Monno Ceramic Industries Ltd – which is listed in the capital market – posted an abnormal 1,750 per cent year-on-year hike in profits in the first quarter of FY24, driven by lower operational expenses.
In its unaudited quarterly financial statement for the first three months (July-September) of FY24, posted on the Dhaka Stock Exchange (DSE) website on Sunday, the company posted a net profit of Tk 2.79 crore, compared to Tk 15 lakh recorded in the same period last year.
Monno Ceramic Industries posted earnings per share of Tk 0.74 during the Q1 of FY24, compared to TK 0.04 in the same period last FY.
A pioneer, Monno Ceramic’s statement on the DSE website mentions that despite a year-on-year decline in revenue growth during the first quarter, the company profits experienced an increase due to the reduction of the operational expenses and adjustment of deferred tax.
Net operating cash flow per shares (NOCFPS) was Tk 0.23 for July-September 2023 as against Tk 0.56 for July-September 2022. Net asset value (NAV) per share was Tk 81.04 as on September 30, 2023 and Tk 80.29 as on June 30, 2023.
The company stated that the NOCFPS has decreased due to the reduction in cash collection from customers and others during the period. NAV has increased as CWIP has increased during this period.
The value of a construction project that is currently underway, but not yet finished, is referred to in accounting as "construction work in progress" (CWIP).
Monno Ceramic claims to be the oldest porcelain and bone china tableware manufacturer and exporter in Bangladesh, with their clients including some of the largest retailers in USA, Europe and Australia, as well as the domestic buyers.
Its production capacity is two million pieces per month, as well as 75,000 porcelain and 15,000 bone china pieces per day. The company exported products worth Tk 14 crore in FY22, as per their latest financial report available on the company website.
Besides, it also received a 10 per cent cash incentive on export earnings of FY22 from the government amounting it to Tk 1.4 crore last FY. In July last year, Monno Ceramic decided to sell off its unutilised land, and use the proceeds of Tk 20 crore to pay off its debt.
In September 2022, Monno Welfare Foundation, a corporate director of the publicly-listed Monno Fabrics, also sold 57 lakh shares of its holdings to pay off bank loans of Monno Fabrics.
Presently, the company's total shares are 3.77 crore, out of which sponsor-directors hold 1.82 crore shares.
Listed in 1983, the company’s shares closed at Tk 110 per share on the trading floor of the Dhaka Stock Exchange (DSE) on Sunday.
On February 5, 2021, the Bangladesh Securities And Exchange Commission (BSEC) allowed the company to return to the mainboard from the OTC market. The share trading of the company began on the main board on June 13 the same year.
