-on-year loss of Tk 74 lakh. Meanwhile, the textile firm’s earnings per share were Tk 0.19 in FY23, compared to Tk 0.10 in the previous FY.
The company paid a 0.50 per cent cash dividend [Tk 0.05 per share] for each ordinary share only for general shareholders, other than sponsors and directors, for the year that ended on June 30, 2023.
In FY22, C&A Textiles paid a cash dividend of 0.4 per cent [Tk 0.04 per share] for each ordinary share only for the general shareholders other than sponsor directors. It was the first cash dividend by the company since its capital market listing in 2015.
The textile firm’s net profit was Tk 2.37 crore in FY22, compared to Tk 121 crore of losses in the previous year.
The declared dividend has been recommended from the sales of scrap and garments left in the factory during the renovation process. Its board of directors had not given any dividends from the fiscal year 2016-17 to 2020-21 due to big losses owing to the factory closure.
C&A Textiles’ shares closed at Tk 9.20 per share on Tuesday on the Dhaka bourse.
In October 2021, the Bangladesh Securities and Exchange Commission (BSEC) allowed Alif Group of Companies to acquire C&A Textiles subject to complying with seven conditions, including the production resumption at the ailing company.
In a news conference in November 2021, the managing director of Alif Group said C&A Textiles would go into production in January 2022. Production of the scam-hit company had remained suspended for six years before Alif Group came in and took over the charge of the company.
Moreover, to bring the company back from the brink, the BSEC restructured C&A Textiles’ board in March 2021. The Chattogram-based textile maker was shut down in 2017 due to a loan scam committed by its previous owners. Later, the Alif Group acquired it in 2021.
