Envoy Textiles Limited, one of the leading textile companies in Bangladesh, has reported impressive financial results for the first half of the fiscal year 2024-25, despite facing significant challenges including supply chain disruptions and rising connectivity costs.
In the July-December period, Envoy Textiles achieved a remarkable 30 per cent year-on-year growth in sales, totaling Taka 898 crore. This surge in sales contributed to a staggering 134 per cent increase in profits, bringing the company’s earnings to Taka 68 crore compared to the same period last year.
The company attributed its success to higher sales revenue, which was buoyed by strong export performance despite the adverse effects of political unrest in July and August. During this time, the country experienced significant disruptions, including an internet shutdown and roadblocks, which impacted many businesses. However, the recovery in export earnings during the second quarter played a crucial role in bolstering profits.
A research analyst noted that Envoy Textiles, being an export-oriented company with substantial production volumes, was able to navigate economic fluctuations effectively. With the overall export earnings of Bangladesh increasing by 12.84 per cent year-on-year to US $ 24.53 billion in the first half of FY ’25, Envoy Textiles capitalized on the growing demand for garment products.
Despite the positive financial performance, the company faced challenges with rising operating costs due to increased wages and higher finance costs resulting from elevated interest rates. The central bank’s efforts to control inflation led to a 500 basis point increase in interest rates, causing net interest costs for Envoy Textiles to rise by 51 per cent year-on-year to Taka 71 crore.
