Thursday, May 02, 2024
The profits of Far East Knitting & Dyeing Industries Ltd – a listed textile company – rose 51 per cent in FY23 when compared year-on-year – a five-year high.
According to the company's financial statement for FY23, the company's net profits after tax was Tk 34.56 crore, compared to Tk 22.74 crore recorded in FY22. The company posted earnings per share of Tk 0.97 and a profit of Tk 19.87 crore in FY19.
The company's earnings per share for FY20 and FY21 were Tk 0.3 and Tk 0.79 respectively. Meanwhile, the profits stood at Tk 7 crore and Tk 17.29 crore, respectively.
In October this year, the company reviewed its FY23 financial report and released its first profit for shareholders. The net profit at that time was shown at Tk 33.46 crore.
In a statement on Dhaka Stock Exchange (DSE) website on Tuesday, Far East Knitting mentioned that it has reviewed the financial report for FY23. As seen, the earnings per share (EPS) of the company during this period were Tk 1.58. This was Tk 1.53 without revision.
As a result, the net profit of the company increased by 51.97 per cent year-on-year. The company has attributed this hike in profits to a decrease in the cost of goods sold and increase in other income.
Other income mainly includes the interest income on Special Term Deposit (STD) account and interest income from FDR and Cash Incentive. The contribution of the other income segment is not available as the company is yet to release its full financial report for FY23.
In FY22, the company's other income segment recorded Tk 17.44 crore, which is about 4 per cent higher than the preceding FY.
The company net asset value (NAV) per share is Tk 19.63 and net operating cash flow per shares (NOCFPS) of Tk 1.43 for the year ending June 30, 2023 (revised), against Tk 19.14 and Tk 2.19 respectively for the previous FY.
Revised NOCFPS has dropped due to a decrease in cash received from customers and increase in operating expenses, the company added the disclosures.
After revising the financial report for FY23, the company did not revise the dividend amount despite the increase in net profit. The company has declared a 10 per cent cash dividend to its shareholders for the period.
Far East Knitting will hold its annual general meeting (AGM) on 12 December 2023 to approve the declared dividend, an audited report, and other matters. The record date has been set for 16 November.
Q1 of FY24
Far East Knitting and Dyeing Industries posted earnings per share (EPS) of negative Tk 0.17 for the July-September period, which was negative Tk 0.08 for the same period last year.
In a price sensitive information disclosure, the composite knitwear exporter said the EPS decreased due to an increase in admin expenses and decrease in other income and share of loss from Far East Spinning Industries Limited (Associate Company).
At the end of September, the company's net asset value per share stood at Tk 19.36.
Far East Knitting shares having a face value of Tk 10 apiece are stuck at the floor price of Tk 17.2 for almost one month at the Dhaka Stock Exchange. The company recommended a 10 per cent cash dividend for fiscal year ending on 30 June 2022.
Sponsors and directors jointly hold a 67.20 per cent stake in the company, institutional investors 3.96 per cent, and general investors 28.84 per cent as
