C&A Textiles Ltd, a publicly traded company, returned to profitability in the first quarter (July-September) of FY24, thanks to Alif Industries – which had taken charge of the ailing company.
The local textile manufacturer reported a profit of Tk 1.90 crore in the first quarter of FY24, compared to a loss of Tk 74 lakh in the same period last fiscal year. Meanwhile, the textile firm’s earnings per share were Tk 0.19 in FY23, compared to Tk 0.10 in the previous fiscal year.
Considering the company’s financial wellbeing, its board of directors on Sunday announced a cash dividend for its shareholders for FY23, the second cash dividend since its capital market listing.
The board of directors has recommended 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.
C&A Textiles’ net asset value (NAV) per share was negative Tk 3.73 as on September 30, 2023, compared to negative Tk 3.81 as of June 30, 2023. The Net Operating Cash Flow per Share (NOCFPS) stood at Tk 0.04 during the period, from Tk 0.008.
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.
“We received a waiver of ban interest of Tk 15 crore for the year that ended on June 30, 2022,” C&A Textiles said.
The declared dividend has been recommended from the sales of scrap and garments leftover 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 10.20 per share on Monday on the Dhaka bourse.
In October 2021, the Bangladesh Securities and Exchange Commission (BSEC) had 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 had 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. Then the Alif Group acquired it in 2021.