In bid to double its production capacity by installing new machinery, Metro Spinning Limited has opened letters of credit (LCs) for the import of necessary items.
The publicly traded company on Tuesday said through a Dhaka Stock Exchange (DSE) filing, it would replace the old equipment with imported new one under the balancing, modernization, rehabilitation and expansion (BMRE) scheme.
The company also announced they already opened LCs for the import of the newest automated capital machinery equipped with cutting-edge technology (blow room, carding, simplex, auto cone) in order to replace the capacity of 24,000 spindles of the existing machinery.
Once the BMRE is implemented, the overall spindle capacity will be 35,520 spindles, and the company’s production capacity will rise by 110 per cent over the current production capacity, as per the DSE filing.
In addition to cotton yarn, the project is intended to generate other types of yarn, such as value-added man-made fiber (MMF) yarn.
After the announcement, Metro Spinning shares rose by 0.74 per cent to close at Tk 41 each on Tuesday.
According to its latest quarterly data revealed, Metro Spinning Mills Limited posted a 4.44 per cent increase in its earnings in the second quarter of FY23 year-on-year.
Its earnings per share (EPS) stood at Tk 0.47 for Q2, up from Tk 0.45 recorded for the same period a year earlier.
As on December 31, 2022, the company’s net asset value (NAV) per share stood at Tk 20.97 against Tk 20.65 recorded as on June 30, 2022.
Metro Spinning, presently a 'B' category company, got listed on the bourses in 2002.
The company's sponsor-directors jointly held a 30.09 per cent stake, while institutes owned 18.01 per cent and general shareholders 51.90 per cent till July 31, 2023.
